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An interesting expression

Further to last week's good news blogpost, we have seen and heard both Worcester Warriors and WWST make the papers and local radio news over the past few days. The club even had a brief mention on BBC Midlands Today thanks to the following statement issued by owner Chris Holland on Monday afternoon:


“Worcester Warriors can confirm that we have received the formal invitation from the RFU to submit our expression of interest to return to the second tier of the professional game in England. The deadline for submission is Sunday, October 13. The Warriors will be submitting their expression of interest next week.”


Before we discuss further the tendering process to which Warriors have been invited it is worth clarifying how the constituent members of the new Tier 2 league will be chosen:


Who will be competing in the Tier 2 League in 2025/26 season?


The existing 12 Championship clubs must validate and evidence their ability to

meet the ‘Essential’ Minimum Operating Standards, and other matters, in order to participate

in the new Tier 2 league (more on this later). There will be no relegation from the Championship in 2024/25.


At the end of the 2024/25 season, the winner of National League One will be promoted to the

Championship provided that any National League One club wishing to be promoted to the Championship:

  • complies with the requirements of Regulations 2.3 and 2.4;

  • satisfies the RFU, in such manner as the RFU may from time to time reasonably require, that it will be able to fulfil its obligations under these regulations;

  • meets to the satisfaction of the Tier 2 Board, the Tier 2 MOS for entry to the Championship in Season 2025/26 as set out and communicated by the T2B.


The Tier 2 Board, ratified by the RFU Council, have approved the following, regarding the Tier 2 league, from 2025/26:


  • The size of the T2 league has been modelled to start with between 12-14 clubs with

    the intention for this to expand over time if and when it is beneficial to do so.

  • Additional clubs wishing to be involved in the Tier 2 league from 2025/26 will be

    required to tender.

  • A panel will make recommendations to the Tier 2 Board for final ratification by the

    RFU Board for those additional clubs selected for entry into the league in 2025/26.

  • The league is subject to promotion and relegation on an annual basis.

  • Additional clubs entering the league in 2025/26 will be subject to the conditions of the Participation Agreement, the RFU Rules and Regulations and compliance with the Minimum Operating Standards, the commercial growth strategy and other agreements as notified by the RFU.


Who will be participating in the tendering process as described above?


As far as I am aware, Worcester Warriors is the only club to publicly declare their intention to submit the RFU's EOI form. However Conor O'Shea's invitation letter was sent to all Universities Colleges and RFU Member Clubs. The EOI form itself is a simple proforma which will take a matter of minutes to complete but little has been reported about the next steps so you may find it helpful to read the following excerpt from Mr O'Shea's missive:


"All clubs, universities and colleges who submit an Expression of Interest will then receive a

full Request for Proposal (RFP) to apply for a place in the league. This will be sent by email

on Tuesday 15th October with a response to the request for proposals due no later than by

5pm on Tuesday 12th November 2024. The adjudication of tenders will take place in

November and we will aim to notify successful teams in December (see foot-note)*.

The submission of an Expression of Interest is without prejudice, and in no way constitutes

an obligation, either on the club, university or college to pursue a place in the league, or to

enter into an agreement with the RFU; or on the RFU to develop the RFP process or to enter

into an agreement with any club, university or college."


Applications will be judged according to the following criteria:


  • Player Base: 45 registered adult players; 30 players of Tier 2 1st XV standard; additional 15 dual-registered players; EQP requirements will apply (to be established.)

  • Minimum Operating Standards Framework: ability to meet MOS demonstrated through self-assessment process. Applicant club must meet all Essential Criteria for Year 1 (2025/26).

  • Financial Viability: Assessed against the financial elements of the MOS.

  • League Central Objectives: ability to align with the league's growth strategy assessed against 3 areas: Competitiveness, Commerce and Geography.

  • Applications from outside the RFU structure: ability to comply with RFU entry standards; provisions relating to Regulation 5 (insolvency) will be considered, in particular relating to rugby creditors.


Inevitably the proposal documentation will be hugely complex and must be completed by 12th November. Short-listed applicants are to be invited for interview and to present their plans during the week commencing 18th November.


Perhaps the two most interesting issues from a Warriors' perspective are the Minimum Operating Standards and the provisions relating to insolvency.


Draft Tier 2 League Essential Minimum Operating Standards for 2025/26


These are lengthy and perhaps onerous for clubs not used to jumping through governing body hoops. They can be found in full here but some of the more notable standards can be found below:


  • Financial Stability: The Club must provide evidence of its ability to trade for the 2025/26 season including: a) A fully costed business plan; (b) Budget and cash flow forecasts for Season 2025/26 (c) Annual management accounts showing income and expenditure for the previous Season; (d) Current Club assets and liabilities; (e) Financial Projections / Budget for the current season (2023-24) demonstrating all costs associated with the Club; (f) Details of any Club loans and repayment dates; (g) Such other financial information as the Club believes is relevant; and (h) Such other financial information as the RFU may reasonably request.

  • Financial Planning: The Club must provide a completed RFU Financial Questionnaire in a form stipulated by the RFU to include (a) Summary of trading history over the past three years; (b) Proposals for funding losses/shortfalls; and (c) Processes in place to identify and manage financial risk.

  • Capacity: The minimum Total Licensed Capacity requirements for a Club’s Principal Home Ground are as follows:

    2,000 A minimum of 200 seats; A minimum of 500 covered places (including seated).

  • Facilities: The Club shall ensure and must provide evidence that its Principal Home Ground is equipped with sufficient provision of the following by reference to the Club’s match day demographic: public toilets; accessibility modifications; refreshment provision; control room; scoreboards; public address system; media facilities; first-aid room.


Insolvency provisions


Another hugely complex area which would be impossible to cover in any detail here. Suffice to say there are numerous regulations that will be applied to Phoenix Entities. For those wishing to investigate further, a more succinct version of the relevant aspects of Regulation 5's insolvency section can be found in Appendix One of Regulation 5.


Perhaps the most controversial of the stipulations applicable to Phoenix clubs is the necessity to satisfy the RFU that "Rugby Creditors" have been appropriately remunerated. The essence of this requirement is as follows:


  • The Phoenix Entity must pay all outstanding Primary Rugby Creditors monies owed up to the date on which the Insolvency Event occurred, net of the amount that such Primary Rugby Creditors are entitled to (for example if receiving a payment from the Redundancy Payments Office) within 28 days of being granted a licence to play in one of the RFU’s Leagues.

  • The Phoenix Entity must pay, reach agreement to settle and/or reach agreement to  defer any sums owing up to the date on which the Insolvency Event occurred in full or in part  (in all such cases providing evidence to the RFU of such agreement in each individual case) all Secondary Rugby Creditors within 28 days of being granted a license to play in one  of the RFU's Leagues.


where:


  • Primary Rugby Creditors” means players, ex-players, coaches, medics, physiotherapists, strength and conditioning coaches and any other worker of a Club who are on the payroll of the Club at the time an Insolvency Event occurs.

  • Secondary Rugby Creditors” means ex-players, any other employee or worker of a Club who is not on the payroll of the Club at the time the Insolvency event occurs, referees, Registered Agents, other rugby clubs or rugby bodies in England or elsewhere, the RFU and any RFU subsidiary or associated undertaking, any Constituent Body and any other person or entity paid directly and exclusively by the Club and who directly supports the ability of that Club to play rugby. For the purposes of this definition, any shareholder with a holding of 10% or more of the Club, or any Director shall not be treated as a Primary Rugby Creditor or a Secondary Rugby Creditor.


How many places will be available in Tier 2 for clubs applying via the tendering process?


The 12 Championship teams (or 11 teams + the one team relegated from the Premiership) + the winners of National One, are guaranteed places in Tier 2, provided they wish to participate and can meet the relevant standards. The league is expected to consist of 14 teams in 2025/26 meaning that only one place will definitely be filled by a tendering club. It is expected however that the league could expand to 16 teams in subsequent seasons.

Moreover, the conditions set for entry criteria are such that some current Championship and National One clubs may fall short, leaving additional places available.


What next?


Doubtless work will be ongoing at Sixways over the next 6 weeks to ensure that Worcester Warriors are at the forefront of the minds of the Selection Panel and Tier 2 Board once they are in a position to decide on the make-up of the new Tier 2 league for 2025/26. This correspondent will be walking around with fingers crossed for the foreseeable future.


*Later in the explanatory section of the letter it also states "The Tier 2 Board will make a final recommendation to RFU Board which will approve the final number and composition of teams for Tier 2 2025/26 season in January 2025." This appears contradictory.


 

WWST Events


Coventry RFC v Chinnor RFC 12/10/24


Just a reminder that we still have places available for our trip to the Butts Park Arena next Saturday afternoon. It's early days in the new season but after 3 matches we will be watching 1st v 2nd in the English Championship. Coventry have looked exceptional thus far with 3 big bonus point wins, looking particularly impressive at home against big rivals Bedford last weekend. Chinnor on the other hand have been the surprise package of the season so far (or perhaps not such a surprise given they have ex-Warrior's coach Nick Easter as their DOR.) They have made a nonsense of the despicable decision to exclude them from the Premiership Cup with excellent wins against Cambridge and Caldy and a narrow defeat to Ampthill's Saracens 3rd XV.


Book your place on the coach for a great away-day here. Adult members only £37 including match-day seated tickets with concession for Seniors and Children.


AGM - date for your diary


WWST will be holding our first Annual General Meeting in the Sixways Suite at Sixways Stadium on the evening of Thursday January 16th 2025. Further information including details of our Special Guests will be announced nearer the time. It will be a subscribed-members only event and not one you will wish to miss.



Credit and © Worcester Raiders FC

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