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Worcester’s application to return to professional rugby for the 2023-24 season has been rejected by the Rugby Football Union, but Wasps can return.
Wasps have been given approval to play in the Championship, if they adhere to a number of conditions.
The RFU board had been assessing the applications from bidders aiming to take over the two stricken clubs.
Both clubs were first suspended, then removed from the Premiership in October after going into administration.
Worcester, whose debts totalled more than £30m when they went under, have been the subject of a bid from ex-Warriors chief executive Jim O’Toole and his Atlas consortium.
Atlas had accused the governing body of trying to impose “onerous operational conditions”.
In response to the RFU’s decision on Friday, Atlas issued a statement further criticising the governing body, calling for government intervention and saying it was “reviewing legal options”.
The RFU said it had “put forward a number of conditions” for the prospective buyers, including commitments not to dispose of land around Sixways and the “swift” payment of rugby creditors.
“The bidders, selected by the administrators of the insolvent WRFC Trading Limited, have informed us that they are not prepared to meet these conditions, and therefore the RFU board was unable to approve their application,” a statement continued.
“The RFU will now work with the administrator to enable alternative bids that would secure professional rugby at Sixways and to work together in a timetable to enable that to happen.”
Joint administrators Begbies Traynor said they have “offered an urgent meeting over the weekend between the RFU and Atlas Worcester Warriors to try and resolve the position”.
The RFU’s decision has triggered the renewal of the alternative main bid announced on 27 October from a consortium led by former Warriors director of rugby Steve Diamond and a previously unnamed ally, the old club’s main sponsor, local Hartlebury-based businessman Adam Hewitt.
After immediately making his continued intentions clear on Twitter on Thursday, Diamond told BBC Hereford & Worcester: “The consortium with JOT obviously got preferred status. But Adam and I dusted ourselves down and made sure our proposition was ready to go if anything happened.
“It came down to the respective valuations. Ours was slightly less than the other consortium’s. But Adam and I have a lot experience in business – and I also have my experience over the last 20 years of running rugby clubs.
“I was always working on the basis this was going to be a long haul, it was not going to be a quick fix and anybody coming in who thought that would fall over.
“Was I surprised at what’s happened? Yes and no really. The RFU has been hauled over the coals for having no, or virtually zero compliance in place, in its fit and proper persons’ process – and it has now quite rightly made it more rigorous.”
Atlas said in a statement on Thursday that if the RFU did not change its stance, it would look to conclude a deal “without the approval of the RFU and without returning elite level rugby to Worcester”.
But Diamond is still confident he can have Warriors ready for the Championship for September 2023 – and he is returning to Worcester next week to meet with others involved in consortium, including Hewitt.
RFU chief executive Bill Sweeney said: “We are prepared to extend the deadlines to explore if an alternative bidder can be found who has the continuation of rugby in Worcester central to its business plan.”
The decisions over Wasps and Worcester were taken following a due diligence process conducted by the RFU’s financial viability group, which included members of the RFU board, council and executive staff, representatives from Premiership Rugby, the Championship and National League Rugby, plus specialist insolvency experts.
How has Atlas responded?
Atlas said the RFU decision “comes as no surprise” and that it had not been offered a chance to “rectify any purported shortfalls in information”.
It added it would “continue to work with the administrators to conclude the purchase transaction as swiftly as possible” and continued: “This is in the hope that having completed this multi-million pound acquisition, which itself is evidence of financial viability, the RFU is prepared to come back to the negotiating table.”
Atlas said it had already indicated it was prepared to join talks suggested by the administrator, but nevertheless called for the Department for Digital, Culture, Media and Sport to intervene “and fully scrutinise the stance of the RFU and its process in this matter”.
“Finally, Atlas and its investors are now reviewing legal options in connection with challenging the conduct of the RFU in this process, and Atlas and its investors fully reserve their rights in this regard,” the statement added.
“This matter is not finished, and we thank those who continue to support us.”
Analysis – Have Warriors & Wasps bids been treated differently?
James Pearson, Political Reporter BBC Hereford & Worcester
The decision by the RFU will be a big blow to Warriors’ fans, who had hopes of seeing Championship rugby at Sixways next season.
Many will be angry with the RFU and argue the governing body has treated the bids for Warriors and Wasps differently, applying tougher tests to the consortium looking to buy Worcester.
That feeling will have been strengthened by a statement from the Atlas consortium on Thursday, which accused the RFU of trying to exert too much commercial control on Warriors’ future.
But it’s worth remembering the facts on the ground are different at the two clubs.
In the case of Worcester, the Sixways Stadium and the surrounding land are also at stake.
In its statement the RFU says the Atlas consortium was not prepared to commit “not to dispose of the land around the stadium, thereby securing it for the club and the local rugby community”.
In its statement on Thursday, Atlas said that, even without RFU approval, it would still look to conclude a deal with the administrator to buy Warriors.
We’ll now find out if that was a negotiating tactic, or if they will try to seal the deal without any promise of professional men’s rugby at Sixways.
Statement from the Warriors administrators
Julie Palmer, from Begbies Traynor, has been one of the joint administrators since being appointed to deal with the WRFC Trading Ltd wing of the Sixways club.
She said: “We have offered an urgent meeting over the weekend between the RFU and Atlas Worcester Warriors to try and resolve the position.
“Both parties have made it consistently clear that they remain committed to returning rugby to Worcester which extends to the women’s team.
“The joint administrators/receivers are willing to re-enter into discussions with any interested parties, although they will first need to satisfy the RFU’s takeover process, given the conditions being placed on any proposed purchase.
“We await confirmation from the RFU on the relevant timelines for them to reach this position, given the urgency of the matter.
“This must include total clarity on the rugby creditor position, given the very late notice of an additional material claim from the PRL (Premiership Rugby), which other interested parties were not aware of.
“The joint administrators’ statutory duty is to maximise the return to creditors. Therefore, any offer from interested parties must equal or exceed the offer made by Atlas Worcester Warriors.”