Premiership: Worcester Warriors on the verge of entering administration – report

Worcester Warriors are close to entering administration after being served with a winding-up petition for unpaid tax.

The club’s financial issues have been well documented over the past few months and it was recently revealed that the players’ May wages were not paid on time.

Hit with winding-up order

The Premiership outfit received a winding-up order last week by HM Revenue and Customs (HMRC), but the Warriors stated that they were in constant communication with the tax man.

“From the outset, we have worked closely and openly with HMRC on a plan to clear these liabilities and a Time to Pay (TTP) arrangement has been in place,” the statement read.

“Having kept HMRC fully apprised of the situation we are disappointed that they have taken the decision to issue a winding-up petition. The club’s directors are in continuing dialogue with HMRC in an attempt to find a speedy and satisfactory resolution.”

But it looks like Worcester are still searching for a resolution and, according to media reports, the club have asked the Department for Digital, Culture, Media & Sport for permission to go into administration.

Despite their precarious position, the Warriors are said to be considering options that could allow them to continue to function.

Worcester’s director of rugby Steve Diamond has urged the club’s players to continue as normal before seeing what their situation would be like in the near future.

“In the current economic climate it is not as if there is a knight on a white horse going to ride into town on Monday morning,” he told the Sunday Times.

“The owners are attempting to find a solution with HMRC [over unpaid tax] and they have kept me in the loop and I have done the same with the players and staff. I have asked the players to keep knuckling down and we will see where we are in ten days.

“Any solution that can be put in place won’t happen overnight and our payroll isn’t for another 10 days.”

Tarnished legacy

England centre Ollie Lawrence was the first Worcester player to go public, stating that the legacy of former owner Cecil Duckworth risks being “tarnished.”

Duckworth, who passed away in November 2020, built the club from practically nothing, with his financial backing helping to establish the Warriors as a Premiership side.

The reins were handed over to current co-owners Jason Whittingham and Colin Goldring in 2018, who are also directors at English football club Morecambe.

Lawrence wrote on Twitter: “Before anyone decides to state/complain that I’m slating the reputation of the people that pay our wages… I’m really not! They invested in the club & tried to ‘create change’ so can’t fault that.

“But Cecil Duckworth created a legacy for this club, and that is close to being tarnished currently. There just comes a point where people’s careers/livelihoods/families are being affected, which I believe that should be answered for.

“I have nothing but respect for the whole players and staff for continuing to pitch up everyday with all this uncertainty.

“The rumour mill will continue, but it’s above us now as to what happens, but for now we’ll crack on as a team and wait to see what unfolds.”

Vague statement

The Worcester owners did finally release a statement later on Monday, but it revealed little and only added to the concerns of the supporters.

“There has been much speculation and rumour circulating in the media and among our supporters about the future of Worcester Warriors,” it read.

“Over the past week a lot of work has been done away from the media spotlight to try to navigate the club through the challenges that we currently face.

“That work continues, discussions are ongoing and we are reviewing the options available to the club.

“We continue to work closely with HMRC, Premiership Rugby, the RFU and DCMS to find the best solution to the situation. We are very grateful for the support these organisations have shown to the club.

“We are now working through a number of options with our advisors. These include solutions for keeping rugby at Sixways and we will communicate further as soon as a decision has been finalised.

“We are grateful to our staff, supporters, partners, sponsors and suppliers for their commitment, loyalty and support during what has been a difficult period for all involved in the club.

“We also greatly appreciate the messages of concern and support that we have received from across the rugby world and the wider sporting community.”

READ MORE: Premiership: Worcester Warriors issued winding-up petition by HMRC over unpaid tax