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RFU issue decision on Wasps and reject Worcester application

By Ian Cameron
(Photo by Getty Images)

The Rugby Football Union have issued their decision on bids to take over both Wasps and Worcester Warriors by their respective consortiums.

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Both Gallagher Premiership clubs collapsed financially within the first six weeks of the season, with administrators for both sides putting forward their preferred bidders to the RFU for the union’s Club Financial Viability Group to review, which included a look at their business plans, financial information and external background checks in order to “understand the level of risk with each proposed bid”.

The RFU have effectively rejected Worcester’s application, as they say Atlas Worcester Warriors RFC Limited have said they are unable to meet the conditions the RFU have stipulated for the application to be accepted.

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It means Wasps will enter the RFU Championship, England’s second flight, while Worcester Warriors are effectively left in the wilderness.

A statement reads: “The RFU Board concluded that the application for Wasps was approved subject to a number of specific conditions being met and that it would continue to work with the bidders through the satisfaction of those conditions over the coming weeks.”

Wasps’ bid does not include the women’s team which is a separate club and which will continue to play as part of the amateur club, Wasps FC, at Twyford Avenue.

“These include a range of financial commitments to ensure that the club remains funded, the lodging of a significant bond, the regular provision of financial and other information, swift payment of rugby creditors, and corporate governance requirements including relating to the club’s board of directors and risk management process.”

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As foreshadowed by comments by Atlas Worcester Warriors RFC Limited yesterday evening, their bid has effectively been turned down as they were unable to meet the conditions imposed by the RFU.

“The RFU put forward a number of conditions that the bidders for Worcester Warriors would need to meet to protect against the particular concerns relating to the club and what had emerged through the due diligence process.

“These include commitments not to dispose of the land around the stadium, thereby securing it for the club and the local rugby community, swift payment of rugby creditors and other key governance conditions, including relating to the club’s board of directors and risk management process. The bidders, selected by the administrators of the insolvent WRFC Trading Limited, have informed us that they are not prepared to meet these conditions, and therefore the RFU Board was unable to approve their application.

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“The RFU Board was also not satisfied with the information provided, in particular relating to the financial position of the buyer and their ability to continue to fund the club and to deliver on the business plan provided which included significant development at the Sixways site.

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“The RFU has not been provided with sufficient evidence of funding. While some information has been provided, this has been only internal P&L information which appears to cover only part of the business of the main shareholder and the RFU was told that no further information could or would be provided. This means that there is no information as to debt levels or shareholder funds and no externally verified financial statements have been provided. Evidence of a non-binding heads of terms for external off-shore financing has been provided, but this is not committed. For these reasons the RFU does not have comfort that the business plan can be funded, nor that rugby is at the centre of the proposal for the business which is an American medical services company.

“The RFU is also concerned by the public statement from the bidders that they are prepared to acquire the site and develop it without a rugby offering.”

The decision may open the door for Steve Diamond’s bid to take over the club, a move which is backed by Adam Hewitt.

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RFU CEO, Bill Sweeney, said: “We are pleased to be able to proceed with the approval for Wasps and thank the bid team and the administrator for the open and collaborative approach working with us through the process.

“We understand that the decision will not be the news that Worcester Warriors’ former staff, players and fans will want to hear; the best long-term interests of the club and rugby in Worcester is our key priority.

“In the coming days we will be in touch with the administrator to discuss other bid options as our goal remains to support the continuation of the rugby club in Worcester. We are prepared to extend the deadlines to explore if an alternative bidder can be found who has the continuation of rugby in Worcester central to its business plan.”

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j
john 22 minutes ago
Will the Crusaders' decline spark a slow death for New Zealand rugby?

But here in Australia we were told Penney was another gun kiwi coach, for the Tahs…….and yet again it turned out the kiwi coach was completely useless. Another con job on Australian rugby. As was Robbie Deans, as was Dave Rennie. Both coaches dumped from NZ and promoted to Australia as our saviour. And the Tahs lap them up knowing they are second rate and knowing that under pressure when their short comings are exposed in Australia as well, that they will fall in below the largest most powerful province and choose second rate Tah players to save their jobs. As they do and exactly as Joe Schmidt will do. Gauranteed. Schmidt was dumped by NZ too. That’s why he went overseas. That why kiwi coaches take jobs in Australia, to try and prove they are not as bad as NZ thought they were. Then when they get found out they try and ingratiate themselves to NZ again by dragging Australian teams down with ridiculous selections and game plans. NZ rugby’s biggest problem is that it can’t yet transition from MCaw Cheatism. They just don’t know how to try and win on your merits. It is still always a contest to see how much cheating you can get away with. Without a cheating genius like McCaw, they are struggling. This I think is why my wise old mate in NZ thinks Robertson will struggle. The Crusaders are the nursery of McCaw Cheatism. Sean Fitzpatrick was probably the father of it. Robertson doesn’t know anything else but other countries have worked it out.

13 Go to comments
A
Adrian 2 hours ago
Will the Crusaders' decline spark a slow death for New Zealand rugby?

Thanks Nick The loss of players to OS, injury and retirement is certainly not helping the Crusaders. Ditto the coach. IMO Penny is there to hold the fort and cop the flak until new players and a new coach come through,…and that's understood and accepted by Penny and the Crusaders hierarchy. I think though that what is happening with the Crusaders is an indicator of what is happening with the other NZ SRP teams…..and the other SRP teams for that matter. Not enough money. The money has come via the SR competition and it’s not there anymore. It's in France, Japan and England. Unless or until something is done to make SR more SELLABLE to the NZ/Australia Rugby market AND the world rugby market the $s to keep both the very best players and the next rung down won't be there. They will play away from NZ more and more. I think though that NZ will continue to produce the players and the coaches of sufficient strength for NZ to have the capacity to stay at the top. Whether they do stay at the top as an international team will depend upon whether the money flowing to SRP is somehow restored, or NZ teams play in the Japan comp, or NZ opts to pick from anywhere. As a follower of many sports I’d have to say that the organisation and promotion of Super Rugby has been for the last 20 years closest to the worst I’ve ever seen. This hasn't necessarily been caused by NZ, but it’s happened. Perhaps it can be fixed, perhaps not. The Crusaders are I think a symptom of this, not the cause

13 Go to comments
T
Trevor 5 hours ago
Will forgotten Wallabies fit the Joe Schmidt model?

Thanks Brett.. At last a positive article on the potential of Wallaby candidates, great to read. Schmidt’s record as an international rugby coach speaks for itself, I’m somewhat confident he will turn the Wallaby’s fortunes around …. on the field. It will be up to others to steady the ship off the paddock. But is there a flaw in my optimism? We have known all along that Australia has the players to be very competitive with their international rivals. We know that because everyone keeps telling us. So why the poor results? A question that requires a definitive answer before the turn around can occur. Joe Schmidt signed on for 2 years, time to encompass the Lions tour of 2025. By all accounts he puts family first and that’s fair enough, but I would wager that his 2 year contract will be extended if the next 18 months or so shows the statement “Australia has the players” proves to be correct. The new coach does not have a lot of time to meld together an outfit that will be competitive in the Rugby Championship - it will be interesting to see what happens. It will be interesting to see what happens with Giteau law, the new Wallaby coach has already verbalised that he would to prefer to select from those who play their rugby in Australia. His first test in charge is in July just over 3 months away .. not a long time. I for one wish him well .. heaven knows Australia needs some positive vibes.

21 Go to comments
B
Bull Shark 9 hours ago
Jake White: Are modern rugby players actually better?

Of the rugby I’ve born witness to in my lifetime - 1990 to date - I recognize great players throughout those years. But I have no doubt the game and the players are on average better today. So I doubt going back further is going to prove me wrong. The technical components of the game, set pieces, scrums, kicks, kicks at goal. And in general tactics employed are far more efficient, accurate and polished. Professional athletes that have invested countless hours on being accurate. There is one nation though that may be fairly competitive in any era - and that for me is the all blacks. And New Zealand players in general. NZ produces startling athletes who have fantastic ball skills. And then the odd phenomenon like Brooke. Lomu. Mcaw. Carter. Better than comparing players and teams across eras - I’ve often had this thought - that it would be very interesting to have a version of the game that is closer to its original form. What would the game look like today if the rules were rolled back. Not rules that promote safety obviously - but rules like: - a try being worth 1 point and conversion 2 points. Hence the term “try”. Earning a try at goals. Would we see more attacking play? - no lifting in the lineouts. - rucks and break down laws in general. They looked like wrestling matches in bygone eras. I wonder what a game applying 1995 rules would look like with modern players. It may be a daft exercise, but it would make for an interesting spectacle celebrating “purer” forms of the game that roll back the rules dramatically by a few versions. Would we come to learn that some of the rules/combinations of the rules we see today have actually made the game less attractive? I’d love to see an exhibition match like that.

29 Go to comments
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