Worcester told to prove funds ahead of Championship ‘franchise' offer

Telegraph

20-03-2025

A reformed Worcester Warriors must provide significant financial guarantees if they are to be offered a place in an expanded Championship next season.
Telegraph Sport understands that Worcester, who collapsed into administration when they were in the Premiership in 2022, are the frontrunners to be offered a place in the Championship when the Tier 2 board meet next week. The other place in the expanded second tier will be given to the winners of National 1 where there is a three-way fight for promotion between Richmond, Rotherham and Rosslyn Park.
Worcester are already in the process of assembling a team for next season with Matt Everard, the highly-rated former Leicester Tigers defence coach, lined up to take over as head coach. They boast the best facilities of any side outside the Premiership with the 12,000-capacity Sixways Stadium as well as having a captive fanbase in a rugby-loving city.
Should they be readmitted, they would have to settle their debts with their rugby creditors, including former coach Steve Diamond, who is now director of rugby at Newcastle Falcons.
However, the Tier 2 board are mindful of the risks of Worcester collapsing again, leaving a trail of new creditors which would also damage the credibility of the league, hence the demand for proof of funding from owner Chris Holland. They are also mindful of the controversy that will be created by parachuting a phoenix club back into the second tier whereas previous clubs who have gone into administration have had to work their way back up from the bottom of the pyramid.
'It is also about risk versus reward,' a source said. 'The pluses are that rugby creditors will be paid who would not have been paid otherwise, we are reviving a club who would not otherwise have been revived and their proposition with their fanbase and infrastructure would enhance the Championship like no other team. However, we also do not want to see them go bump again which is why we are asking for the guarantees.'
Other clubs who have made applications to join the Championship include Plymouth Albion, Birmingham Moseley and Sale RFC after the Rugby Football Union invited expressions of interest. It is understood fellow phoenix clubs Wasps and London Irish were not part of the process.
Holland, who also owns Wasps, made clear in an interview with Telegraph Sport last year that should Worcester return then they will do so on a sustainable basis. 'I won't bring a club back unless it is financially stable and the easiest way to do that is to have an enabling development plan that creates revenue and income that supports the rugby club,' Holland said.
Everard would be a huge coup
Bringing on board Everard would be a huge coup for the club despite the strange nature of his status at Leicester. Technically, Everard is still employed by the club but Telegraph Sport understands that he was asked to step away by Australian head coach Michael Cheika while he was on his way to a Premiership Cup match against Northampton on February 1.
Despite finishing eighth last season, no club conceded fewer tries than Leicester under Everard and he was highly popular among the playing group. However Cheika wanted him to employ a different defensive system and the pair did not appear to see eye to eye. His departure came as a shock to the squad and Telegraph Sport understands one senior England international complained directly to the board about his treatment. Leicester have since brought in David Kidwell, the former New Zealand rugby league player, as an assistant coach.
With Cheika departing at the end of the season, Leicester are still in a holding pattern over his replacement with Stade Français prepared to play hardball over the release of their preferred target Paul Gustard, the former England defence coach.