The controversial takeover of Worcester Warriors has led to a dispute between the RFU and the club’s trustees.
The Rugby Football Union criticized the trustees Begbies Traynor’s decision to approve Worcester’s buyers before passing the governing body’s suitability and reliability test.
The RFU said they were surprised that Jim O’Toole’s Atlas consortium could have signed a deal to buy the club and its assets without due diligence being completed. Begbies were contacted for comment.
Domestic rugby chiefs said they understood all three bidders would be given the chance to pass the fit and proper persons test and were surprised when a deal was signed without being notified.
O’Toole, the club’s CEO, submitted his bid for a second time after failing to meet the RFU’s criteria in December.
The controversial takeover of Worcester Warriors has sparked a dispute between the RFU and the club’s trustees
The Midlands club joined the board in September and were suspended
CEO Jim O’Toole’s Atlas Consortium bought the club and its assets without due diligence
He told the Mail on Sunday he was confident the issues would be resolved this time. He added that he felt the governing body had “overestimated” itself with the conditions placed on potential buyers.
O’Toole also rejected suggestions that he could potentially rob the club now that his consortium owned Sixways Stadium, the land around it and the club.
The stadium and ground went into receivership while the club went into receivership, an important distinction as the RFU is only involved in the sale of the club.
It could decide whether Worcester play professional rugby in the Championship next season. But the club brand and its assets will remain O’Toole’s regardless of the RFU’s decision.
“Originally, Begbies stated that they would only do business with buyers who had passed our suitability test,” the RFU said.
This changed and Begbies informed us that they would proceed with all bidders and that an appropriate and proper process would be undertaken in parallel.
“To date, consultants on behalf of the Atlas consortium have not provided the required conditions to pass the test.
‘The RFU was very surprised that a deal was signed without notice. We understood that all three bidders would have the opportunity to progress and pass the RFU’s suitability and reliability test.
‘The RFU had indicated to the administrator that this was possible.’
O’Toole has rejected suggestions that he could potentially rob the club now that his consortium owns Sixways Stadium (pictured), the land around it and the club
The main sticking points relate to the source of O’Toole’s funding and the fact that his consortium was unwilling to honor a commitment not to sell land around the stadium without approval
It is clear that the main sticking points related to O’Toole’s source of funding and the fact that his consortium was unwilling to honor a commitment not to sell land around the stadium without approval.
“The RFU is also concerned about a previous public statement by the bidders that they are willing to acquire and develop the site without a rugby offer,” the RFU said. “The RFU cannot prevent a sale of the club’s assets.”
O’Toole has been given until February 14 to comply with the RFU’s takeover terms. The acquisition of Wasps is working towards the same deadline after it too has been placed under receivership.
He said: ‘Not a square inch of this country’s (and stadium’s) footprint will be used for anything other than developments in support of the rugby club. Rugby is the absolute epicenter of everything we do this for.
“We understand the position of the RFU. We felt that their response (to the initial offer) was overreaching. We are now working with them to try and work around three or four issues that will help us achieve the goal of playing in the championship.”
