MPs question rugby chiefs on Worcester Warriors and Wasps financial collapse
MPs quiz English rugby’s governing bodies on how Worcester Warriors and Wasps were allowed to financially collapse.
Worcester’s debts totalled over £25 million, including at least £6 million in unpaid tax, while the Wasps Group was over £100 million in debt before the club was placed into administration.
The Committee is likely to ask whether more financial oversight is needed to prevent financial mismanagement and rising debts (the RFU’s cumulative losses since 2012 have been £73 million). Witnesses may be asked whether English rugby should adopt the more transparent model used by the French leagues.
The RFU’s regulation of ownership may be considered. At the time of its collapse, Worcester was partially owned by Colin Goldring, who was previously sanctioned by the Solicitors Regulation Authority.
MPs may also examine the likelihood of Wasps and Worcester returning to the Premiership and whether the clubs will retain their “P” shares in the league.