Worcester enter administration after RFU suspends club amid financial issues

Premiership club Worcester Warriors went into administration on Monday (Sep 26) after being suspended by the Rugby Football Union (RFU) from all competitions after failing to meet a deadline to prove they could operate amid their financial difficulties.

Worcester are looking for new owners after they were served in August with a winding-up order over unpaid tax, reportedly totalling more than £6 million (US$6.41 million).

The English club also owe the Department for Digital, Culture, Media & Sport (DCMS) £14 million after taking out a long-term loan during the coronavirus pandemic but failing to secure new investment.

"In order to give the club the best possible chance of survival, and to protect a significant taxpayer investment, we have today agreed to the directors' request to place the club into administration," a DCMS spokesperson said.

"We will now apply to the court to appoint administrators and will begin work to explore all possible options to protect creditors and preserve the local rugby offering in Worcester."

RFU regulations state that a club placed in administration during the season will be relegated for the following campaign.

Worcester won the Premiership Rugby Cup last season but had to call upon former players to come out of retirement to help them in their title defence when they faced Gloucester in the group stage last week, losing 49-21.

"The owners of Worcester Warriors have not met the RFU's 5pm deadline to evidence insurance cover, availability of funds to meet the monthly payroll, and a credible plan to take the club forward," the RFU said in a statement.

"The RFU has therefore suspended Worcester Warriors from all competitions, including the Gallagher Premiership, Allianz Premier 15s, U18s Academy Cup