Worcester Warriors’ contentious takeover provokes rift between RFU and the club’s administrators – with governing body questioning why buyers are now approved without a fit and proper persons’ test
- There is a dispute between the RFU and the administrators of Worcester Warriors
- Chief exec Jim O’Toole has bought the club without due diligence being done
- The governing body has questioned why the bid has been approved so early
Worcester Warriors’ controversial takeover has sparked a dispute between the RFU and the club’s administrators.
The Rugby Football Union criticised the administrators Begbies Traynor’s decision to approve Worcester’s buyers before they passed the ruling body’s fit and proper persons’ test.
The RFU said they were surprised that Jim O’Toole’s Atlas consortium had been able to sign a deal to purchase the club and its assets without the due diligence being completed. Begbies were approached for comment.
Domestic rugby chiefs said they had understood that all three bidders would be given the opportunity to meet the fit and proper persons’ test and were taken aback when a deal was signed without them being notified.
O’Toole, the club’s chief executive, submitted his bid for a second time after failing to meet the RFU’s criteria in December.
Worcester Warriors’ controversial takeover has sparked a dispute between the RFU and the club’s administrators
The Midlands club entered administration in September and were suspended from playing
Chief executive Jim O’Toole’s Atlas Consortium has bought the club and its assets without due diligence being completed
He told the Mail on Sunday that he was confident the problems would be cleared up this time round. He added that he felt the ruling body had ‘overreached’ themselves with the conditions laid down for prospective buyers.
O’Toole also dismissed the suggestion that he could potentially asset-strip the club now that his consortium owned Sixways Stadium, the land around it and the club.
The stadium and the land went into receivership while the club went into administration, an important distinction as the RFU is only involved in the sale of the club.
It can decide whether Worcester plays professional rugby in the Championship next season. But the club brand and its assets will remain O’Toole’s regardless of the RFU’s decision.
‘Originally, Begbies indicated they would only deal with buyers that had passed our fit and proper persons test,’ the RFU said.
‘This changed, and Begbies informed us that they would proceed with all bidders and so a fit and proper process would be undertaken in parallel.
‘To date advisers acting on behalf of the Atlas consortium have not supplied the required conditions to pass the test.
‘The RFU was very surprised that a deal was signed with no notice. We had understood that all three bidders would be given the opportunity to progress, and to meet the RFU’s fit and proper persons test.
‘The RFU had indicated to the administrator that there was the opportunity for that to happen.’
O’Toole has dismissed the suggestion that he could potentially asset-strip the club now that his consortium owned Sixways Stadium (pictured), the land around it and the club
Key sticking points relate to the source of O’Toole’s funding and that his consortium were not prepared to meet a commitment not to dispose of land around the stadium without approval
It is understood that the key sticking points related to the source of O’Toole’s funding and the fact that his consortium were not prepared to meet a commitment not to dispose of land around the stadium without approval.
‘The RFU is also concerned by a previous public statement from the bidders that they are prepared to acquire the site and develop it without a rugby offering,’ the RFU said. ‘The RFU cannot prevent a sale of the assets of the club.’
O’Toole has been given until February 14 to comply with the RFU takeover conditions. Wasps’ takeover is working to the same deadline after it too went into administration.
He said: ‘Not one square centimetre of the footprint of this land [and the stadium] will be used for anything other than developments that are in support of the rugby club. Rugby is at the absolute epicentre of everything we’re doing this for.
‘We understand the RFU’s position. We felt that there their response [to the initial bid] involved overreaching. We’re working with them now to try and get round run three or four issues that would enable us to achieve the goal of playing in the Championship.’
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