Company holding Worcester Warriors players contracts wound up
A decision was made in court this morning (Wednesday)
Last updated 5th Oct 2022
A company which holds Worcester Warriors Rugby Club player contracts has been wound up by a judge in a specialist court.
HM Revenue and Customs (HMRC) is pursuing the Warriors for unpaid tax in the region of ÂŁ6million.
While Worcester are in administration, the company that holds player and some staff contracts – WRFC Players Ltd, a subsidiary of WRFC Trading Ltd – had been operational and was the subject of HMRC’s action.
Judge Nicholas Briggs made an order winding up WRFC Players Ltd at an Insolvency & Companies Court hearing on Wednesday.
This effectively means all players contracts have been terminated and are now free agents.
WRFC Trading Limited remains in administration, with its winding up petition suspended.
That means there's still a chance the club itself can been saved, with talks ongoing with two prospective buyers.
Following the hearing, Lead Administrator Julie Palmer of Begbies Traynor said: " We expected this would be the case today and we weren't really confident that we were going to get to a position so quickly, that we would be able to hold the playing squad together.
"It probably makes it more difficult to move forward quickly, because if somebody was intending to try and get playing again this season, rugby isn't like football.
"You can't sort of play with a makeshift squad and use some youngsters because of the physical nature of the game.
"So it probably, I would imagine, makes it really difficult for an interested party to think we could quickly get back a squad of players to compete in the Premiership this season, even if we were otherwise in a position to by moving quickly on this deal.
"It gives everybody a bit more breathing space and time to look at what is a very complex transaction in a slightly more orderly fashion than the timescales we were working to initially."
Bill Sweeney, chief executive of the RFU said: “This is a very sad day for rugby in England. Our thoughts are with all of the Worcester Warriors players, staff and supporters.
“The RFU will continue to speak to the administrators, and potential buyers, during the course of the next 24 hours to understand the possibility of a buyer taking over the club in time for the men’s team to participate in the Gallagher Premiership during season 2022/23.
“We are also liaising with the administrators in relation to discussions with potential funders, which may enable the University of Worcester Warriors women’s team to continue in the Allianz Premier 15s even if the men’s team cannot continue to participate this season.
“The RFU will continue to support community rugby in Worcester and is fully committed to ensuring local academy opportunities are provided for pathway players.”