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So I've been sat on this a while and I think it's time we all started talking about it as it's not getting enough coverage in the rugby media nor discussed amongst rugby people. For a some background Leeds Carnegie (formerly Leeds Tykes, formerly Headingly and Roundhay) have been involved with tier 1 and tier 2 of English rugby for the past 20 years or so. Around 5 years ago (during their longest stint in T2) Leeds Carnegie controversially renamed themselves Yorkshire Carnegie (after the county) in spite of two other teams other than themselves also residing in Yorkshire (Rotherham and Doncaster). County rugby is also still played in England albeit not having the same status as it once did.
Fast forward a few years and the deal with Carnegie University who was sponsoring them to the tune of £1million per year is due to end. Many people expected this to impact the premiership aspiring outfit significantly yet the sounds coming out the club indicated otherwise. During the previous 18-19 season, Yorkshire Carnegie (whom I shall refer to as Leedshire from hereon out) found themselves adrift at the bottom of the RFU Championship at Christmas. A new low as such. Their plan? Raid the southern hemisphere, particularly Mitre10 cup players and by retaining their place in the Championship save the half a million pounds of central funding from the RFU which all T2 clubs get (I believe the funding is £80,000 or less if they drop into T3). It worked and Richmond were relegated from the league.
Here is where things get murkier. It would not be unreasonable to suggest that Leedshire were aware of their perilous financial situation as rumours were abound before the season's end. To make a long story short (I'll put links in for deeper reading later) Leedshire are right on the brink and are unable to fulfil player contracts, both of their new season-saving recruits and long standing players, coaches and backroom staff. Basically insolvent and facing expulsion from the league. All the staff and players contracts are essentially torn up and a mass exodus ensues. Leedshire with the apparent blessing of the RFU have entered into a CVA; https://www.therugbypaper.co.uk/dom...e-facing-oblivion-after-failure-to-pay-debts/
... which has subsequently been accepted. Now there's a precedent set with London Welsh who also ended up in a similar situation but did not receive similar treatment from the RFU and so found themselves way down the bottom of the league structure in an essentially amateur format. As of today, Saturday 3rd August 2019, Leedshire has officially appointed one Director of Rugby and signed the services of Joe Ford as a player-coach for the upcoming season which starts soon - 7 weeks left to sign an entire squad and staff to compete in a largely professional T2 league. There is also the issue of a 28 points deduction if all their creditors do not agree to the CVA in 6 days time. Rumour has it that there will be no relegation from the Championship this year as the premiership is looking to expand. The 28 points deduction proposed by the RFU that would normally see a side relegated is effectively meaningless if this is true.
What about Richmond? Well they aren't happy (along with most of the clubs in T2) and released a public statement on their website in the last week; https://richmondfc.co.uk/index.php/news/1129-statement-on-behalf-of-richmond-fc
Within the past 24 hours players some have had enough and started making public the fallout from dealing with Leedshire, particularly this Twitter thread;
https://twitter.com/danieltemm3/status/1157377902079565824?s=20
In the Twitter thread players are being threatened with debt collectors as Leedshire are refusing to pay for treatment they ordered and would ordinarily pay for. Unfortunately this has taken longer to type from mobile than I'd have liked and have other commitments so will have to finish another time. With that said I would also like to quickly discuss an issue which has been overlooked in this saga by nearly all parties.
Leedshire sold their P shares in Premiership Rugby to Exeter Chiefs around 2012 if my memory serves me correctly. The valuation at the time was around £5million. This was allegedly ring-fenced off from the day-to-day operating of Leedshire. Indeed, as posted on their website;
https://www.yorkshirecarnegie.com/n...-regarding-sale-of-p-shares-to-exeter-chiefs/
What happened to this money? Surely the fans would not mind it being used to pay players? If it's gone, where did it go and when? This question has yet to be answered.
Fast forward a few years and the deal with Carnegie University who was sponsoring them to the tune of £1million per year is due to end. Many people expected this to impact the premiership aspiring outfit significantly yet the sounds coming out the club indicated otherwise. During the previous 18-19 season, Yorkshire Carnegie (whom I shall refer to as Leedshire from hereon out) found themselves adrift at the bottom of the RFU Championship at Christmas. A new low as such. Their plan? Raid the southern hemisphere, particularly Mitre10 cup players and by retaining their place in the Championship save the half a million pounds of central funding from the RFU which all T2 clubs get (I believe the funding is £80,000 or less if they drop into T3). It worked and Richmond were relegated from the league.
Here is where things get murkier. It would not be unreasonable to suggest that Leedshire were aware of their perilous financial situation as rumours were abound before the season's end. To make a long story short (I'll put links in for deeper reading later) Leedshire are right on the brink and are unable to fulfil player contracts, both of their new season-saving recruits and long standing players, coaches and backroom staff. Basically insolvent and facing expulsion from the league. All the staff and players contracts are essentially torn up and a mass exodus ensues. Leedshire with the apparent blessing of the RFU have entered into a CVA; https://www.therugbypaper.co.uk/dom...e-facing-oblivion-after-failure-to-pay-debts/
... which has subsequently been accepted. Now there's a precedent set with London Welsh who also ended up in a similar situation but did not receive similar treatment from the RFU and so found themselves way down the bottom of the league structure in an essentially amateur format. As of today, Saturday 3rd August 2019, Leedshire has officially appointed one Director of Rugby and signed the services of Joe Ford as a player-coach for the upcoming season which starts soon - 7 weeks left to sign an entire squad and staff to compete in a largely professional T2 league. There is also the issue of a 28 points deduction if all their creditors do not agree to the CVA in 6 days time. Rumour has it that there will be no relegation from the Championship this year as the premiership is looking to expand. The 28 points deduction proposed by the RFU that would normally see a side relegated is effectively meaningless if this is true.
What about Richmond? Well they aren't happy (along with most of the clubs in T2) and released a public statement on their website in the last week; https://richmondfc.co.uk/index.php/news/1129-statement-on-behalf-of-richmond-fc
Richmond are disappointed with the decision of the RFU Board that Yorkshire Carnegie can remain a Championship Club and will be seeking a review of that decision.
Richmond, as an interested party, has been in discussions with the RFU since April and were subsequently invited to make formal representations to the RFU board sub-committee considering the position. These representations were extensive. Richmond believe that Yorkshire Carnegie should be relegated from the Championship and that Richmond (who have remained financially solvent for many years) should be reinstated.
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".
Pursuant to that process Richmond will be asking for full transparency and, in particular, to see the recommendations together with the written reasons that were made by the sub-committee to the RFU Board.
Peter Moore goes on to say "Despite our extensive submissions, all that we have seen is a brief RFU statement". Richmond intend to make the application for the RFU's decision to be reviewed early next week.
Within the past 24 hours players some have had enough and started making public the fallout from dealing with Leedshire, particularly this Twitter thread;
https://twitter.com/danieltemm3/status/1157377902079565824?s=20
I find it truly unbelievable that
@carnegierugby
are able to sign a guy like
@_JoeyFord
with premiership credentials. They have players who they signed and moved their families across the country and the world who have received 15 pence to the pound on agreed contracts! We now1/2
Have players who played 30 games for the club last year who are now receiving personal medical bills from companies as the club is not willing to cover Xrays and MRIs that were undergone by players on recommendations and necessity from the clubs medical staff.
I think there is about 15 boys with letters and emails the same as these. I played 22 league games, 8 cup games and 2 pre season games and no am paying for my own X-Rays.
@theRPA
@EnglandRugby
In the Twitter thread players are being threatened with debt collectors as Leedshire are refusing to pay for treatment they ordered and would ordinarily pay for. Unfortunately this has taken longer to type from mobile than I'd have liked and have other commitments so will have to finish another time. With that said I would also like to quickly discuss an issue which has been overlooked in this saga by nearly all parties.
Leedshire sold their P shares in Premiership Rugby to Exeter Chiefs around 2012 if my memory serves me correctly. The valuation at the time was around £5million. This was allegedly ring-fenced off from the day-to-day operating of Leedshire. Indeed, as posted on their website;
all the proceeds from the sale will be ring fenced and kept until such time as we return to the top flight when the money will be used to buy back our P shares. Without the shareholding, it makes it extremely difficult to gain parity with the other teams in the Premiership and for our long term future we must retain the ability to buy back the P shares.
https://www.yorkshirecarnegie.com/n...-regarding-sale-of-p-shares-to-exeter-chiefs/
What happened to this money? Surely the fans would not mind it being used to pay players? If it's gone, where did it go and when? This question has yet to be answered.