Wasps and Worcester went into relegation 13 days apart in October, and both clubs were relegated and suspended from the Premiership while they searched for owners; Both clubs made ‘No Fault Insolvency’ requests, which if accepted would have ended their relegation.
Last Updated: 06/12/22 4:12pm
Worcester and Wasps had a ‘No Fault Insolvency’ application rejected
Wasps and Worcester’s attempts to reverse their relegation from the Premier League have been rejected by the Rugby Football Union, with the clubs blamed for their financial collapse.
The two clubs began a 13-day spell in October, when both were relegated and suspended from England’s top rugby league while they searched for new owners.
The managers of both clubs submitted ‘No Fault Insolvency’ documents, citing the Covid-19 pandemic as their main reason for stepping down, which if accepted would have helped them retain the Premier League title.
However, the RFU’s Club Financial Viability Group found that the Wasps provided “insufficient evidence” to prove the club’s innocence, with Worcester’s “business strategy” cited as the main reason for rejecting their application.
Both clubs have the right to apply for an independent club, with the RFU extending the December 12 deadline for the sale of each team to be completed, to allow them to take part in the Championship for the 2023-24 season.
Both teams have been relegated from the Rugby Premiership
In a statement released after the decision was announced on Tuesday, RFU chief executive Bill Sweeney said: “We are all deeply concerned by the poor performance of Worcester Warriors and Wasps rugby teams.
“We appreciate that this decision will be disappointing for clubs and their fans, but it is clear from the Club Financial Viability Group’s research that there are factors beyond Covid that have caused clubs to find themselves in trouble.”
In November, Sweeney came under fire from members of the Department for Digital, Culture, Media and Sport (DCMS) select committee, who accused him of being an “ivory tower” over the RFU’s role in clubs entering the administration.
RFU chief Bill Sweeney has called for “greater financial transparency”
The DCMS committee highlighted the RFU’s failure to reform its fit and proper tests, despite the sport’s governing body noting that Worcester part-owner Colin Goldring had previously been sanctioned by the Solicitors Regulation Authority.
Sweeney added: “This has reinforced the need for good financial performance between clubs, Premier Rugby and the RFU so that both organizations are transparent about how these businesses are managed.
“We are already looking at plans with Premiership Rugby to explore how we can change the structure, governance and business model of rugby in England and help clubs become more sustainable.”
More to follow…
