WORCESTER Warriors demise is a ‘stain on the reputation’ of the RFU and Premiership Rugby chiefs, a damning report from MPs has claimed.
The devastating collapse of the Sixways side was laid bare in a report from the influential Digital, Culture, Media and Sport select committee after a hearing in November which heard from leading figures in rugby after both Warriors and Wasps went into administration in the autumn.
Warriors were plunged into crisis at the end of September when administrators were called in to the ailing former top-flight side.
Former owners Jason Whittingham and Colin Goldring not only faced a winding-up petition from HM Revenue and Customs, who are owed more than £6million, but also debts including Covid Government loans of up to £15million.
WRFC Players Ltd, the company through which players and staff were paid, was dissolved in the High Court on October 5. Administrators Begbies Traynor are currently engaged in talks with a consortium led by former Warriors chief Jim O’Toole which could see the club revived in the Championship next season.
In a report published on Tuesday (January 17) Warriors owners were labelled ‘unscrupulous’ by MPs who allege the pair ‘mismanaged club finances while attempting to strip the club of its assests’.
Both Mr Whittingham and Mr Goldring have previously denied such claims.
The report claimed: “One of the most striking facets of the problems at Worcester Warriors was the lack of due diligence undertaken regarding its owners, particularly Colin Goldring”.
Last May, the club’s former co-owner was banned from working in the legal profession without the permission of the Solicitors Regulation Authority.
“This was seemingly not enough for the Rugby Football Union (RFU) to intervene and end Mr Goldring’s ownership of Worcester Warriors,” the DCMS committee added.
Goldring, who was a trainee solicitor at the time the incident occurred, said then he had been cleared of ‘any allegations of dishonesty or lack of integrity’.
MPs also sought to pour scorn on the late payment of players and staff salaries for four months before Warriors collapse and said players – including academy players evicted from their accommodation – deserved greater protection from the sport’s authorities.
“The financial situation of Premiership clubs us clearly unsustainable, and we are surprised by the very complacent belief of Bill Sweeney (RFU) and Simon Massie Taylor (Premiership Rugby Limited) that further growth in club revenues will solve these problems,” the report added.
In response, a joint statement from the RFU and Premiership Rugby said the pandemic and economic environment had ‘further exposed the fragility in the professional system’.
“Together, we are working hard to address these issues and create a sustainable league.” the statement said.
“Plans are already in place for a financial monitoring panel where we are conducting a third-party financial review of all clubs and will aim to announce an independent chair in due course.”
