Worcester Warriors Gone

[NellyWellyWaspy]

Maybe someone who has more knowledge of subject can tell me if I?m right or wrong.

So administrator is legally bound to maximise returns for creditors. In terms of the Worcester situation there is a separate situation whereby RFU demand rugby creditors are paid in order for team to be resurrected in championship. The payment to rugby creditors is outside of the administration process as otherwise I guess funds would have to be allocated between all creditors.

So I?m theory the winning bid could have been the lowest. Example winning bid offers ?10m. Next bid is ?6m but they want to return to championship so also have to pay the ?8m to rugby creditors. However administrator only can act on the ?10m versus ?6m. Is that correct understanding?

If it is then I?m not surprised how?s it?s gone. The land and facilities are the prize. If you don?t care about rugby returning you get them at lower overall cost.

Your understanding is correct. The new buyer would of course then stand in the stead of those creditors in any payouts, so might get a little back, but, as always with good intentions (in this case paying rugby creditors and to stop clubs going bust and returning easily), there are unintended consequences. One of which is that there is a good chance the club will die and never come back. As is happening with Warriors. What does surprise me is that somebody is willing to finance Wasps to the extent they can do this. Of course, it hasn't happened yet. Too many balls in the air.

Now you understand why Wasps got in to so much debt. The RFU have pretty much made it impossible to get out of trouble. In a way, they have structured everything to benefit those clubs with seriously rich benefactors. Those with the less so, but still somewhat rich benefactor, seem destined to stay in the Championship, and the best everyone can hope for is below that. A decent club would be in National League 1 or 2. Below that you have the small clubs, like my local club, Stratford on Avon.