Gallagher Premiership side Worcester Warriors are currently on the brink of administration, after it was revealed that they owe a bill as high as £6M to the HMRC (HM Revenue and Customs).
It is unclear what the next step will be, with a 35-point deduction a possibility. However, RugbyPass are reporting that they could avoid this sanction were they to use a 'no fault' clause, which includes the impact of a pandemic.
BBC Sport are reporting that a source has told them that players and staff have been in a state of "limbo" and were "in the dark" over the next step in proceedings.
Staff wages have also been sporadic, and are not expected to be paid on time next week.
Club owners, Jason Whittingham and Colin Goldring, have released a statement: "If a buyer offered to fund and continue the club only if we sold the whole site then we would. Timing is tight and we are running multiple solutions to this situation simultaneously to resolve it as fast as possible.
"We can't guarantee the outcome yet but we can guarantee we will have done everything possible to save this club and your livelihoods."
Twitter Reacts To Worcester News
Poor management from the club's owners has placed Worcester in this perilous situation, and the rugby world has reacted in disgust to what is an incredibly difficult time for the club's players, staff, and fans.
Thinking of all my Teammates, staff & the incredible loyal supporters that always showed up for us in Worcester.
So many have done so much & deserve better 💙💛 Warriors together. pic.twitter.com/BfRtFjp9tm— Donncha O'Callaghan (@docallaghan4) August 25, 2022
Really feel for the fans, staff and players at Worcester Warriors.
This is what happens when the spivs get in.— Three Red Kings (@threeredkings) August 22, 2022
Club valued at 16.7m in 2020. Yet just before winding up order car park and pitches were brought for a mere 400k by same directors in name of diff companies. Now more companies than land....These robdogs have destroyed this club forever. @WorcsWarriors https://t.co/r4CIMyICvy
— Butters Ant (@rugby_dad_146) August 22, 2022
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EXCL: The day after @WorcsWarriors was hit by legal action for unpaid taxes, its directors used another of their companies to purchase the club’s car park, for just £50,000.
Barring an offer to buy, Warriors are expected to go into administration, possibly today... Thread. pic.twitter.com/WWe07egn3e— James Pearson (@jamespearson88) August 22, 2022
Absolutely everyone: Please don’t ruin Worcester’s rugby club and Cecil Duckworths legacy:
The current owners: pic.twitter.com/AQ5jndPB3R— Worcester Faithful (@WorcsFaithful) August 22, 2022
I struggle to understand why there aren't more robust checks on who can own football/rugby clubs. They're hard to make money from legitimately but easy if you fake it for a few years then land grab the assets.
Last of my cutting analysis, the Worcs owners are clearly awful.— Sam Larner (@SamLStandsUp) August 22, 2022
Worcester released the following the statement, after the news broke:
“The club owners and board are fully committed to preserving top-flight professional rugby in Worcester and have been working on solutions to secure the financial future of Worcester Warriors and to pay the outstanding tax owed to HMRC.
“We appreciate that this is unsettling for the players, the employees, the fans, and the community in Worcester and we will continue to work with all stakeholders to establish the appropriate next steps.”
Premiership side Wasps also find themselves in financial trouble over unpaid tax to the HMRC, and a missed payment for a £35m bond debt.
In better news for the clubs, Premiership sides are due an increase in funding from the RFU, with a £20m cash injection due to be shared around the teams.
However, given the extent of the debt Worcester Warriors are faced with, it may only provide partial relief.
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