And how has the closely scrutinised business plan from the new incarnation managed to raise year on year income by such a significant level to create a solvent entity? 

More info on the Worcester takeover:

I sense revolution in in the air. Revenge is a dish best served cold. Time to bring the whole Lovely edifice down. 

tigerburnie wrote: After the way that Wasps have fleeced their fans and it seems the new owners will not be re paying them in full, I will be surprised if many will show up in Solihull to watch Brummijum Pests.

Edited by WEvans - 19 Dec 2022 at 18:49

While everyone has sympathy for the players, staff, and creditors of both the two failed clubs, there is no doubt that in both cases their financial management prior to administration crossed the line between astute conduct and Lovelyion. Actions such as not paying PAYE for their employees, transferring properties between subsidiary companies to move them outside the scope of administration, dissolving trusts put in place to ensure separation of assets from operating failures, and other si.ilar measures all occurred, and all fall outside the bounds of proper financial conduct.

Phil Upton makes some really good points about the arrogance and lack of consistency at HQ.

A Cov POV...

PS the RFU has no understanding of how to run the game  . . time for a significant change

rugbychris wrote: The RFU is desperately unfit for the modern game. It should be split in two. A focus on the pro game and a focus on the amateur game. The two are miles apart from each other and require  a totally different focus, with the professional game taking the vast majority of any day to day attention.

I advise a lawyer too, ideally someone with experience or connections to NGO, mutual societies and charities. To start with look at the structure and look at the relationships between the Primary stakeholders. This would include RFU as the governing body and the limited companies it has set up. Any information on commitments to the DCMS and Sport England should be included. Also in the PRA the new entities they created that I think look like thinly veiled liability shield/financial cutout. Clubs themselves are less important, but understanding their finances is really important, especially if charities are involved.
Fifteen years ago it looked like there was a potential breach of arising from the actions of senior officers on how they are expected to consult and act reasonably in the interests of their stakeholders.
Creating regulations for the management of the game falls to the RFU. While Wuss and Wasps are members the management committee, Board and Council should exercise judgement that is in the best interest of all stakeholders. Changing regs that have a material effect on other clubs such as those mooted around the leagues and that contravene the regulations already in place is clearly actionable.

Doing any of this though is a likely to be time consuming and expensive. This is something that protects those responsible from being held to account. A better way IMO is through the DCMS and Sport England initially. They made loans and grants that came with conditions. The quickest way to get folks to change tack is to place the spotlight on them in a determined and focused way. Put pressure on RFU Council Members to actually do their jobs - they are in effect Non- Executive Directors and they have specific duties. If they can’t understand the report and accounts, don’t understand the governance obligations they have then they need to either get help so they do understand or step down. Rugby Clubs across the land have plenty of professional people working in these areas and our representatives only have to ask for some advice and guidance from them.
Collective action and transparency is key though as is the willingness to rock the boat really hard.
The alternative is that the game continues on a trajectory that splits the whole structure of the game into pieces that’ll be easier to keep in their place will an Elite runs our game into the ground.