Rugby clubs have been warned after the Department of Culture, Media and Sport (DCMS) said it “wouldn’t hesitate” to use “all financial levers” available to recover loan payments owed by sports organisations from the pandemic.

Those powers could see the government department aid in forcing insolvency on sports clubs to ensure the taxpayer recoups the maximum possible sum of emergency Covid-19 loan cash.

The admission will be a stark reminder to England’s rugby union teams, who received the biggest sports loan when DCMS was scrambling to keep clubs and cultural assets alive during a period of acute financial uncertainty.

Three of the nine organisations, out of a total of 46 loan recipients, who are now insolvent are former Premiership rugby clubs. 

Pessimistic about rugby

Those speaking at the Public Accounts Committee – which assesses value for taxpayers’ money – said they were more pessimistic about rugby’s ability to repay loans now than they were when they initially handed them out.

Worcester Warriors ceased to exist after a series of financial mismanagements and are currently trying to earn a place back in the rugby pyramid.

Wasps went under with more than £100m of debt – not all owed to DCMS – and are now facing an uncertain future.

London Irish were the final of the three Premiership clubs to go with administrators in place.