Worcester hit by £8m losses for last season
WORCESTER Warriors have declined to comment over losses of £8.1m for season 2016-17 amid off-field upheaval that has seen a number of key staff leave the club.
With takeover talks ongoing after the club was put up for sale last September, the latest accounts show that while turnover rose by £1m to £10.8m, a soaring wage bill means the club remains heavily reliant on its existing shareholders, including owner Greg Allen.
Wages outstripped turnover, rising 15 per cent from £9.6m to £11.1m, forming part of overall administration expenses totalling £16.4m – up from £14.3m in 2015-16. Interest payments, expenses, cost of sales and an asset write-off made up the £8.1m shortfall.
In his accounts statement, managing director Gus Mackay said: “The club continues to be reliant on its shareholders for its financial support and although the club is currently being offered as an investment opportunity, the shareholders remain committed to its future.”
However, such are the levels of uncertainty within the club over its future that a number of senior Sixways personnel have elected to seek employment elsewhere.
The Rugby Paper under-
stands Worcester’s financial director, operations manager, head of marketing, head of hospitality and their conference sales manager have all either left the club or are in the process of serving out periods of notice.
Meanwhile, TRP understands the club is moving closer to agreeing a takeover deal with one interested party, although the finer details are yet to be resolved. The new owners must transform a club that has become a metaphor for instability.
Since sacking then-director of rugby Richard Hill in April 2013 with the club safe from relegation, Warriors have been through five head honchos.
Dean Ryan took over from Hill promising a fiveyear plan and, after relegation in 2013/14, was followed by immediate promotion from the Championship, seven wins and a tenth place top-flight finish in 2015-16 hinted at a brighter future.
However, Ryan’s abrupt departure for the RFU in the summer of 2016 kyboshed that and the appointment of Carl Hogg and Nick Johnston as jointhead honchos failed miserably, with Gary Gold taking temporary charge in February 2017.
Bristol’s inadequacies enabled Worcester to survive and Gold stayed on in tandem with Hogg and consultant Edward Griffiths.
However, Griffiths’ bid to buy the club last September was rebuffed and the former Saracens CEO left immediately.
Widely travelled Alan Solomons arrived as a consultant in October, and was then appointed director of rugby in December after Gold quit to coach the USA.
Next season fellow South African Rory Duncan will take over as head coach, while Hogg is moving on and backs coach Sam Vesty will join Northampton.