Jason Whittingham and Colin Goldring leaked statement reveals extent of Worcester Warriors situation

Jason Whittingham and Colin Goldring sent a detailed statement to everyone employed by Worcester Warriors explaining the situation at the club.

In the long email, they claim HMRC issued the winding up petition for being days late on a VAT payment of £320,000.

The statement was leaked on social media and has since been widely shared.

Warriors update: so this is the letter sent out to everyone at the club by the current owners Jason Whittingham and Colin Goldring.

It’s a detailed letter where they address a lot of the issues mentioned in the past week. The first bit of real communication ⬇️ #COYW pic.twitter.com/kCyHfapwdY

— Marcello Cossali-Francis (@Mcossalifrancis) August 26, 2022

What is actually happening and why?

As per reports, the owners confirmed that a winding-up petition has been issued by HMRC.

The owners also confirmed that the amount for the VAT payment was £320,000.

The letter goes on to mention how the owners had the future funding needed for the club which the petition has "potentially prevented".

It said: "It's heartbreaking to think we had the future funding needs of the club sorted, to cover the club's cash needs until it was self-sustaining with income from the first phase of the development.

"The legal agreements were all drawn up and all parties ready to sign this month.

"This petition has potentially prevented that loan from coming through."

The letter mentions how covid had a significant effect on finances, and the decision to not make any redundancies meant the owners took on a huge debt to the HMRC.

What about the "asset stripping" allegations?

Worcester Warriors owners Jason Whittingham (left) and Colin Goldring (right) - Ryan Hiscott/JMP - 08/10/2019 - SPORT - Sixways Stadium - Worcester, England - Worcester Warriors Media Day.

The owners have said the allegations of asset stripping are "completely false" and everything that they have been doing since the lockdown has been to make the club more sustainable.

Rumours surrounding the stadium and surrounding land being taken out of the blub were also strongly denied.

They said: "The separation of the club from Sixways Stadium surrounding land into two different companies was done as part of the purchase of the club from the previous owners over four years ago now.

"It's absolutely not true the stadium and land were recently taken out of the club.

The changes in land parcels including the sale of pitches over the canal and mortgage on the land we're supposedly stripping away, which Jason and I personally guarantee went into paying your wages last month and the month before when we had a delay on long-term funding."

Is the club going into administration and could the club be sold?

Sixways Stadium.

The owners denied all reports that they will be going into administration, stating that there are still viable options to pursue.

They said: "If that situation changes and we decide the club should go into administration then we will inform you all immediately, however, we are working hard to avoid this if we can - as stated in previous communications."

When discussing the losses the club has been suffering since lockdown, the owners did mention that they would be open to selling the club.

They said: "It's not true that any of the group's structuring is for our own gain, everything done post covid was done under close scrutiny and the separation of the stadium from the development land as part of the Covid loans was in part to protect it and ensure we could do something to stop the huge losses the club has been suffering since lockdown, almost £400,000 a month.

"If a buyer offered to fund and continue the club only if we sold the whole site then we would."

Why has there been a lack of communication?

The owners started their letter by apologising for the lack of communication, stating the reason as "early starts and late finsfinishesihes".

They said: "We are sorry this is the first time you're hearing from us directly in a while, it's been early started and late finishes every day identifying, assessing and then moving forward with the best options available.

"The club's situation is fast-moving and intensive but we are always thinking of you and aware that you, as well as supporters and the local community, will want to know everything that is going on."

The letter went on to say: "We don't blame anyone for drawing the wrong conclusions before now because we have not communicated well enough or shared all the information for everyone to better understand the situation and transactions post covid required to keep the club going and continue paying salaries."

The owners have also pledged to improve communications with the Warriors supporters groups going forward.

What about the jobs of staff and players?

The owners have not been able to make any assurances for the future of the players or staff of the club.

The letter said how the owners are "still fighting" to support everyone employed by the club.
It said: "We are still fighting to support the club and its staff, you are our number one priority through this all and we are genuinely doing everything we can.

"We can't guarantee the outcome yet but we can guarantee we will have done everything possible to save this club and your livelihoods."

What about the Park and Ride car park?

A lot of interest has surrounded the car park at Sixways Stadium, which the owners called a "favourite conspiracy theory".

The owners said: "On the freehold transfer of the Park and Ride car park specifically, which seems a favourite conspiracy theory, this relates to the middle section of the car park only.

"This freehold is not like the rest of our land, because the rights to use it were sold to the Council as a park and ride lease by Cecil many years ago.

"We had to put a valuation on this freehold with no rights to use the land for the purposes of Stamp Duty on the transfer of this freehold which was estimated at £50,000, this was a transfer within the group and it wasn't sold to anyone as the reports suggest."

Is Cecil Duckworth's Legacy being considered?

Cecil Duckworth. Credit: Richard Eaton

Despite the criticism from many fans about the situation and the effect it will have on the work Cecil Duckworth CBE did during his time as owner, the owners said they are still trying to protect his legacy.

They said: "We are working non-stop to save the club and to protect Cecil's legacy which is personal to us because of our personal relationship with Cecil.

"Our vision, mission and objectives to that end still hold firm.