Lawrence Dallaglio is facing fresh scrutiny after new court documents reportedly accused the former England rugby captain of continuing to spend heavily while bankrupt. The allegations, reported by The Telegraph, claim that Dallaglio spent large amounts of money on clothing, travel, groceries and alcohol while failing to set aside funds for debts, tax payments and a divorce settlement. These claims have emerged during an ongoing bankruptcy case that began after the rugby star's financial troubles following his divorce from Alice Dallaglio.
Bankruptcy Case Details
The 2003 Rugby World Cup winner was declared bankrupt in May 2025, one day after the sale of the family home he shared with his former wife. The property was sold for £2.4 million after initially being listed for £3.3 million. Dallaglio was then ordered to hand over his share of the proceeds to help repay an overdrawn directors' loan worth more than £366,500. While bankruptcy restrictions in England and Wales usually end after 12 months, a judge extended Dallaglio's restrictions by three months in May. They are now due to remain in place until August 7.
Allegations of Spending and Non-Cooperation
According to documents obtained by The Telegraph, trustees overseeing Dallaglio's bankruptcy alleged that he earned around £200,000 between August 2025 and January 2026 but spent all of it. The report stated that monthly spending allegedly included around £1,000 on clothing and footwear, £1,000 on travel and transport, £800 on groceries and £500 on alcohol. Trustee Nick Parsk also claimed there was evidence of an undisclosed bank account and described Dallaglio as 'largely uncooperative' during the bankruptcy process. Court filings further alleged that information about his income and spending was provided 'sporadically and unclearly' as well as 'late and incompletely.'
The application stated: 'Mr Dallaglio's spending habits mean that there is currently nothing left over to go towards the claims against his bankruptcy estate. There are no signs of Mr Dallaglio voluntarily reducing his spending – see the figures supplied earlier this year, where expected income decreased but intended expenditure did not. Furthermore, it was only at this time that it came to the applicant's attention that all earnings in the period 01.08.25 to 31.01.26 have been spent without savings for tax.'
Dallaglio's Response
Dallaglio strongly rejected those allegations. In his witness statement, he said he had 'made significant efforts' to work with trustees and had 'never sought to frustrate or evade' the bankruptcy process. He also denied concealing assets. The former Wasps star explained that his involvement was affected by caring for his father before his death late last year. Dallaglio added that he had 'effectively handed over my entire inheritance to the bankruptcy estate.' His lawyer, Sanjeev Punj of SP Legal Solutions, told Telegraph Sport: 'The trustee's skeleton argument contains a number of allegations which are strongly disputed by Mr Dallaglio and not accepted.'
Additional Debts
Separate documents published in December also showed Dallaglio owed another £423,570 in overdrawn directors' loans linked to his failed company, Lawrence Dallaglio Ltd, along with more than £60,000 owed to liquidators.
