wasps Confirm Return As Worcester’s Struggles Continue

Wasps have been given approval to play in rugby’s second-tier Championship for the 2023-24 season, but Worcester Warriors’ application has been rejected by the Rugby Football Union (RFU).

The RFU board had been assessing the applications from bidders aiming to take over the two stricken clubs.

Both Wasps and Worcester were first suspended and then later removed from the Premiership after falling into administration.

Worcester’s debts totalled over £30m when it entered administration in October but was subject of a bid from ex-Warriors chief executive Jim O’Toole and his Atlas consortium.

However, the group has seen its bid rejected on the grounds of its refusal to meet the conditions set by the RFU. The conditions included not disposing of the land around Worcester’s Sixways stadium and swift payment of rugby creditors.

English rugby union’s governing body said it will instead work with Worcester’s administrator, Begbies Traynor, to enable alternative bids in the hope of preserving professional rugby at Sixways.

An RFU statement read, ‘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 has 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.

‘For these reasons the RFU does not have comfort that the business plan can be funded, nor that rugby is at the centre of the proposal for the business which is an American medical services company.’

Unlike Worcester, Coventry-based Wasps did fully satisfy the RFU requirements and has confirmed its return to the professional rugby next season. This announcement sees the club’s sale to HALO22 Limited, a company owned by former non-executive director Christopher Holland, officially confirmed.

Andy Scott, a former CEO of 188Bet and Interim CEO of the Wasps Legends Charitable Foundation, has been appointed as Chief Executive Officer, and will be supported by former players including Kenny Logan and Peter Scrivener, as well as a new main board of senior level executives.

As part of proposals accepted by the RFU, a groundshare agreement has been reached with a Midlands venue – which will be ‘announced in the near future’ – to host its home games.

The ground will not be its former home – the CBS Arena – which was recently purchased by Mike Ashely’s Frasers Group.

Christopher Holland, commented, “As the new custodian of Wasps, I am fully aware of the responsibilities I have to its supporters, history and heritage. I do not underestimate that duty.

“Even though it has been an extremely challenging time for everybody connected with the Club, today’s decision is a reward for the hard work undertaken to date and means we can now start planning for the future.

“There is, however, a long road ahead of us. In addition to fulfilling the obligations to rugby creditors as set out in regulation five by the RFU, we continue our conversations with investors to improve the funding we have acquired to date.

“We are diligently creating a viable long-term business model for the Club, and we have had to meet rightfully stringent and modern business requirements for regulatory control and corporate governance. The RFU and PRL have been a supportive partner during the process.”