Worcester - Atlas have until 2nd May to complete purchase

[Bloke in North Dorset]

The RFU can make up their own rules about whether or not someone buying a bankrupt entity will be allowed back in to the professional game and that should be nothing to do with the Administrator.

Only insofar as those rules do not, or require a third party to, break the law. It could be argued that the rugby creditors rule does just that. Curiously, that same rule also depresses the likely value of the club name and goodwill.

I agree is supressing the value but I'm not sure is against the letter or spirit of bankruptcy laws as we'd have heard from a KC on the issue by now. I agree it might be against the spirit and even intended laws, but that's different. We might be in to tax evasion v avoidance territory here.

[NellyWellyWaspy]

Can other prem clubs really be claiming money for missed games as "Rugby debt? I thought the rugby creditors had been defined, but amounts could fluctuate due to original contracts expiring and other technical matters?

Most if not all commercial contracts exclude consequential damages such as loss income so it will be interesting to see what precedent is set - has anyone ever used the phoenix club provisions to re-establish a failed rugby club?

Coventry went bust and used the rules I think.

[Egret]

The RFU can make up their own rules about whether or not someone buying a bankrupt entity will be allowed back in to the professional game and that should be nothing to do with the Administrator.

Only insofar as those rules do not, or require a third party to, break the law. It could be argued that the rugby creditors rule does just that. Curiously, that same rule also depresses the likely value of the club name and goodwill.

I agree is supressing the value but I'm not sure is against the letter or spirit of bankruptcy laws as we'd have heard from a KC on the issue by now. I agree it might be against the spirit and even intended laws, but that's different. We might be in to tax evasion v avoidance territory here.

The Rugby Creditors rule does not break any laws. It's a commercial transaction that allows a separate legal (to the one that went bankrupt) to buy an accelerated entry to the RFU's league structure.

[WonkyWasp]

Clutching at straws/Scotch mist/flying pigs/etc, could there be the flimsiest chance that the Legends were aware of (or were expecting) this non-action etc on the part of Atlas?  If so (please God) they might  -  just might  -  have had a long-term cunning plan. Or not.

[Egret]

Can other prem clubs really be claiming money for missed games as "Rugby debt? I thought the rugby creditors had been defined, but amounts could fluctuate due to original contracts expiring and other technical matters?

Most if not all commercial contracts exclude consequential damages such as loss income so it will be interesting to see what precedent is set - has anyone ever used the phoenix club provisions to re-establish a failed rugby club?

Coventry went bust and used the rules I think.

Interesting that it can work for Championship clubs.

For Premier League clubs there is a double whammy of a larger Rugby Creditors debt and the need to finance a P share.

[Sliminator]

From Coventry RFC Wikipedia:
..." In December 2009 the club was placed into administration [2] and later in January 2010 brought back out thanks to Jon Bowles.[3] Coventry Rugby Ltd was created at this time and the first Board Of Directors was formed. A 15 point league deduction penalty was applied due to administration and relegation predictably followed from the Championship, with the club regrouping in National League 1 for the 2010?11 season with the club going part-time again."

Interestingly the Administrators were Begbies-Traynor Group.

[Neils]

I wonder if Wasps are waiting to see what transpires on Tuesday.

[Bloke in North Dorset]

I wonder if Wasps are waiting to see what transpires on Tuesday.

If Plan A is to play at Sixways for a few years they have no choice. 

[NellyWellyWaspy]

It might be the other way around. Atlas may be waiting for Wasps (to get their finance in order), without whom Sixways would (maybe) not be viable?

[Neils]

It might be the other way around. Atlas may be waiting for Wasps (to get their finance in order), without whom Sixways would (maybe) not be viable?

If they are they are shot as only one more day.

[Bloke in North Dorset]

It might be the other way around. Atlas may be waiting for Wasps (to get their finance in order), without whom Sixways would (maybe) not be viable?

Good point, but my guess is either way there?s lots of plates spinning in the form of contracts waiting to be signed, all interlinked and waiting for something external to happen.

[Shugs]

Strikes me the brake on things is also the most fundamental- funding. Wasps did say a while back two models were on the table. Funded and pro or non funded and amateur. I guess we?re looking at the second option given the timescales - possibly at Henley.

[Egret]

Strikes me the brake on things is also the most fundamental- funding. Wasps did say a while back two models were on the table. Funded and pro or non funded and amateur. I guess we?re looking at the second option given the timescales - possibly at Henley.

Not sure what you mean by non funded Shugs as a championship side needs additional funding over and above the RFU current funding.

Locating in Henley as a championship side without the clear expectation and route to a swift return to the Premiership is also likely to raise objections from Rams, Chinnor and Henley, all of a similar standard to unfunded New Wasps, albeit all better organised to raise the funds required to operate at that level.

[Shugs]

Yes, not as stark as funded or not. The second option just requires far less cash.

[Bloke in North Dorset]

Are they allowed to use the Wasps brand as an amateur club?

Edit: for clarity I?m refer to the agreement with Wasps amateur club when they went professional.