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Rugby Football Union suspends Premiership Rugby club

The Rugby Football Union (RFU) has suspended the Worcester Warriors from competitions following the club failing to meet the governing body’s 5pm deadline at the start of this week (26 September).

It followed an announcement by the club that its owners, WRFC Trading Limited, had asked the Department for Culture, Media Sport to place the club into administration. Speaking to Telegraph Sport, Begbies Traynor managing partner Julie Palmer said she will lobby the RFU not to relegate the club from the Premiership this season. 


She also said she would seek an adjournment of a winding-up petition by HM Revenue and Customs that could otherwise see the arm of the club that pays their players liquidated next week. 


The suspension of the side was due to the fact that the Worcester Warriors failed to provide evidence of insurance cover, availability of funds to meet the monthly payroll, and a credible plan to take the club forward. 


RFU chief executive Bill Sweeney said:  “We met with players and staff last week to explain why this action would be necessary and regrettably without assurances in place we have had to take this action to protect everyone’s best interests. 


“We hope a buyer can be secured to allow Worcester Warriors and The University of Worcester Warriors to return to professional league rugby.  


“While it is the responsibility of each business owner to manage their individual finances, we will look at learnings from this situation to see what regulation can be put in place to provide all parties with more financial transparency.  


“Rugby is a relatively young professional sport and it has been widely recognised that clubs have been facing financial challenges even before Covid. Successful professional leagues are vital for the well-being of the whole game.  


“They inspire current and future players, delight fans by showcasing high skill levels and the exciting nature of our game. This is why it is so important that we continue to work with Premiership Rugby to improve the structure, governance and business model of rugby union in England.”


It comes a week after fellow rugby club Wasps filed a notice in the high court that it intends to appoint administrators to “protect the club’s interests”. The action was taken by Wasps Holdings Limited amid an “impending threat of action from HMRC” and said it did not mean the business was in administration.

TRI Strategy

 

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