>
The man who led a £17.5m bid to save Worcester Worriers believes investigating possible asset stripping at the Premiership club is key to his hopes for a successful future.
And Begbies Traynor – the company appointed as the manager of the Sixways group – has promised to investigate historical transactions to understand why Worcester is in such a tough financial battle.
Current Warriors owners Colin Goldring and Jason Whittingham have led Worcester – who was suspended and suspended on Monday – to the brink of ruin.
Worcester banned from all competitions after missing RFU deadline
Former Worcester CEO Jim O’Toole leads a US-backed consortium to take over the disgraced couple.
O’Toole’s group is willing to fund the administration costs and has a long-term plan and proof of funds to give the club a more secure future.
But he admits Goldring and Whittingham’s move to split the Warriors into different legal firms is a complicating factor.
It’s WRFC Trading – the company that owns Worcester but none of the club’s assets – that has gone under administration.
Colin Goldring and Jason Whittingham’s move to split the Warriors into different legal companies is a complicating factor
“It’s up to the manager to conduct those investigations and see how the land, assets and liabilities ended up where they are,” O’Toole told Sportsmail.
“If they discover that the club and the country were inappropriately separated, they have the option to reverse those transactions.”
Julie Palmer of Begbies Traynor has been appointed Administrator of Worcester.
She told the BBC: ‘The role of the administrator is not only to act in the best interests of creditors, but also to investigate what happened in the run-up to the insolvency.
“If we find something that worries us, we have extensive powers.”
Worcester won’t play Gloucester on Saturday as scheduled after their suspension
Sportsmail revealed before Worcester entered the administration that the government had been accused by one of the club’s creditors of aiding the taking of assets from the Warriors.
A major change to Worcester’s lease with Sixways was approved by Sport England, with Goldring and Whittingham transferring ownership of the land to a new company that will retain all of the club’s matchday income, hospitality and sponsorship. Worcester’s players are in a different company than WRFC Trading.
“What’s vital now is for the trustees to figure out exactly what happened, where the money is and make sure the club’s assets, including all the land around it, can be kept together,” said Worcester MP. Robin Walker.
Worcester’s debts amount to approximately £25 million.
Jim O’Toole’s group is willing to fund the administration costs and has a long-term plan to protect the club
The club’s financial crisis first came on the radar in August when they received a liquidation request for unpaid taxes. Since then, the Warriors have struggled. They played the first three games of the new Eredivisie season, but were suspended on Monday.
The administration has prevented rugby director Steve Diamond’s players from training at their Sixways home. On Tuesday, some of them posted photos of visits to private gyms in an effort to stay fit for a possible rugby return. O’Toole believes he can save Worcester, but it must be done quickly.
‘Absolute. Surely. There is a route for us to do that,” he said. ‘The legal administration must take at least two weeks.
‘During that period we present them our vision and our financing package. We are happy to finance the administration. My gut tells me that DCMS doesn’t want to do that.
“We are willing to be that resource based on our commitment to the deal and to saving the club. In that two-week period, they have a chance to find a buyer. If it’s us, fine and we can act quickly to get everything done within those two to three weeks.”
Worcester players will be paid at the end of the month. If not, they have the right to deliver breach of contract letters and can leave for free. That is why O’Toole wants to switch quickly.
Worcester will not play against Gloucester as scheduled on Saturday after their suspension and their match with Harlequins on October 8 is also in doubt.
After that, Diamond’s team’s next game will be on October 19.
O’Toole believes the club can be rescued in time to play on that day, but any return to Premiership action could mean automatic relegation as they entered administration.
O’Toole also acknowledges that his lot will be matched by other bidders for Worcester. “We know we probably won’t be alone in this,” he said.
‘We are completely in the hands of the administrators. They will strategize with the DCMS that has appointed them as the club’s largest creditor.
“The administrator will be the most important player in this whole process because he has a legal duty to find the best outcome in court.
“We are now in great persuasion mode to convince them that we are the solution.”