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islander 
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 Topic: Worcester winding up order
Posted: 16 Dec 2022 at 13:42 |
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RFU update - just out. Have posted on 'Wasps/Worcester' Champ thread
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Steve@Mose
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Posted: 15 Dec 2022 at 17:15 |
Atlas claim RFU conditions for deal 'unreasonable'
 The prospective buyers of Worcester Warriors have accused the Rugby Football Union of trying to impose unreasonable conditions on any deal.
Former Warriors chief executive Jim O'Toole leads the Atlas consortium seeking to buy the club and ground.
The RFU has said it expects to make a decision on the deal "ahead of Christmas" after due diligence checks.
But in a statement, Atlas claim the governing body was trying to impose "onerous operational conditions".
As a result, they say plans for Warriors to play in the second-tier Championship next season may not be able to go ahead.
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Atlas are negotiating with administrators Begbies Traynor and in the statement said they did not see any "any major commercial or legal issues arising" to hold up the deal.
But the statement continued: "Since entering into exclusivity with the administrators, we have sought to work collaboratively with the RFU with a view to Worcester Warriors re-entering the Championship for the 2023-24 season.
"Unfortunately, it has not been possible to reach a market or institutionally acceptable, commercially viable proposition with the RFU.
"The position being taken by the RFU gives, in our view, too much control and oversight to the RFU and such control and oversight is over and above what we consider is reasonable and appropriate in the circumstances."
O'Toole and business partner James Sandford, who are backed by US investment, were given exclusivity ahead of several rival bids, one spearheaded by ex-Warriors boss Steve Diamond.
However, they say they cannot accept terms which "hinder any commercial business that is needed to support elite men's and women's' rugby".
The statement adds: "As a result, should the RFU not find the flexibility to remove the over-onerous terms they are seeking to impose on Atlas, we will have no alternative but to conclude the deal with Begbies without the approval of the RFU and without returning elite level rugby to Worcester. |
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Camquin
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Posted: 07 Dec 2022 at 21:45 |
It was what our colonial friends refer to as a "Hail Mary".
They had nothing to lose - and a huge upside.
Retaining Premiership status means £10 P.A. in funding and a therefore presumably in the sale price.
But if it does not come off, not worth throwing more money at
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Sweeney Delenda Est
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Steve@Mose
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Posted: 07 Dec 2022 at 20:39 |
Administrators rule out second appeal against relegation to focus on sale
Worcester Warriors' administrators will not appeal against a decision to uphold their relegation from the Premiership.
The Rugby Football Union dismissed initial appeals by Worcester and Wasps, who are also in administration.
And although Begbies Traynor believes it may have grounds for a second challenge, it wants to focus on completing a deal to sell the club.
"We've now just got to accept that decision so we can press on with the sale," said administrator Julie Palmer.
"We put in an appeal against relegation, we thought we made a really strong case, but we weren't surprised at the outcome. We felt in a sense that the decision had probably already been made regardless of what case we made.
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Atlas Worcester Warriors Rugby Club Ltd, led by former chief executive Jim O'Toole and business partner James Sandford, are preferred bidders, and the RFU has set a 12 December deadline to agree the sale, which would enable the club to start next season in the Championship.
"The purchaser has built a very solid plan based on [Worcester being] a Championship club with a view to being ambitious and getting back in the Premiership in very short order," Palmer told BBC Radio Hereford & Worcester's Worcester Warriors podcast.
"We have strong grounds [to appeal again] but the time that would take would mean we couldn't get a deal done in time for next season.
"We're drawing a line under that in the interests of commerciality so we can try and get rugby played next season."
'The sooner we can move forward the better'
If the Atlas deal is given the go-ahead, the club would then face the challenge of trying to build a competitive playing squad from scratch.
Palmer said that it was not easy to put a squad together quickly, and although the standard of Championship rugby was a bit lower, the "physicality is even greater".
She continued: "I think that's why everybody now wants to get on with this and what we're asking for now is the RFU make a quick and sensible decision on the fit and proper person, suitability test, because the sooner we can move this forward the better."
Begbies Traynor does not expect that the RFU will rigidly adhere to the 12 December deadline if sufficient progress is made before that date.
"Initially in our meetings with the RFU they said that 12 December was a deadline they would like to work to and should be communicated as a hard deadline to get everybody on the same page as quickly as possible," Palmer explained.
"The RFU qualified their own deadline by saying what they didn't really want was everybody rushing around on Christmas Eve trying to get a deal done.
"They wanted to try and get it done earlier on the basis that if there was some slippage, the deal was moving progressively forward at that point in time and although it was a hard deadline, there would be flexibility if the deal was moving in the right direction." |
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Steve@Mose
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Posted: 06 Dec 2022 at 20:35 |
RFU rejects clubs' appeals over Premiership relegation
Worcester Warriors and Wasps have both had their appeals against relegation from the Premiership dismissed by the Rugby Football Union.
Under RFU regulation 5, both clubs made 'no fault insolvency' applications citing the Covid pandemic as the main reason for going into administration and being suspended from the top tier.
But the RFU's club financial viability group rejected both applications.
Those decisions have been further ratified by the RFU board.
Both clubs now have the right of appeal to an independent panel, but have also been reminded that the timeline to agree sales of the clubs is 12 December, to allow the Premiership and its 11 remaining member clubs sufficient time to plan for the 2023-24 season.
The RFU has confirmed that if the expected sales of Wasps and Worcester take place within the timeline, and rugby creditors are paid, then both clubs will begin the 2023-24 season in the Championship.
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Worcester 'perpetually funded by debt'
In Worcester's case, it was their failure to respond to His Majesty's Revenue and Customs over their ongoing tax bill that was the key factor.
"It is acknowledged that Covid did have a substantial financial effect on both WRFC Trading Limited and WRFC Players Limited," the RFU report said.
"The insolvency event in relation to WRFC Players Limited was a direct result, and the insolvency event of WRFC Trading Limited was at least indirectly a result of, winding up petitions filed by HMRC.
"These petitions resulted from a failure of the club to meet its 'time to pay' arrangements with HMRC.
"Despite several requests, the RFU has not been provided with any correspondence between the club and HMRC in relation to this. Therefore, the RFU cannot be satisfied there is no fault by the club.
"More broadly, the evidence that has been provided demonstrates a business model which did appear to be perpetually funded by debt, with no apparent attempt (except anecdotally in the last months) to execute the wider business plan and develop the land around Sixways which would have ultimately improved the chances of creating a self-sustaining model.
"While there may be a possibility that the insolvency events may not have happened were it not for the Covid pandemic, that is not the same as to say there was no fault by the club.
"The directors of the club had allowed the club to be in such a precarious position that a shock such as Covid, the challenging debt markets or another external event would have created a real and increased likelihood of an insolvency event happening." |
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WEvans
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Posted: 02 Dec 2022 at 12:09 |
Camquin wrote:
Raider, That is a good summary of what the regulations say.
However, Worcester (and Wasps) are playing the "It's not fair" card.
And Wasps Legends are playing the "Don't you know who we are" card.
And Bill Sweeney is in charge. Until the vote of no confidence.
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To be fair to Worcester (difficult) and Wasps (extremely difficult) I suppose most in their situations would try this on. It just needs the RFU to show some integrity and some leadership and to tell them no chance.
So it seems likely both will be in the Championship next season and those that have been left out of pocket by the shysters previously running the clubs will remain out of pocket.
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Camquin
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Posted: 01 Dec 2022 at 17:31 |
Raider, That is a good summary of what the regulations say.
However, Worcester (and Wasps) are playing the "It's not fair" card.
And Wasps Legends are playing the "Don't you know who we are" card.
And Bill Sweeney is in charge. Until the vote of no confidence.
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Sweeney Delenda Est
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Raider999
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Posted: 01 Dec 2022 at 16:34 |
WEvans wrote:
Halliford wrote:
WEvans wrote:
Camquin wrote:
One of the unsavoury things about this is that the staff were employed by WRFC players. They are preferred creditors - but WRFC players has no assets and no claim over the assets of WRFC Trading.
HMRC is a preferred creditor of WRFC players due to unpaid PAYE and NI. But while it is a preferred creditor of WRFC Trading - that is only for unpaid VAT.
As WRFC Trading is illiquid, the unsecured creditors will not receive any payment.
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All that needs to be done is for the RFU to say that unless all creditors are paid - irrespective of which disreputable sub-company has been set-up to prevent this - then any reincarnation of the club starts at the very lowest level.
But of course that requires a bit of effort and a lot of integrity so no chance. |
The RFU require all rugby creditors to be paid in full. That would mean the players being paid and, I suspect their PAYE, etc. to HMRC as that impacts future benefits. |
I was talking about all creditors not just the rugby ones (and HMRC). |
dream on Joe bloggs catering etc is getting nothing. As I understand it all players/staff wages and hrmc need paying and be able to play at Sixways next season to be allowed in Championshipor relegated to bottom off the pyramid - Is this correct?
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RAID ON
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WEvans
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Posted: 01 Dec 2022 at 15:11 |
Halliford wrote:
WEvans wrote:
Camquin wrote:
One of the unsavoury things about this is that the staff were employed by WRFC players. They are preferred creditors - but WRFC players has no assets and no claim over the assets of WRFC Trading.
HMRC is a preferred creditor of WRFC players due to unpaid PAYE and NI. But while it is a preferred creditor of WRFC Trading - that is only for unpaid VAT.
As WRFC Trading is illiquid, the unsecured creditors will not receive any payment.
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All that needs to be done is for the RFU to say that unless all creditors are paid - irrespective of which disreputable sub-company has been set-up to prevent this - then any reincarnation of the club starts at the very lowest level.
But of course that requires a bit of effort and a lot of integrity so no chance. |
The RFU require all rugby creditors to be paid in full. That would mean the players being paid and, I suspect their PAYE, etc. to HMRC as that impacts future benefits. |
I was talking about all creditors not just the rugby ones (and HMRC).
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Halliford
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Posted: 30 Nov 2022 at 17:16 |
WEvans wrote:
Camquin wrote:
One of the unsavoury things about this is that the staff were employed by WRFC players. They are preferred creditors - but WRFC players has no assets and no claim over the assets of WRFC Trading.
HMRC is a preferred creditor of WRFC players due to unpaid PAYE and NI. But while it is a preferred creditor of WRFC Trading - that is only for unpaid VAT.
As WRFC Trading is illiquid, the unsecured creditors will not receive any payment.
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All that needs to be done is for the RFU to say that unless all creditors are paid - irrespective of which disreputable sub-company has been set-up to prevent this - then any reincarnation of the club starts at the very lowest level.
But of course that requires a bit of effort and a lot of integrity so no chance. |
The RFU require all rugby creditors to be paid in full. That would mean the players being paid and, I suspect their PAYE, etc. to HMRC as that impacts future benefits.
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WEvans
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Posted: 30 Nov 2022 at 15:08 |
Camquin wrote:
One of the unsavoury things about this is that the staff were employed by WRFC players. They are preferred creditors - but WRFC players has no assets and no claim over the assets of WRFC Trading.
HMRC is a preferred creditor of WRFC players due to unpaid PAYE and NI. But while it is a preferred creditor of WRFC Trading - that is only for unpaid VAT.
As WRFC Trading is illiquid, the unsecured creditors will not receive any payment.
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All that needs to be done is for the RFU to say that unless all creditors are paid - irrespective of which disreputable sub-company has been set-up to prevent this - then any reincarnation of the club starts at the very lowest level.
But of course that requires a bit of effort and a lot of integrity so no chance.
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Camquin
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Posted: 30 Nov 2022 at 11:28 |
One of the unsavoury things about this is that the staff were employed by WRFC players. They are preferred creditors - but WRFC players has no assets and no claim over the assets of WRFC Trading.
HMRC is a preferred creditor of WRFC players due to unpaid PAYE and NI. But while it is a preferred creditor of WRFC Trading - that is only for unpaid VAT.
As WRFC Trading is illiquid, the unsecured creditors will not receive any payment.
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Sweeney Delenda Est
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Steve@Mose
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Posted: 30 Nov 2022 at 11:12 |
Preferred bidders Atlas given two more weeks to finalise offer
Worcester Warriors' preferred bidders - fronted by Jim O'Toole - have been given two more weeks to finalise their bid for the relegated Premiership club.
Atlas Worcester Warriors Rugby Club Ltd, led by ex-Warriors CEO O'Toole and business partner James Sandford, were chosen ahead of a bid led by the club's former director of rugby Steve Diamond.
The consortium's exclusivity period had been due to end on 30 November.
But an extension until 14 December has come from administrator Julie Palmer.
One key part of the need for extra time is to provide clarity from English rugby's two governing bodies, the Rugby Football Union and Premiership Rugby, on two key issues - suspended Warriors' now seven-week-old appeal at relegation from the Premiership and the loss of their 'P' share, the club's rights to hold on to their allocation of revenue generated from the league, worth about £2.5m per club, about 10% of each club's income.
Palmer, from administrators Begbies Traynor, said: "Following a period during which the preferred bidder has been working at speed to complete the transaction to acquire the business and assets of Worcester Warriors, we are extending the period of exclusivity for a period of a further two weeks as originally anticipated.
"This remains a complex transaction with the focus of all relevant parties and stakeholders on ensuring a long-term viable future.
"While the sale is not conditional on these outcomes [of relegation appeal and P share decision], early clarity would assist us with the tight deadlines we are working to in order to rescue the club and ensure a playing squad can be rebuilt in good time for next season." |
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Steve@Mose
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Posted: 21 Nov 2022 at 16:17 |
The full extent of Worcester Warriors' debts has finally been revealed as totalling more than £30m, in a report sent to the club's creditors by their administrators, Begbies Traynor.
The report also discloses that former owners Jason Whittingham and Colin Goldring claim they are still owed more than £2m by the club's companies.
Begbies Traynor is still negotiating the sale of Warriors to a consortium.
The chief contenders to take over are fronted by ex-Warriors CEO Jim O'Toole.
After submitting a "significantly higher" bid than rivals, the report shows O'Toole and James Sandford's consortium paid a deposit of £500,000 to be able to negotiate exclusively.
That exclusivity period lasts until the end of November. |
Edited by Steve@Mose - 21 Nov 2022 at 16:22
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Camquin
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Posted: 16 Nov 2022 at 22:12 |
Apparently among American backers is the foundation of the Wilson brothers from the Gap band, as in "Oops upside your head."
They have a history in philanthropy, including prostate cancer support.
Though some of the other backers are potentially less funky.
The supporters are not necessarily convinced.
But at the end of the day, it is the receiver who needs to be convinced.
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Sweeney Delenda Est
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Richard Lowther
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Posted: 16 Nov 2022 at 21:13 |
tigerburnie wrote:
Someone is funding the Warriors Ladies team, so they can continue playing, not sure where they play though. |
I understand it is a short term investment to get them started this season - which was delayed due to the World Cup and they will be playing at Sixways.
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tigerburnie
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Posted: 16 Nov 2022 at 21:10 |
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Someone is funding the Warriors Ladies team, so they can continue playing, not sure where they play though.
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Richard Lowther
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Posted: 16 Nov 2022 at 20:39 |
This is what I posted on the Worcester board.
None of this inspires any confidence in me.
A documentary many be good but it won't help fund the club. It would be the film makers who pick up the sponsorship/advertisers not the club and if it shows the club in any kind of negative light then sponsors won't want tarnishing by being involved with the club.
As I have said before the lack of any real web presence for any of the people involved isn't a good start. Add to this the newness of all the companies involved and the fact that none filed accounts showing any profit.
'Follow the money' is always good advice and I am just not seeing any.
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Steve@Mose
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Posted: 16 Nov 2022 at 19:45 |
Documentary to feature Worcester Warriors' bid for revival
Efforts to revive the fortunes of Worcester Warriors are set to feature in a behind-the-scenes documentary.
The rugby union club was wound up on 5 October with debts of more than £20m, including £6m owed to HM Revenue and Customs.
Preferred bidder status has since been given to a consortium led by former Warriors chief executive Jim O'Toole and business partner James Sandford.
Mr Sandford hopes the documentary will tell the human side of the story.
Speaking to BBC Hereford & Worcester, he said it was important people understood the "legacy that's been left behind" and wanted to raise awareness of the club locally and get more people interested in the sport. |
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Richard Lowther
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Posted: 28 Oct 2022 at 10:48 |
tigerburnie wrote:
Diamond ran Sale on a shoe string budget, if anyone can do this job then he probably can, Cohen has a lot of business acumen if not any spare dosh. |
He may have done but Sale made losses every year (bar 2019 accounts covering CVC money) -averaging a million each year on the figures I looked at.
Is that a sustainable business plan?
Worcester will see a substantial drop of income* when they are in the Championship and it is highly likely they will not retain their P share, so someone has to have either a sustainable business plan - exploiting the Sixway assets# or have deep pockets, and as Diamond has ruled out his investor willing to carry large losses each year I remain unconvinced.
*Crowds will also drop as historical records will show
#I posed the question a while back on the Worcester board about the potential plans for hotels, medical villages, conference facilities, e-charging etc and asked if those were viable ideas why haven't they been done already? Is there really a demand that will make the club money or are they pie in the sky ideas? Surprisingly no one replied.
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