Wasps granted approval to re-join RFU but Worcester Warriors' application rejected

Worcester's future remains in jeopardy after a takeover bid was rejected by the RFU

Wasps will take their place in the Championship next season after their takeover is approved by Rugby Football Union, but Worcester will not join them unless they find new buyers.

Worcester and Wasps both lost their Gallagher Premiership status after entering administration earlier this season and their appeals to overturn that decision have been rejected.

The administrators of Wasps, FRP, accepted an offer to buy the Coventry-based club on October 30 from HALO22 Limited, a consortium that includes members of Wasps Legends.

This offer has been approved by the RFU and Wasps have confirmed that they will compete in the championship next season. In a statement, Wasps also said that “a land-sharing agreement has been reached with a venue in the Midlands – to be announced in the near future – to host its home games”.

A statement from the RFU said: “The RFU Board has concluded that the application for Wasps has been approved subject to the satisfaction of a number of specific conditions and that it will work with the bidders over the coming weeks until these conditions are met.

“This includes a range of financial commitments to ensure the club remains funded, the deposit of a significant bond, the provision of financial and other information on a regular basis, the prompt payment of rugby creditors and corporate governance requirements including related on the club’s board of directors and risk management process.”

Wasps will play in the championship next season after their takeover is approved

However, Worcester’s future remains in doubt after their takeover by Atlas Worcester Warriors RFC Limited was rejected. The founding directors of Atlas are ex-Worcester Warriors boss Jim O’Toole and former London Ireland forward James Sandford, who is the managing director of Atlas Sport Tech.

The RFU board said the ownership model failed to meet a number of conditions, meaning it could not approve the acquisition and would instead work with Worcester Administrator Begbies Traynor to facilitate alternative deals.

Atlas can still go ahead with his takeover after being picked by Begbie’s Traynor but the lack of an RFU approval would be a hammer blow to hopes of preserving Worcester’s professional status.

In what was seen as a pre-emptive strike ahead of the RFU’s decision, Atlas released a statement on Thursday accusing the RFU of “imposing onerous operating conditions” and thereby “hindering any commercial deal done in support of elite rugby for men and women is required”.

RFU: Rugby is not the focus of the Atlas proposal

An RFU statement read: “The RFU has proposed a number of conditions that bidders for Worcester Warriors would need to meet in order to be immune to the specific concerns relating to the club and those that have surfaced as part of the due diligence process protection. These include commitments not to dispose of land around the stadium, thereby securing it for the club and the local rugby community, prompt payment by rugby creditors and other important governance covenants, including in relation to the club’s board and the risk management process.

“The bidders selected by the administrators of the insolvent WRFC Trading Limited have informed us that they are not prepared to comply with these conditions and therefore the RFU Board could not accept their application.

“The RFU Board were also not satisfied with the information provided, particularly regarding the financial condition of the buyer and its ability to continue to fund the club and deliver on the business plan provided, which included significant development at the Sixways site.

“The RFU was not provided with sufficient proof of financing.

Among the RFU's terms for its proposed acquisition of Worcester was development around their Sixways stadium

“While some information was provided, this was only internal profit and loss information which appeared to cover only part of the major shareholder’s business and the RFU was told that no further information could or would be provided.

“This means that no information on debt levels or shareholder funds is available and no externally verified financial statements have been submitted. Evidence of non-binding conditions for external offshore financing has been provided, but is not binding. For these reasons, the RFU has no assurance that the business plan can be funded, nor that rugby is the focus of the proposal for the company, which is an American medical services company.

“The RFU is also concerned by the bidders’ public statement that they are willing to acquire the site and without developing a rugby bid.

“The bidders for Worcester Warriors failed to accept the regulatory position and did not adequately address the required terms and therefore put themselves in a position where the RFU board could not approve their bid.

“The RFU will now be working with the Administrator to enable alternative offerings that would secure professional rugby at Sixways and are working on a timetable to make this possible. The RFU urges the Administrator not to pursue a sale that does not guarantee a future rugby within the local community.”

Steve Diamond and Adam Hewitt are still poised to go with Worcester’s takeover proposal

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Former Worcester rugby director Steve Diamond has reiterated his desire to save the club from administration after the RFU rejected an attempted takeover.

Following the collapse of Atlas’ bid, former Worcester rugby director Steve Diamond has reiterated his desire to bail out the club from administration.

Diamond leads a consortium that includes the club’s former sponsor Adam Hewitt and is still hoping to gain preferred bidder status with the administrators, though he hasn’t heard if her bid will be considered.

He said Sky sports news: “Me and Adam Hewitt put together a plan and it wasn’t deemed the right plan or preferred bidder in October, so we went away to refine it in case another opportunity arises and it looks like it , as if that were in The process. We haven’t heard from the administrators. We’ll wait and see what happens on Monday.

“We have a secure business plan, a dynamic rugby plan and are growing the club into a sustainable business.

“From day one it’s been about rugby and the community, the foundation, women’s rugby, the players’ journeys. Worcester has the second largest region, it’s huge, and has produced so many children who later went on to play professionally and internationally “We don’t want that to go. It took decades to build. There are a lot of real estate developers who want that side, but the government says any development must benefit elite and community rugby.

“I’m really happy that there is more than one horse in the race and that people are taking care of the club. If Atlas got it I would have been the first to thank them. But they seemed to have the hiccups and they could. But if not, we are ready and willing to deliver on the business plan we put forward.

“Wasps seem to have moved on pretty quickly. Let’s hope the Force allows us to show what we’re up to. And if we are fit and able to get through this process, the best consortium can win.”