The Rugby Football Union has been given assurances London Irish will meet this month’s payroll but would still have to approve a potential takeover by US investors amid fears the Exiles could be the next Premiership club plunged into financial crisis.
The London Irish owner Mick Crossan has been seeking fresh investment all season and while a US consortium is said to be close to reaching an agreement, fears have been raised that players and staff would not be paid this month. Irish released a statement insisting that was not the case on Wednesday and the RFU is confident March’s payroll will be met by Friday.
The Exiles have mounting debts in excess of £30m, however, and time is of the essence for a deal to be completed. Premiership Rugby is said to be doing all it can to avoid another club going bust and while there is optimism the US-backed investment will succeed, the situation has been dragging on since last year. The RFU will also be under pressure to conduct strict due diligence on any takeover after the union was skewered by MPs as part of a digital, culture, media and sport select committee hearing into the demise of Wasps and Worcester. In November, the RFU’s chief executive, Bill Sweeney, was accused of being “asleep on the job” while he and Premiership Rugby’s Simon Massie-Taylor were blamed for “failure on an epic scale”.
The investors, therefore, would have to pass the RFU’s fit and proper owners test and demonstrate proof of funds to be given the green light. Worcester’s new owners failed to meet the RFU’s conditions for entry into the Championship last month in a demonstration of the rigorousness of the process. Ultimately, it is also the responsibility of the RFU to suspend any club that cannot meet its financial commitments, as was the case with Wasps and Worcester, who were both subsequently permanently removed from the Premiership.
It is understood that in October, some members of London Irish staff were actively seeking new jobs amid the financial concerns circling the club. The situation is different to Wasps and Worcester in the sense that Irish do not have HMRC chasing them but fears over their financial situation have dogged them all season.
Against that backdrop it is all the more impressive that Irish have risen up the table to fourth and currently occupy the final playoff position. They have a tranche of young English players – even if Ollie Hassell-Collins’ summer move to Leicester was confirmed this week – which makes them an attractive proposition for potential investors. They are, however, tenants at Brentford’s Gtech stadium and the Premier League club are said to have concerns about sharing with Irish – given problems with the pitch – now that they are an established top-flight side.
“It has been public knowledge that the club is exploring its options with regards to investment. However, no comment will be made until there is anything to announce,” a London Irish statement read. “In regards to recent media reports, London Irish can categorically confirm that all staff will be paid this month. Anything reported to the contrary is pure speculation.”
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Meanwhile, Newcastle have been forced to deny reports they are preparing for voluntary relegation after widespread cost-cutting at the club. England international Trevor Davison and George McGuigan have unexpectedly left the club mid-season while the head coach Dave Walder recently stepped away from his role. But the Falcons have said that suggestions they are planning for life in the Championship are “categorically untrue”.
From 2024 onwards, however, a 10-team Premiership is the preferred option as rugby administrators reshape the domestic game, according to Massie-Taylor. “It’s under discussion at the moment,” he said. “There’s a general theme around less is more, both in terms of player welfare, loading and congestion with the international calendar generally. People have recognised that 10 is an optimal number but you need to balance that desire with the practical realities of having 11 shareholders at the moment.”