From the DT
Worcester Warriors may be refused entry to next season’s Championship
RFU unhappy with prospective new owners who have, as yet, been unable to supply supply suitable evidence of business plan
Worcester Warriors are on the brink of being refused entry to next season’s Championship, with their prospective new owners and the Rugby Football Union at war over a rescue deal for the stricken club.
Telegraph Sport can also reveal that Wasps, who were also thrown out of the Premiership after being plunged into administration, are close to being allowed to re-enter the English rugby pyramid in the second tier following their own takeover.
But, unless there is a dramatic U-turn, the RFU’s board will meet on Thursday to rubber-stamp a recommendation by its Club Financial Viability Group (CFVG) not to permit Worcester to join them.
That follows what it can be revealed is an on-going row between Warriors’ prospective new owners, Atlas Worcester Warriors Rugby Club Ltd, and the RFU over strict conditions the latter had been seeking to impose on their rescue deal.
Telegraph Sport has been told the CFVG was not satisfied the information provided by the buyers, in particular relating to their financial position, demonstrated their ability to continue to fund the club and to deliver on their business plan, which includes significant development at the Sixways site.
The conditions imposed on the deal included an RFU veto over the disposal of land around the stadium, swift payment of rugby creditors, commitments to a women’s team and other key governance conditions.
Atlas, fronted by former Worcester chief executive Jim O’Toole and bankrolled by money from the United States, are said to be furious at the conditions being imposed and to have threatened legal action over any refusal to allow their entry into the Championship.
They were said to be committed to proceeding with the takeover of WRFC Trading Limited regardless, which would mean they would own the club and its assets but have no league to play in.
The approval of Wasps’ takeover was said to have been more straightforward, with the club having lost its own stadium, the Coventry Building Society Arena, when they were plunged into administration.
The ground was bought by Mike Ashley’s Frasers Group and the club have been in negotiations to become a tenant there.
Always a Wasp