REPORTS in the national press claim Worcester Warriors could face RFU sanctions if they do not settle debts with their creditors.
Both the Times and the BBC report that Warriors face potential sanctions from the RFU if creditors are not paid.
First reported in the Times, the newspaper claims around 20 former players, former director of rugby Steve Diamond and other staff are all owed money.
Warriors entered administration in September 2022 and return to Sixways Stadium for a pre-season friendly against Bath tonight.
However, as part of the club’s return to professional rugby, the RFU imposed certain conditions the club must meet.
This includes payment of creditors. Warriors chairman Christopher Holland confirmed the club must meet the condition when Warriors announced their return to professional rugby in April.
Worcester released a response to the original article in the Times on their website but have since deleted the post.
Speaking about the club’s return to professional rugby back in April, Holland said: “We are required to settle rugby creditors as defined by RFU Regulation 5. We acknowledge and fully own this process and the responsibility that comes with it.
“Had we opted to restart at the bottom of the rugby pyramid, the obligation to settle rugby creditors would have been removed.
“However, with the clear intent of investing and developing the future of rugby in the region, we have taken full responsibility for addressing these inherited obligations.
“We now enter a defined period in which to provide financial guarantees, and to identify, validate, and agree all inherited rugby creditors.”
RFU confirm large number of creditors paid but sanctions still possible
An RFU spokesperson has confirmed to the Observer that Warriors have already made ‘a significant number of payments to rugby creditors’.
The RFU also confirmed an independent adjudication process is taking place to review claims from unpaid creditors.
And the RFU said Worcester were offered a conditional place in Champ Rugby.
Worcester have kept the Tier 2 board updated regarding the club’s progress in paying rugby creditors and meeting other conditions.
The RFU also confirmed the club must settle with rugby creditors. A wide range of regulatory sanctions are available should the club fail to complete the process.
Sanctions include the ability to impose further conditions on the club’s participation in the league.
The RFU state ‘the process is well underway with parties working as quickly possible to resolve outstanding creditor claims’.
The RFU also confirmed ‘there are a group of player claims still outstanding’ due to a number of the playing group using the independent adjudication process for certain matters.
