Worcester aim to re-assure fans with statement

Nick Powell

2 years ago

Worcester Warriors have aimed to re-assure fans as the club released a statement clarifying that they are in discussions with HMRC about their tax liability.

The Daily Telegraph reported on Wednesday that the club were facing a winding-up petition from HM Revenue & Customs over an unpaid tax bill.

But the club released a statement yesterday blaming cashflow problems for the late payment, with the legacy of Covid-19 and cost of living crisis to blame.

*The empty stadiums seen during the pandemic appear to be providing Premiership clubs with a grim financial legacy*

It read: “Worcester Warriors, along with many other businesses and most sports clubs have found the past two years extremely challenging owing to the Covid-19 pandemic and the rise in the cost of living.

“The club owners and board are fully committed to preserving top-flight professional rugby in Worcester and have been working on solutions to secure the financial future of Worcester Warriors and to pay outstanding tax owed to HMRC.

“A solution, which would secure the long-term future of the club, has been approved. Unfortunately, there have been unavoidable delays beyond the club’s control to the final tasks required to complete the funding.

“Having kept HMRC fully apprised of the situation we are disappointed that they have taken the decision to issue a winding-up petition. The club’s directors are in continuing dialogue with HMRC in an attempt to find a speedy and satisfactory resolution.”

*Recently appointed Warriors Director of Rugby Steve Diamond said Worcester’s owners ‘have kept us alive’ with ‘clever investments’ in a Telegraph interview later on Tuesday*

It follows rumours last week that Wasps were facing financial oblivion, owing to failure to repay £35 million raised in bonds that paid for the CBS Arena in 2014.

Those were strongly denied by Wasps owner Derek Richardson who said “We are not in administration, and we are not going to be,” in an interview with The Times, but their total bet liability is just short of £55 million, and with Worcester’s issues both clarifications have done little to ease fears for the future of teams in the league.

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