[Flumpty]

Wasps: Rugby club's debts totalled £95m when they went into administration.


https://www.bbc.co.uk/sport/rugby-union/63874443


"It was not just taxpayers affected by the collapse of Wasps as more than 40 local firms lost money" & I can sympathise with them all.

[SimonG]

Absolutely. We keep hearing that Wasps and Worcester may be allowed to play in the Championship next season if all rugby debts are paid. This should only even be considered if absolutely ALL debts are paid. Otherwise form a new club and start at the very bottom level.

[Elgar]

Agree. PRL, RFU, rugby etc can't be seen to allow phoenix clubs set up to step out of debt obligations avoiding the worst of rugby consequences.

[A38]

Greetings from Worcester.

A couple of points to add to the discussion.

The RFU, as part of their approval of the new owners process, require all rugby debts to be repaid. Rugby debts are defined as unpaid salaries due for the remaining duration of players' contracts - less what has been earned elsewhere during that period. It was quite a complicated job apparently for the Administrators, calculating what was and wasn't due to each and every person involved but whatever total was arrived at any purchaser would have to pay up front.

Other creditors will be dealt with by the Administrators following the usual statutory process.

First in the creditor pecking order will be the secured creditor - DCMS through the agency of Sport England. This was the Covid related loan which most / all clubs benefitted from. We understand that for Worcester it stood at some £15m and that it was secured by the P shares, the stadium and surrounding land.

As you will know the P shares are to be clawed back and the proceeds will be used to reduce the DCMS secured loan.

However, again as we understand it, the DCMS residual loan will be rolled forward and the new owners will take it on. Thus, the Worcester phoenix operation will not be debt free as some people have suggested.

The Administrators have indicated that, on completion of their work, the Revenue will get a (small?) percentage of outstanding tax due but that unsecured creditors - including season ticket holders - will receive nothing.

I hope that this is helpful - but until we see the Administrators' final report we shall not know the final position.

[SimonG]

"Other creditors will be dealt with by the Administrators following the usual statutory process."

I think this is the key point from your post A38 which I suspect means many will go unpaid.

[A38]

Indeed.

I suppose I should also add that the administration process is said to have been quite a complicated exercise, something which will no doubt be reflected in fees charged. To be fair though, the Administrators having been running the facilities at Sixways presumably at a profit thereby enhancing value.

But none of this takes away from our not being able to talk about team selection for this weekend's game - something which prior to administration we all took for granted.

[chris1850]

Indeed.

I suppose I should also add that the administration process is said to have been quite a complicated exercise, something which will no doubt be reflected in fees charged. To be fair though, the Administrators having been running the facilities at Sixways presumably at a profit thereby enhancing value.

But none of this takes away from our not being able to talk about team selection for this weekend's game - something which prior to administration we all took for granted.

Yeah. Can't imagine how you must feel. There but for the grace of God go us all. Sincere Best Wishes, A38 and all Worcester supporters