Statement from Jim O'Toole :
Would going into Administration mean that they get a points deduction?
The PRL can chose not to impose such a deduction due to the Covid situation. BUT ... and this is a BIG but. Not imposing a penalty would encourage any other club who is in a similar situation to take advantage of the Covid joker and do the same.
Worcester have been rearranging the financial asset deckchairs to try to protect some assets from seizure by creditors. Not that I think that would necessarily work, as such shenanigans can be reversed by the Court, but such action is costly and could take years.
One thing you can be sure of. HMRC will want someone to pay them otherwise they will vote against any proposal. The assets of the existing club cannot be liquidated and used to preferentially pay HMRC, so the new buyer would have to agree to cover HMRC for any shortfall (in effect, buy that debt). The buyers are unlikely to do so for other debtors. The rest will be left to hang out to dry. A lot of companies, council and individuals are going to lose a lot of combined money.
Now, just assuming that all the involved business go in to a combined administration, the administrator becomes 100% liable to pay ongoing debts, such as wages. The players and coaches are going to be in the firing line here. Their contracts would legally have been ended, allowing the administrator to impose whatever deal they wanted, knowing the players can either accept of walk away from rugby.
What happens to Worcester's share in the PRL? Frozen, for the time being, probably.
What would the PRL do? Would it force Worcester's hand regarding players, by giving the other clubs permission to cherry pick players and for them to be temporarily outside the cap, thus forcing the administrator to honour existing contracts or lose players, and thus the club would fold anyway?
Going in to administration is a nuclear option. What you think you might achieve and be able to do often doesn't turn out that way.
Here, the PRL