So Worcester Warriors have gone into administration. Players have had their contracts terminated and all non-playing staff too. What’s gone on there? Or are they just the first of many loss making clubs and is the whole thing unsustainable?
I don't follow rugby union but was reading about the owners and their behaviour sounds proper dodgy.
The club used to be run as one company, which owned all the club's assets. What these two have done is created a series of new companies and systematically transferred the club's assets into these companies. So the ground/car park/training base/etc.
Left most of the liabilities sat in the original company, which is where the players and other staff were employed by and which is essentially the playing entity. It's this company that has been put into insolvency, owing millions.
The two shysters who own it and have run it into the ground still own the companies that own the assets.
Creditors of the original and now insolvent company - the biggest of which is us taxpayers - won't get a penny as the insolvent company no longer has any assets.
Any prospective buyers of the club would only essentially buy the club name and RFU licence. They'd have to buy the ground, car park, training facilities, etc (or lease) from the shitbags who still own them.
This kind of practice should be illegal, but the authorities would rather target someone diddling a few hundred quid in benefits.
