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Worcester Warriors are facing a 35 point Premiership sanction for entering administration but the Rugby Football Union could opt to waive any action by using a “no fault” clause that includes the impact of a pandemic.
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The key wording in the RFU regulations states: “Upon an affected Club’s application the RFU may in its absolute discretion reduce or waive in its entirety any sanction…. where it is satisfied that the Insolvency Event would not have occurred but for an event or circumstance which was beyond the control and without the fault or negligence of the affected Club.”
However, to put themselves in line for help from the RFU, Worcester would have to prove they can still operate in administration which would require funds being put in by the current owners who have been silent throughout the growing crisis engulfing the club.
If, as feared by Worcester supporters, owners Colin Goldring and Jason Whittingham only put the club and stadium into administration and keep the surrounding land in another company, then raising any funds to save Warriors will be extremely difficult.
Premiership Rugby is expected to issue a statement on the Worcester situation once the club has formally entered administration while they are also monitoring the financial problems Wasps are dealing with. Wasps, like Worcester, owe HMRC unpaid tax along with the £35m they raised in a bond issue that will have to be paid back.
The RFU regulations governing insolvency state:
Fixed Sanctions
5.5.5 Subject to Regulation 5.5.8, where a Club suffers an Insolvency Event during the Season or after the end of the Season but before the playing schedules have been set for the following Season, that Club’s most senior first XV team, as determined by the RFU, shall in respect of the following Season be relegated to the League below that in which it participated at the time the Insolvency Event occurred and there shall be no right of appeal for any such Club.
5.5.6 Subject to Regulation 5.5.8, where a Club suffers an Insolvency Event after the end of the Season and after the playing schedules have been set for the following Season, that Club’s most senior first XV team, as determined by the RFU, shall in respect of the following Season incur a 35 point deduction and there shall be no right of appeal for any such Club. Where the RFU is satisfied that the Insolvency Event was unavoidable before the end of the Season and had been delayed by the Club in order to avoid relegation, it shall be entitled in its absolute discretion to impose a further points deduction against that Club’s most senior first XV team and/or relegate that team the following Season to the League below that in which it participated at the time the Insolvency Event occurred, and there shall be no right of appeal for any such Club.
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No-fault Insolvency Events
5.5.9 Upon an affected Club’s application the RFU may in its absolute discretion reduce or waive in its entirety any sanction that would otherwise apply to a Club under Regulations 5.5.5 to 5.5.8 where it is satisfied that the Insolvency Event would not have occurred but for an event or circumstance which was beyond the control and without the fault or negligence of the affected Club and which by the exercise of reasonable diligence the affected Club was unable to prevent, including (but not limited to): riot, war, invasion, act of foreign enemies, acts of terrorism, earthquakes, flood, fire or other physical natural disaster, strikes at national level or industrial disputes at a national level and any epidemic or pandemic as categorised as such by the UK Government and/or the World Health Organisation.
