WITH Christmas fast approaching, it seems that any hopes of a positive end to this Worcester Warriors saga before 2023 are fast fading.

Before last Friday, the Atlas Worcester Warriors consortium (fronted by Jim O'Toole and James Sandford) has been granted preferred bidder status, meaning they were in prime position to buy the club out of administration.

However, on December 16, the RFU confirmed that they would not approve of the current deal and urged the administrators, Begbies Traynor, to consider new/previous offers to acquire the club and its assets.

What do the RFU not like?

The RFU put forward a number of conditions that the bidders for Worcester Warriors would need to meet to protect against the particular concerns relating to the club and what had emerged through the due diligence process.

These included "commitments not to dispose of the land around the stadium, thereby securing it for the club and the local rugby community, swift payment of rugby creditors and other key governance conditions, including relating to the club’s board of directors and risk management process".

The RFU said in their statement on December 16 that the Atlas group informed them that "they are not prepared to meet these conditions".

This is what they said about the deal, in a bit more detail:

  • The RFU Board was also not satisfied with the information provided, in particular relating to the financial position of the buyer and their ability to continue to fund the club and to deliver on the business plan provided which included significant development at the Sixways site.
  • The RFU Board had not been provided with sufficient evidence of funding
  • While some information has been provided, this has been only internal P&L information which appears to cover only part of the business of the main shareholder and the RFU was told that no further information could or would be provided.
  • There was no information as to debt levels or shareholder funds and no externally verified financial statements have been provided
  • The RFU is also concerned by the public statement from the bidders that they are prepared to acquire the site and develop it without a rugby offering.

So now what?

Shortly after the statement from the RFU, Begbies responded with their own, confirming that they had been in touch with all interested parties to explain that negotiations had been reopened.

The general feeling from the RFU is that they are far from content with the Atlas deal, and would prefer Begbies to listen to other offers, which would include Steve Diamond's group of investors.

But the administrators did say they had offered an "urgent meeting over the weekend (one just gone) between the RFU and Atlas Worcester Warriors to try and resolve the position".

But the Worcester News was told on Wednesday afternoon that, as of yet, there is no indication that the RFU plan to do so.

But their (administrators) role in this whole process, whether people like it or not, is purely a financial one and their requirement is to find a deal that best suits the creditors and not primarily to bring rugby back to Sixways.

The administrators are awaiting further clarity as to what the issues are regarding the deal between Atlas and Begbies. That deal is far from being off the table.

Will there be any rugby for Warriors next season?

It seems unlikely at this stage. Currently, there is no squad and no staff at the club, time would be needed to reform.

And the deadline for applying to be in the Championship has passed, although the RFU had said before they would be willing to be flexible.

But we are back to square one it feels, and rugby certainly feels a way off at this point.