Premiership club Worcester hit with HMRC winding-up petition, reports suggest
Premiership Rugby club Worcester Warriors have been hit with a winding-up petition by Her Majesty’s Revenue and Customs, according to reports.
A liquidation of the club is sought by the UK tax authority unless a debt is settled for an unpaid tax bill, the Telegraph report.
This follows reports in recent months surrounding the late payment of some player wages, though this issue is said to have been resolved.
The Premiership club, who finished 11th last year, said: “Worcester Warriors, along with many other businesses and most sports clubs have found the past two years extremely challenging owing to the Covid-19 pandemic and the rise in the cost of living.
“We retained our staff but lost income during the various lockdowns during which the overwhelming majority of matches were played behind closed doors.
“We returned to normal operations 12 months ago carrying a tax liability to HMRC. 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.
“The club owners and board are fully committed to preserving top-flight professional rugby in Worcester and have been working on solutions to secure the financial future of Worcester Warriors and to pay outstanding tax owed to HMRC.
“A solution, which would secure the long-term future of the club, has been approved. Unfortunately, there have been unavoidable delays beyond the club’s control to the final tasks required to complete the funding.
“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.
“We have also been in communication with the Department for Digital, Culture, Media and Sport, Sport England, Premiership Rugby and the RFU [Rugby Football Union] regarding this matter.”
A HMRC spokesperson told City PM: “We take a supportive approach to dealing with customers who have tax debts, working with them to find the best possible solution based on their financial circumstances.”
On their website, HMRC state that qualification to issue a winding-up order requires the company to owe £750 or more and proof that they are unable to repay the owed money.
The site goes on to say that a successful winding-up order will lead to: the sale of assets, disputes settled, owed money collected and funds are paid.
At the time of writing, Worcester Warriors (WRFC Trading Limited) have their accounts labelled as overdue.