It’s safe to say that September wasn’t a great month for English rugby, especially for two clubs: Wasps and the Worcester Warriors. Unfortunately, these two teams have had major financial difficulties, with one in administration and the other teetering on the edge of collapse in echoes of London Welsh.
This news has many of us worried about the state of Premiership rugby. After all, with two big clubs dealing with mounting debts, could others follow in their footsteps?
What happened to Wasps?
Rewind back to the early noughties and there was a fair bit of buzz about Wasps Rugby. This was their most successful decade, with the team winning the Premiership in 2003, 2004, 2005 and 2008, and the European Rugby Champions Cup in 2004 and 2007. But fast-forward to 2022 and it’s a very different story.
On Wednesday 21 September, the BBC reported that Wasps would be appointing administrators. With debts totalling £35 million, the club said that the decision had been made “due to the impending threat of action from HMRC” and to “protect the club’s best interests.” The statement read:
“This measure does not mean the business is in administration but provides a crucial period of grace to continue negotiations with a number of interested parties to secure the long-term future of the group…
“In the meantime, the day-to-day operations of the business are unaffected, and we will continue to support our players, staff, supporters, bond holders and suppliers, and keep them fully updated during what we appreciate will be an unsettling time.”
According to the Telegraph, Wasps’ players weren’t told about the decision and many actually – and unfortunately – found out about the move through social media.
A similar fate for Worcester Warriors?
If things look bad for Wasps, then it’s nothing compared to the Warriors. While the team defeated the Newcastle Falcons 39-5 in their latest match, it seems this could be their last game.
As reported by RugbyPass, Worcester was suspended from all competitions and placed into administration on Monday 26 September. Why? Because with debts of more than £25 million, the club had missed their deadline to provide proof of payroll funds, insurance cover and a “credible plan to take the club forward”.
But now, Worcester’s players have been left in a precarious situation, as their contracts are with a separate organisation: the Rugby Players’ Association.
“Our members are currently in a position where WRFC Players Ltd, the company holding their contracts, is not in administration, whilst WRFC Trading Ltd (in administration) has entered the administration process.
“This situation leaves the players in a no-win scenario, with payday looming, the club suspended from competition, a winding up petition due to be heard next week and no ability to terminate their contract if they wish to pursue opportunities elsewhere.”
Bad news for Premiership Rugby?
Worcester were due to face Gloucester on Saturday 30 September and of course, the match was cancelled. A BBC article claimed that the cancellation could cause long-term financial issues for Gloucester, as the club lost out on £400,000 in match-related revenue.
Of course, all of this has sparked worries about the rest of the Premiership and the stability of English rugby. Is it the pandemic? The cost of top players? Or a problem with the entire structure? Only time will tell how the league fares going forward, but it seems like there’s a lot of work to do.
