Worcester Warriors’ owners have hit back at suggestions from four Worcestershire MPs for the UK government to place the crisis-hit Premiership outfit in administration.
Such a move would be disastrous for the club and its owners Colin Goldring and Jason Whittingham said they were “disappointed” by the statement from the MPs.
Worcester‘s finances have been frozen by HM Revenue & Customs in their pursuit of unpaid tax, although it is understood that the club’s players have now been paid following an initial delay.
Meanwhile, Premiership Rugby have cleared the Warriors to start their league campaign as scheduled against London Irish at the Brentford Community Stadium on Saturday.
Negotiating with potential buyers
Talks are ongoing with two possible buyers for the club, and despite large debts that have amassed in the wake of the Covid-19 pandemic, the prospect of gate receipts has assisted Worcester’s immediate financial outlook.
On Monday, Worcestershire MPs Robin Walker, Harriett Baldwin, Rachel Maclean and Mark Garnier urged the Department for Culture Media and Sport (DCMS) to put Warriors in administration.
In a joint statement, the MPs said: “Over the last week, staff and players at the club have faced significant uncertainty with deadlines for payroll missed and repeated assurances broken.
“Mobile phones have stopped working and cars have been taken away from players. Events due to take place at Sixways have had to be cancelled as suppliers and caterers have not been paid on time.
“Whilst there does appear to be interest in new investors coming into the club, the interested parties have been clear that they see the best hope of securing its future being a purchase via an administrator.
“As the largest of the club’s debts is owed to the Government via Sport England, the MPs are calling for the DCMS to trigger an administration as swiftly as possible.
“The hope is that this can then result in a quick turnaround with new owners bringing capital into the club in time for the Premiership season.”
Meanwhile, Walker added: “Enough is enough. I have been determined to secure the future of the Warriors, who are a huge asset to our city and county.
“I wanted to give every opportunity for a solution to be found which would avoid the club going into administration, but it is now clear that this is not in sight.
“We have just a week before the start of the professional rugby season and the first Premiership fixtures. I believe the best solution for players, staff and the club itself is rapid action on the part of the DCMS.
“We are, together, calling on them to step in and to do everything they can to secure the club, the stadium and its property assets.
“I am hopeful that the proposals we have had for new investment and new owners can move forward rapidly, and we are calling on Premiership Rugby and the RFU (Rugby Football Union) to facilitate any option which allows the club to stay and play in the top flight.
“It is clear to us now, after all the chaos and worry of the last week, that the best route to that is now through administration.”
Worcester Warriors owners’ response
In a joint response on Worcester Warriors’ official website, Goldring and Whittingham issued a statement in which they expressed their disappointment at the four MPs’ decision to call for the Sixways-based club to be placed in administration.
“We are disappointed to read the statement made by four local MPs today which calls for the Department of Digital, Culture, Media and Sport (DCMS) to force Worcester Warriors into administration,” read the statement.
“We would like to make it clear that we have kept the DCMS fully informed about the financial situation at Worcester Warriors. They are aware of the options which are on the table to save the club together with the disastrous implications posed to the club by any administration, in particular the risk of losing the club’s P-share.
“The DCMS has been very supportive every step of the way and we thank them for their continued support and cooperation.
“The DCMS knows that three sets of buyers are in discussions with us. All three buyers are serious propositions and all the deals being considered would avoid the club going into administration. One of the buyers is moving at an especially rapid pace.
“Avoiding administration is in the best interests of the club’s creditors, not to mention its players and staff.
“Pursuing a deal which includes payment to all creditors as well as working capital best serves the club and the local community. Therefore the DCMS has been giving us the time to pursue viable options.
“On the other hand, forcing Worcester Warriors into administration as these MPs have asked risks the club losing its players and staff, losing its P share, wiping off the debt owed to local businesses and to HMRC, and incurring severe RFU sanctions.
“At no point have any of the MPs who put their names against the statement today been in touch with the club, with Colin, or with me. There has been no attempt at engagement whatsoever.
“They have not asked the club about its situation, they have not offered any support or help, and they have not presented us with any potential buyer or deal. If they have offers from buyers, why have they not shown them to the club? It is interesting that they have chosen such a politically significant day to make such a strong statement on Worcester Warriors.
All 13 Premiership clubs in debt
“It has been publicised today that all 13 Premiership rugby clubs are in debt, most of them for more than Worcester Warriors.
“Warriors were close to having vital funding in place that would have allowed us to move the club forward to be a sustainable operation. The winding up petition issued by HMRC prevented that deal being closed.
“We continue to work tirelessly on a solution to keep all aspects of Worcester Warriors in business, able to pay its debts, and able to carve out a future which holds success both on and off the pitch.
“We understand that we are under scrutiny and that our actions are being questioned. Our best response to this is to stay focused and put all our time and energy into getting the best deal for the club, its players, staff, partners, sponsors and creditors across the line – and that is what we continue to do.”
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