Worcester Warriors have been placed into administration and both their teams have been suspended from all RFU competitions after they failed to meet a 5pm deadline providing evidence of available funding.
The requirements were proof insurance cover, availability of funds to meet the monthly payroll, and a credible plan to take the club forward.
The Department for Digital, Culture, Media and Sport (DCMS) later agreed to place Worcester into administration, after a request from their ownership.
Few expected the club to meet the deadline, with Saturday’s win over Newcastle seen by many as a send-off, but it is still unclear what will happen next.
The RFU statement mentioned that next steps for the club itself will be discussed with both Premiership Rugby and the DCMS, while there will also be conversations about how this year’s season of the Premiership, Premier 15s and men’s Academy competitions go forward.
Speaking about the situation Bill Sweeney, RFU CEO said: “We appreciate this is incredibly difficult news for fans, staff and players. We would like to thank the staff and players who have worked tirelessly over recent weeks to enable matches to continue.
“We met with players and staff last week to explain why this action would be necessary and regrettably without assurances in place we have had to take this action to protect everyone’s best interests.
“We hope a buyer can be secured to allow Worcester Warriors and The University of Worcester Warriors to return to professional league rugby.”
The recent chaos is likely to provoke even more discussion on the structure of the Premiership and English club rugby in general.
The 13 teams currently in the Premiership each own a share in the company operating the league, giving them preferential access to funds generated and choking off opportunities for teams in lower tiers.
Former Premiership sides have suffered financial difficulties in the last five years. London Welsh went into liquidation, falling to the bottom of the English league system, and Leeds Tykes lost key investment which forced them to become a semi-professional club, dropping to the lower half of the third tier.
But never before has a team owned shares in Premiership Rugby Limited (PRL) at the time of their demise, and Sweeney acknowledged the discussions and changes that needed to be made.
“While it is the responsibility of each business owner to manage their individual finances, we will look at learnings from this situation to see what regulation can be put in place to provide all parties with more financial transparency.
“Rugby is a relatively young professional sport and it has been widely recognised that clubs have been facing financial challenges even before Covid.
“Successful professional leagues are vital for the wellbeing of the whole game. They inspire current and future players, delight fans by showcasing high skill levels and the exciting nature of our game.
“This is why it is so important that we continue to work with Premiership Rugby to improve the structure, governance and business model of rugby union in England.”
Shortly after the announcement from the RFU, Warriors were placed into administration following a request by owners Colin Goldring and Jason Whittingham.
A statement from them read: “We are grateful to DCMS and Sport England as the Covid19 loan Programme Manager for accepting our request to place the club into administration.
“Both the club and DCMS will continue to co-ordinate efforts to find a rescue for the club if there is any possibility of it being saved.
“The administrators will assess any rescue options for some or all of the business as and when offers are made, while ensuring public funds are protected.”
For exclusive stories and all the detailed rugby news you need, subscribe to The Rugby Paper website, digital edition, or newspaper from as little as 14p a day.
