Worcester Warriors are set to enter administration after receiving £14 million of taxpayers money during the COVID-19 pandemic to remain afloat. The Warriors received the bumper payment after struggling to cope when playing behind closed doors in across 2020 and 2021.
The Premiership club were issued with a winding up petition last week, after owing more than £6 million to HMRC. Following the news last week, Worcester revealed in a statement that they were looking for speedy 'and satisfactory resolution'.
The statement said: "From the outset, we have worked closely and openly with HMRC on a plan to clear these liabilities and a Time to Pay (TTP) arrangement has been in place.
"Having kept HMRC fully apprised of the situation we are disappointed that they have taken the decision to issue a winding-up petition. The club’s directors are in continuing dialogue with HMRC in an attempt to find a speedy and satisfactory resolution.”
However it seems this resolution is yet to have been found, with the club reportedly asking the Department for Digital, Culture, Media & Sport for permission to go into administration. Despite their struggling position Worcester are said to be considering administrative options that could allow them to continue to operate.
Amid the chaos, the club's director of rugby Steve Diamond has called for the players to carry on as normal and 'knuckle down', before seeing where the club are in 'ten days'. He told The Sunday Times: "In the current economic climate it is not as if there is a knight on a white horse going to ride into town on Monday morning.
“The owners are attempting to find a solution with HMRC [over unpaid tax] and they have kept me in the loop and I have done the same with the players and staff. I have asked the players to keep knuckling down and we will see where we are in ten days.
"Any solution that can be put in place won’t happen overnight and our payroll isn’t for another ten days.”
