"Deeply frustrating" - RFU statement on the future of London Irish

1) a takeover of the club has been completed and approved by the RFU, with the buyers undertaking to provide all required working capital to meet the club’s obligations as they fall due for at least season 2023/24; or

2) the club evidences that it will continue to be funded to operate throughout the 2023/24 season. If the club fails to meet these conditions it will be suspended from participating in the Premiership (and other competitions) in season 2023/24 to avoid a scenario where the club enters insolvency mid-season, with the corresponding and substantial impact that has on players, staff, and fans, as well as on the remainder of the league.

The extension, until Tuesday 6 June, has been given following consultation with staff and players who asked for the deadline to be extended to allow them to be paid 50% of their salaries. 

Paula Carter, RFU Board Member and Chair of the Club Financial Viability Working Group said; “It is deeply frustrating for all the staff, players and fans that there have been multiple missed deadlines.  

“We are extremely disappointed that the club has so far only funded 50% of the staff and player wages, however, we have to respect the wishes of those most affected. 

“The 4pm deadline on 6 June is final and we have added the stipulation that the club must also fulfil its contractual obligations to its employees by paying the May salaries in full.”

An investigation conducted earlier this season revealed the dire financial crisis engulfing English rugby, with Premiership clubs accumulating debts exceeding £500 million.

Furthermore, a thorough analysis of the clubs' latest financial accounts unveiled that Premiership clubs collectively owed more than £36 million in taxes, with only two out of the 13 clubs having a positive balance with the HMRC.

Outlined below is an examination of the current situation of five clubs, and the findings are deeply concerning.

PA wrote: "Burdened by debts of around £30million and with an owner desperate to sell in Mick Crossan, London Irish are shaping up to become the next club to be removed from the Premiership.

All staff must be paid on Wednesday for the month of May for the Irish to be granted a deadline extension for their proposed takeover by an American consortium. "

PA wrote: "The first club placed into administration back in September, Worcester’s future is still uncertain despite being taken over by Jim O’Toole’s Atlas Group.

"Entrance into the second-tier Championship has been blocked by the RFU for their failure to meet certain conditions and their plan of joining with Stourbridge and relaunching in the fifth tier appears dead in the water."

PA wrote: "The month after Worcester folded, Wasps followed them into administration as the league suffered the crushing blow of losing one of English rugby’s most famous brands.

"Further misery was to come as having targeted rebirth in the Championship, the failure to meet certain conditions forced the RFU to revoke their license and demote them to the foot of the rugby pyramid."

PA wrote: "Even Exeter, one of the few clubs in the pre-pandemic era to operate at a profit, were forced to take special measures in December.

"Chiefs owner Tony Rowe bought a stake in a hotel owned by the club in order for it to service its debts, including covid loans issued by the Government. Rowe’s intervention has shored up the finances for the time being."

PA wrote: "Leicester needed an emergency cash injection of £13m from directors Peter Tom and Tom Scott to address what chief executive Andrea Pinchen described as “very challenging conditions”

"A letter from the club to shareholders sent in March stated that if the funding was not approved, there would be no option but to appoint administrators."