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Worcester Warriors were taken over by Atlas after ceasing to trade last year and the new owners are confirmed to have backed out of a proposal to play in the RFU Championship for the 2023/23 season.
According to PA Media
Last updated: 15/02/23 18:24
Wasps will be playing in the Championship next season but Worcester are not
Wasps have been given the nod to take part in the Championship next season but there is no delay for Worcester following a proposed rebranding as ‘Sixways Rugby’.
While Wasps have met the necessary conditions to take part in the second tier of English rugby, talks held between the new owners Worcester Atlas, the Rugby Football Union and the Department for Digital, Culture, Media & Sports failed to break the deadlock.
Atlas announced last Thursday that the RFU’s demand for inclusion in the Championship was too heavy, forcing them to pursue a merger with semi-professional Stourbridge in the hope of competing in the fourth tier.
Wasps and Worcester were placed into administration at the start of the season after being chased for unpaid tax by HM Revenue and Customs, which led to their removal from the Gallagher Premiership.
Tuesday was the deadline for the club’s application to join the Championship, but when Wasps produced a signed solvency agreement and proof of funds, the RFU noted that Worcester’s actions meant creditors would not be paid.
The governing body also has misgivings about the “transparency of ownership and funding structure” of Atlas.
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The company that holds Worcester Warriors Rugby Club player contracts has been dissolved meaning an exodus of players is likely as reported by James Cole.
“Our aim has always been to see Wasps and Worcester in the Championship and keep the club alive for our fans and the wider community we serve,” RFU chief executive Bill Sweeney said.
“While we look forward to seeing both clubs in the Championship next season, we are delighted that after many months of work from all parties involved, Wasps will have a place. We know this will be great news for everyone associated with the club .
“We would like to thank everyone involved at Wasps for their open dialogue and collaboration over the past few months.
“We remain in positive dialogue with the RFU and thank you for your continued support as we work to secure our future.
“Recent events have highlighted, more than ever, the importance of long-term sustainable investment.
“Our focus remains on stabilizing the club’s finances and getting Wasps to play in the Championship next season.”
“We appreciate the disappointment felt by Worcester Warriors staff, players and fans after Atlas’ decision will be so important.
“For clubs to continue following insolvency, it is vital that they have a sustainable and funded business plan, that there is transparency around their ownership and funding structure, and that rugby’s creditors are paid.
“The payment of rugby creditors is an integral part of our insolvency regulations and we cannot approve a takeover of a club without agreement that payment of rugby creditors will take place.
“Since Atlas withdrew from the process, we remain concerned that funds will not be sufficient to pay rugby’s creditors.
“We will continue to work with Atlas over the next few weeks to understand their vision for rugby at Sixways.
“While the RFU is the regulator of rugby union, we have worked hard to ensure that we make the best decisions for the sport.”
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