Worcester Warriors set to lose P Share amid sale to Atlas Consortium
Troubled former Premiership rugby club Worcester Warriors are set to lose their “P Share” imminently, even if their sale is finalised next week, say administrators.
The side’s future has been in doubt since entering administration in September, and preferred bidder the Atlas consortium has been told it must complete a buyout by 2 May.
In a progress report seen by City PM administrators Begbies Traynor confirm that they expect the team to lose a key asset known as a P Share.
P Shares, estimated by Begbies to be worth £9.8m, entitle clubs to a split of the Premiership’s central income, such as private equity investment and broadcast revenue, and give them a say in key issues.
“The PRL [Premier Rugby Limited] notified us on 29 November 2022 that it intended to exercise the call option [where PRL can require a company to transfer its P Share when insolvency occurs] over the P Shares,” the progress report read.
“Our solicitors and the PRL’s solicitors are in the process of negotiating the terms of the buyback agreement [where Worcester could eventually re-buy their share]. We expect to transfer the Company’s [WRFC Trading Limited] P shares imminently.”
Elsewhere in the report Begbies Traynor confirmed the 2 May deadline reported by City PM last week while reiterating that the purchase of the club is yet to be completed.
The progress report also states that a successful Atlas consortium would not be able to dispose of the leasehold to Sixways Stadium or the “freehold interest in the land surrounding Sixways” for a period of five years.