WRFC Trading Ltd

A consortium led by former Warriors chief executive Jim O’Toole and businessman James Sandford (“Atlas“) have submitted an improved offer to purchase Worcester Warriors, after their initial bid was rejected by the Rugby Football Union (“RFU“).

WRFC Trading Ltd, the company that owns Worcester Warriors, entered administration on 27 September 2022, having been burdened by debts totalling more than £25million, including at least £6m in unpaid tax and £14m to the Department for Digital, Culture, Media and Sport (“DCMS“).

Following their appointment, Joint Administrators Julie Palmer, Julian Pitts and Andrew Hook of Begbies Traynor commenced marketing the company’s business and assets, including approaching parties who had previously been in discussions with the company’s directors, as well as approaching individuals within the industry and local business owners who may have an interest purchasing the club.

12 parties executed NDAs and were given access to the data room. Following discussions with a number of these parties, the Joint Administrators received three offers, with the offer from Atlas being significantly higher than the others.

The Joint Administrators accepted the offer subject to contract and entered into an exclusivity agreement with Atlas on 29 October. In exchange, they received an exclusivity fee of £500,000. The exclusivity period initially expired on 30 November, but was extended for two weeks to give Atlas more time to put together their offer.

On 16 December, the RFU rejected Atlas’ application to return to professional rugby for the 2023-24 season, stating that Atlas had refused to meet certain conditions put forward by the RFU, including commitments not to dispose of land around Sixways Stadium and the swift payment of rugby creditors.

Atlas have now submitted an improved offer to take over Worcester, and are waiting to hear where they stand amidst reports that a consortium headed by ex-Warriors director of rugby Steve Diamond may have submitted a competing offer.

Meanwhile, DCMS has released a scathing report criticising the RFU, Premiership Rugby, Worcester and Wasps, stating that “inert leadership” from RFU and Premiership Rugby allowed mismanagement to collapse the two teams.

DCMS also stated that Warriors’ “unscrupulous owners mismanaged club finances while attempting to strip the club of its assets”, that they had gone more than a year without filing accounts, and had paid players late for several months.

The Joint Administrators’ proposals can be found HERE, and the DCMS report can be found HERE.

The Joint Administrators have been assisted by Bryan Cave Leighton Paisner.