Desperate Yorkshire Carnegie propose CVA to save the club

FINANCIALLY-CRIPPLED Yorkshire Carnegie have proposed a Company Voluntary Agreement and must now hope creditors agree in order for the club to survive.

Wednesday, 12th June 2019, 10:15 am
Updated Wednesday, 12th June 2019, 11:15 am
Yorkshire Carnegie in action last season.

They have been in turmoil for months since a significant shareholder unexpectedly pulled the plug on planned spending.That left the Championship club - who had until recently still held hopes of returning to the Premiership - in a mess and they said they would instead operate as a part-time operation in 2019-20.However, although the majority of the squad have left this summer given they were out of contract, nine players do remain under contract for next term.All nine of them must agree a severance deal for things to move forward but some have not accepted the compromise and the club’s hierarchy have also failed in their bid to find new investors.A statement read: “Leeds RUFC Ltd, trading as Yorkshire Carnegie, have today proposed a Company Voluntary Agreement with its creditors and Begbies Traynor in Leeds have been appointed to act as joint nominees and supervisors.“Directors of Leeds RUFC and its holding company Yorkshire Tykes Limited, whose consortium of investors have supported the clubs since 2014, have worked hard to replace the significant loss of funding support but no new investors have been found.“The proposed CVA will be achieved following a lump sum contribution from Yorkshire Tykes Ltd which will enable a dividend to be paid to unsecured creditors.“A new operational, break even plan for the 2019-20 season has been presented to the RFU with the Yorkshire Carnegie club continuing to stage matches at Emerald Headingley Stadium and the team operating from the Leeds Rugby facilities at Kirkstall.“The Board hope creditors will continue to support the club and approve the CVA to ensure Yorkshire Carnegie continue to operate in the Championship in 2019-20 and beyond.”

Yorkshire Carnegie in action earlier this season. (PIC: TONY JOHNSON)