Worcester Warriors takeover provokes rift between RFU and club administrators

The controversial takeover of Worcester Warriors has sparked a dispute between the RFU and the club’s administrators.

The Rugby Football Union has criticized the decision by administrators Begbies Traynor to approve the Worcester buyers before they passed the governing body’s fit and proper test.

The RFU said it was surprised that Jim O’Toole’s Atlas consortium had been able to sign an agreement to buy the club and its assets without due diligence being completed. Begbies was approached for comment.

National rugby bosses said they had understood the three bidders would have a chance to meet the fit and proper person test and were surprised when a deal was signed without being notified.

O’Toole, the club’s chief executive, submitted his offer for a second time after failing to meet the RFU’s criteria in December.

The controversial takeover of Worcester Warriors has sparked a dispute between the RFU and the club’s administrators.

The Midlands club went into administration in September and was suspended from playing

CEO Jim O’Toole’s Atlas Consortium has purchased the club and its assets without due diligence having been completed.

He told the Mail on Sunday that he was confident the problems would be sorted out this time. He added that he felt the governing body had “overreached” the conditions set out for potential buyers.

O’Toole also dismissed the suggestion that he could potentially divest the club’s assets now that his consortium owned Sixways Stadium, the ground surrounding it and the club.

The stadium and ground 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’s brand and assets will remain O’Toole’s regardless of the RFU’s decision.

“Originally Begbies indicated they would only deal with buyers who have passed our fit and proper person test,” the RFU said.

‘This changed, and Begbies informed us that they would proceed with all bidders and therefore a proper process would take place in parallel.

‘To date, the assessors acting on behalf of the Atlas consortium have not provided the conditions required to pass the test.

‘The RFU was very surprised that an agreement was signed without notice. We had understood that all three bidders would have the opportunity to progress and meet the RFU’s fit test.

“The RFU had indicated to the administrator that there was an opportunity for that to happen.”

O’Toole has dismissed the suggestion that he could potentially strip the club of assets now that his consortium owned Sixways Stadium (pictured), the land surrounding it and the club.

Key sticking points relate to O’Toole’s source of funding and that his consortium was not prepared to honor a commitment not to dispose of land around the stadium without approval.

The main sticking points are understood to have related to O’Toole’s source of funding and the fact that his consortium was not prepared to honor a commitment not to dispose of land around the stadium without approval.

“The RFU is also concerned by an earlier public statement by the bidders that they are prepared to acquire the site and develop it without a rugby bid,” the RFU said. “The RFU cannot prevent the sale of the club’s assets.”

O’Toole has until February 14 to comply with the RFU’s takeover conditions. The Wasps acquisition is working up to the same deadline after it also went into administration.

He said: ‘Not one square inch of the footprint of this land [and the stadium] it will be used for anything other than developments supporting the rugby club. Rugby is at the absolute epicenter of everything we’re doing this for.

‘We understand the position of the RFU. We feel that there your answer [to the initial bid] It involved going overboard. We are working with them now to try to solve three or four problems that will allow us to achieve the goal of playing in the Championship.