Swansea appoints Robson Rhodes administrators
Troubles stemming from the reorganisation of the Welsh Rugby Union have prompting Swansea rugby club to call in RSM Robson Rhodes as administrators.
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Geoff Rowley and John Whitfield, partners at Robson Rhodes were appointed administrators following a petition from the club.
The club is one of nine Premier Division clubs who, from next season, will become semi-professional and their funds from the WRU will be reduced from £1m to £500,000 as a result.
The changes come as part of the new chairman David Moffet’s restructuring plan for regional rugby, which was announced at the WRU’s EGM two weeks ago. The WRU said the Premier Division clubs should handle their own liabilities.
Swansea RFC chairman Roger Blyth said: ‘As a result, Swansea now has on-going liabilities which cannot be met – primarily in the form of player contracts.
‘With a guaranteed future income of only £50,000 from the WRU next season, we would be acting unlawfully to continue to trade in our current position.
‘From the end of this season, Swansea will have less overall income than it did 20 years ago, not only due to the vastly diminished Union funds but also with the prospect of reduced gate receipts, sponsorship, commercial revenues and European funds.
‘This is not something that could have been foreseen, changes have been made mid-season and part way through a 10-year loyalty agreement.’
Following the advice of Robson Rhodes, the company is seeking to put together a Company Voluntary Arrangement with its creditors.