English club rugby faced up to its worst nightmare last night as two of its top clubs teetered on the brink of financial collapse.
Debt-crippled midlands duo Wasps and Worcester face going into administration - and being relegated from the Premiership.
Hours after the Rugby Football Union warned Warriors they face suspension from all competitions this Monday, Wasps filed notice in the High Court of their intention to appoint an administrator.
The two-time European champions have been unable to meet the deadline to pay back £35 million in bonds which helped to finance their relocation to Coventry in 2014.
RFU regulations state that a team that goes into administration is liable for automatic relegation unless it can demonstrate that the financial crisis was not its fault.
Club rugby was on its knees even before the coronavirus shutdown and a £59 million rescue package for the Premiership from the government only delayed this day of reckoning.
The RFU finally lost patience with Worcester’s owners and their false promises yesterday.
“Whilst we appreciate that this will be unwelcome news, it is clear that the current state of affairs cannot continue,” said the Union.
Warriors scraped together just enough money to cover costs for last night’s 49-21 Premiership Cup defeat at Gloucester - dragging two players out of retirement to fulfil the fixture.
But with £25 million of debt, a winding up petition due to come into force on October 5 and insurance cover only in place until midnight on Monday, owners Jason Whittingham and Colin Goldring have been told to put up or shut up.
An ultimatum has been issued that Worcester will be suspended from all competitions - men and women - if the club cannot meet three demands.
They must provide evidence of insurance cover in place, availability of funds to meet the monthly payroll and a credible plan to take the club forward.
The plug could be pulled as soon as noon today if the relevant safeguards for Saturday’s Premiership game at home to Newcastle are not seen to be in place.
The RFU said: “The safety and welfare of the Club’s players and staff, as well as all other stakeholders and participating clubs, must remain paramount.
“We therefore trust that you will appreciate the seriousness of this matter and the need to engage with us fully and openly in relation to the assurances requested above.”
