Worcester Warriors' demise 'stain on professional rugby'

The report warned the financial situation of Gallagher Premiership clubs is “clearly unsustainable” and has been described as a “stain on the reputation” of the Rugby Football Union and Premiership Rugby.

The Digital, Culture, Media and Sport committee said RFU chief executive Bill Sweeney and his Premiership Rugby counterpart Simon Massie-Taylor held a “very complacent belief” that plans to increase revenues and improve collaboration would solve existing financial problems amid annual losses averaging around £4 million per club.

Sweeney and Massie-Taylor appeared in front of the select committee in November.

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Bill Sweeney has been chief executive of the RFU since May 2019. (Image: Kirsty O’Connor/PA)

“At Wasps, a disastrous and ill-thought-through relocation to Coventry, and the debt incurred to fund this, crippled the club financially,” the report read.

“At Worcester Warriors, unscrupulous owners mismanaged club finances while attempting to strip the club of its assets.

"One of the most striking facets of the problems at Worcester Warriors was the lack of due diligence undertaken regarding its owners, particularly Colin Goldring.”

The committee’s conclusions and recommendations include that when the RFU publishes its next annual report, the governing body writes to the committee with “a detailed commentary of its financial position and what steps it will be taking to prevent further clubs collapsing”.

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The committee added: “The demise during the playing season of two Premiership clubs is a stain on the reputation of the RFU and PRL. It is not indicative of a healthy professional setup.

“We welcome the planned reforms to prevent similar occurrences in the future, but such alarming circumstances should not have been required for the RFU and PRL to realise the necessity of these reforms.

“The financial situation of Premiership clubs is clearly unsustainable, and we are surprised by the very complacent belief of Bill Sweeney and Simon Massie-Taylor that further growth in club revenues will solve these problems.”

A joint statement issued by the RFU and Premiership Rugby said: "Professional rugby clubs are independent, individually managed businesses.

“However, it’s clear that the pandemic and economic environment has further exposed the fragility in the professional system.

"Together, we are working hard to address these issues and create a sustainable league.

“While commercial growth will be important, there is equally a major focus on financial monitoring and management, as well as improving governance and some of the other foundational elements which are important to attract future investment in the club game.

“Plans are already in place for a financial monitoring panel where we are conducting a third-party financial review of all clubs and will aim to announce an independent chair in due course."