Worcester’s woes

[Hot_Charlie]

M40 corridor stretches from Warwick to West London, if my geography is correct.
Imaging they would look to stay out of South Warwickshire and Northants, I would guess they would be looking at Oxfordshire Bucks way.
High Wycombe maybe !!!!!!

I suppose if they went to Bicester/Brackley they might try and un-alienate their residual fan base around High Wycombe!

[mol2]

Meanwhile Wasps plan building a 24k capacity stadium "the wasps nest"

Maybe they can sell bonds to raise the money for the build?

https://www.theguardian.com/sport/2023/ ... by-2025-26

That would be 23000 empty seats then!

[TigerFeetSteve]

https://www.cityam.com/exclusive-diamon ... collapses/

City AM reporting there's a way the Atlas deal could still fall through. Two weeks to the NEXT deadline.

[Old Hob]

So how is it that Wasps, who seem to be in a similar, or worse, position have a bye into the Championship?

[TigerFeetSteve]

So how is it that Wasps, who seem to be in a similar, or worse, position have a bye into the Championship?

Because they have agreed to meet the published RFU conditions. That said the way the stadium was hived off separately certainly helped them, be able to meet the conditions.

[Old Hob]

So how is it that Wasps, who seem to be in a similar, or worse, position have a bye into the Championship?

Because they have agreed to meet the published RFU conditions. That said the way the stadium was hived off separately certainly helped them, be able to meet the conditions.

Helped how, Steve? They haven't, now, got a place to play, a team or much else. (Sorry, don't want to hi-jack this thread but the topics are linked.)

[TigerFeetSteve]

So how is it that Wasps, who seem to be in a similar, or worse, position have a bye into the Championship?

Because they have agreed to meet the published RFU conditions. That said the way the stadium was hived off separately certainly helped them, be able to meet the conditions.

Helped how, Steve? They haven't, now, got a place to play, a team or much else. (Sorry, don't want to hi-jack this thread but the topics are linked.)

Before I start I'm not an expert, but this is my understanding of the situation.

Because it lost them over £35million debt that was only associated with the bonds used to buy the stadium (plus there were other debts too which went with the stadium not the club.

My understanding is that with the way the security was written in to the bonds they probably would have had to find that money before they could pay the rugby creditors.

Given one of the RFU stipulations is paying rugby creditors in full, some of those would have counted as "unsecured" to an administrator, so "secured" creditors would have had to be paid in full for unsecured debts to be allowed to be paid off in full. On that basis at a guess from the rumoured debt amount, it's probably meant they have saved somewhere in the region of £50-70million in the cash needed up front.

So they have to rent a stadium, look for finance to build a new one, but even so they should have an income to offset that cost against. Plus Coventry City fans (rightly or wrongly) hated their guts. Gets them away from that unhealthy relationship.


Had they not split Wasps and ACL (Arena Coventry Limited - the organisation who officially owned the ground) I suspect that Wasps new owners could never have afforded the rescue package and they'd have been left starting at the bottom...

As it is they have a league place which over the 10+ years it would take to get up there is worth it's weight in savings.

[Old Hob]

Is there a deadline for Wasps to find a stadium/ a team/ a backroom staff? Or is it just, wing it and the RFU will look after you?

[sk 88]

Is there a deadline for Wasps to find a stadium/ a team/ a backroom staff? Or is it just, wing it and the RFU will look after you?

It appears to be if you are a big name then you can do what you like.

The national league finishes this weekend (other than mop up games, which may decide the Nat 1 title) and its still not entirely clear if 2 or 3 go down due to the RFU's haphazard stance on Wasps!!

[TigerFeetSteve]

Not read the full article yet, but some good points from SPK here. Wasps issues may also be tied up with Atlas takeover of Worcester

https://twitter.com/spkeene/status/1650 ... rMQ4Q&s=19

[TigerFeetSteve]

https://twitter.com/bbchw/status/165072 ... HWEEA&s=19

Atlas have been given a deadline to complete the purchase of the club by from the administrators

[TigerFeetSteve]

https://www.worcesternews.co.uk/news/23 ... -purchase/

[GB72]

Not sure it is a final deadline as such. If the matter does not complete by Tuesday next week, I assume they will look at progress, look at whether there remains a realistic chance of proceeding and then decide whether to stick or twist.

The comment about rugby creditors is a fair point. As far as the administrators are concerned, they are just unsecured creditors, it is only the RFU who give them any higher standing as a condition to play in the leagues.

My opinion, and it is just that, is that the supporters are kidding themselves if they think that the club is coming back. The administrators have one job, to secure as much as possible, ostensibly for the secured creditors and it if that means selling the whole lot off for development, that is what they have to do. They have no obligation to secure rugby at Sixways nor to get any money for the rugby creditors so unless the deadline passes and the Diamond consortium can come up with a higher offer (perhaps taking into account the £500000.00 that Atlas have already paid) then Atlas will be given more time.

[TTRITH]

It goes from bad, to worse.

London Irish are at risk of following Worcester Warriors and Wasps into financial meltdown after players and staff failed to receive their salaries for the month of April.

The American consortium involved in takeover talks with the Gallagher Premiership club informed all employees in a meeting on Friday that their money would not be paid on time.

A follow-up email was sent on Sunday with assurances that confirmation of payment would be received by Monday evening in the UK, once the banks in the United States had opened for business.

But it was an empty promise. The Times understands that no payments were made overnight, raising an all-too familiar red flag for stressed employees.

London Irish, who have £30 million of debt, are the third Premiership club this season to find themselves in this situation. Worcester and Wasps both went bust before Christmas and dropped out of the Premiership.

Worcester’s players and staff faced months of broken promises over unpaid salaries and potential takeovers before the club collapsed. They are all still out of pocket and some have found employment hard to come by.

The new owners of Worcester have refused to revive the club in the Championship because that would require them to pay back all rugby creditors, which would cost up to £8 million.

Wasps are due to return in the Championship next season, having passed the RFU’s initial criteria, but the club are understood to have major funding issues. They have no coaches, no players and no home ground.

London Irish do not have the tax office chasing them, which is ultimately what triggered the collapse of Worcester and Wasps, but they are deemed to be at “high risk” because of their debt and low annual turnover.

Although the club has a training facility that has been used by NFL teams and international rugby teams, London Irish does not own a stadium that can be used to generate non-matchday income.

There were fears last month that London Irish would be unable to pay their players but the American consortium covered the March payroll, but it has failed to do so this time.

London Irish refused to comment over the weekend. A spokesperson for the consortium deflected questions back to the club, even though the players and staff were addressed by a representative of the American investors on Friday. They were told that a deal is close.

Premiership Rugby and the RFU have been approached for comment.

The financial crisis across the league has deepened in recent years. According to a parliamentary investigation, Premiership clubs each lose, on average, £4 million a year. Premiership Rugby failed to secure an uplift on its broadcasting deal with BT Sport. Every club is now saddled with government debt of between £10-15 million after taking out loans to stay afloat during the pandemic.

Premiership Rugby is working to relaunch the league in 2024 as a ten-team competition, removing clashes with Test matches to ensure the England players are available more often.

Promotion and relegation is due to return at the end of next season, via a play-off between the bottom side in the Premiership and the Championship winners, but that is now highly unlikely to happen.

There is an acceptance around the Premiership that something radical needs to change if the league is to attract more investment and avoid sinking further into the financial abyss.

[Rugbygramps]

Really sad about London Irish, but unfortunately not that surprising.
I really hope a solution can be found hopefully one not reliant on money from over the pond.