Volkswacht Bodensee - Worcester rugby future at risk after players' contracts terminated

Players and staff will have their contracts terminated after part of the Premiership Rugby club was wound up in the High Court on Wednesday.

British tax authorities are pursuing the club for unpaid tax of about £6 million ($6.8 million).

Judge Nicholas Briggs instructed that WRFC Players Ltd, a subsidiary of WRFC Trading Ltd through which players and some staff are paid, be wound up.

A winding-up petition against WRFC Trading Ltd, which remains in administration, has been suspended.

Despite hope that a buyer can be found, the club could face automatic relegation to the Championship due to being placed in compulsory liquidation.

Worcester's matches against Gloucester and Harlequins were cancelled on Monday.

Rugby Football Union (RFU) chief executive Bill Sweeney said: "The RFU will continue to speak to the administrators, and potential buyers, during the course of the next 24 hours to understand the possibility of a buyer taking over the club in time for the men's team to participate in the Gallagher Premiership during season 2022-23."

Ted Hill, Ollie Lawrence, Fergus Lee-Warner and Valery Morozov have already joined rival Premiership club Bath on loan and others will follow them out of the door, along with members of staff.

Because they had not been paid for September, all players would have been able to leave on October 14, meaning that liquidation has brought their departure forward by nine days.

"This is the darkest day for English rugby," Diamond wrote on Twitter.

"We thought we could turn the tanker around but it's ended up like the Titanic, sadly. The ship has sunk, the captains are nowhere to be seen."

Hill tweeted: "What an unbelievably sad day for everyone in Worcester.

"A club who meant so much to everyone has gone the direction none of us wanted it to. A place where I played my rugby from 14 years of age and met so many people who mean so much to me and my family."

- 'Learn lessons' -

The Rugby Players Association called for "lessons to be learned".

"The RPA is extremely saddened to hear of the liquidation of WRFC Players Limited," a statement read.

"We stand with all Worcester employees. Our immediate thoughts are with all the players and staff who have lost their jobs today due to this terrible situation.

"We will continue to support our members in all ways that we can throughout this hugely challenging and difficult time, as we have done since it became clear that the club was in financial trouble."

There are fears that other English Premiership clubs could also face a bleak future -- the collective debts of all 13 Premiership clubs are estimated at more than £500 million.

Wasps, twice European champions, have announced their intention to appoint administrators after failing to meet a May deadline to repay £35 million in bonds, which helped finance their relocation to Midlands city Coventry from London in 2014.

O.Lorenz--BTB