Quantcast

Missed us? Buy TRP here!

Subscribers login | Free sample

Newsletter

Get our weekly Rugby email

RFU ratify Yorkshire Carnegie’s CVA process, meaning no points deduction

Yorkshire Carnegie can turn their attention to the new Championship campaign after the RFU confirmed the club would not be the subject of a 28-point deduction.

After a season wrecked by financial uncertainty, with over £500,000 believed to be owed to various parties, the CVA agreement securing 15p in the pound for creditors was set a deadline of August 9 (today) to be completed.

Releasing a statement, the RFU confirmed the Championship club had supplied them with the necessary information to make clear that all outstanding debt to creditors had been paid.

“The insolvency practitioners supervising the Company Voluntary Agreement (CVA) entered into by Yorkshire Carnegie have provided confirmation to the RFU that 100% of the club’s creditors have either agreed to the terms of the CVA or been paid in full by third parties.

“This information was received by the deadline of 9 August 2019, so as per RFU regulation 5.3 the RFU confirms that the club will not be subject to a deduction of 28 points for the 2019-20 Greene King IPA Championship season.”

The relationship between playing staff and the board soured towards the end of the season, with Carnegie drafting in a number of players from New Zealand in order to launch a promotion bid.

And the sustenance of the bid didn’t last as by the end of the season director of rugby Chris Stirling would leave to join Cornish Pirates, as playing squad sought moves elsewhere or moved back to New Zealand.

Moving on after managing to steer themselves through murky waters, Carnegie have installed Martyn Wood as director of rugby and acquired Leicester Tigers fly-half Joe Ford as their first signing last week.

Relegated Richmond have been a fierce objector to Carnegie being able to remain in the Championship, saying in late July they would seek to have the RFU review their process in holding Carnegie to account.

“The reality is that Yorkshire Carnegie stand to suffer no sanction whatsoever as any potential points deduction is to all intents and purposes illusory. It arises only if a creditor refuses to sign up to their CVA and all have signed up already.

“Accordingly, it would appear that despite their dire financial position and the cancellation of contracts of players drafted in to rescue them from likely relegation, Yorkshire Carnegie remain a Championship Club.

“Peter Moore, a director of Richmond, said: ‘It cannot be in the best long-term interests of the Game that Clubs can run up debts of over £6m and cancel players’ contracts. We are very disappointed with the RFU decision, which we will ask to be reviewed.'”

This article was brought to you by The Rugby Paper, the UK's best-selling rugby publication, on-sale every Sunday.
To subscribe to The Rugby Paper CLICK HERE

Tagged

Related Posts

Comments are closed on this article.

Have Your Say!

[snack_ad id="6539107" type="1by1"]