"Failed to come good" - London Irish suspended with two more clubs at risk
Rugby NewsTuesday, 06 June 2023 at 13:56
London Irish have been suspended from the Gallagher Premiership with immediate effect after failing to secure funding for next season.
According to a report by The Telegraph, the Exiles have failed to meet their 4pm deadline for paying staff and players. Consequently, they have become the third Premiership club to face suspension this season.
This has since been confirmed by a statement from the RFU.
Last week, players and staff at the club requested the extension despite only receiving 50% of their May salaries.
According to the Evening standard, as of Tuesday morning, the Brentford-based club had failed to complete a US consortium-led takeover first mooted in October.
The US consortium of ex-NFL and NBA stars has failed to come good on a raft of promises since first engaging London Irish Owner Mick Crossan.
Tonight at approximately 7pm, the Rugby Football Union is anticipated to release a formal statement.
This announcement will come after verifying whether London Irish have satisfied the two essential requirements they were given last week.
The RFU had two specific expectations: they either need tangible proof of the proposed takeover or a commitment from Mick Crossan, assuring financial backing for the upcoming season.
In the meantime, the players and staff are still awaiting 50% of their May salaries.
List of the Premiership’s five most at risk clubs makes worrying reading
All clubs in the Gallagher Premiership have been facing a concerning period, as highlighted by the Press Association News Agency's recent report.
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.
#1. LONDON IRISH - TEETERING
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. "
Rob Simmons of London Irish during the Gallagher Premiership match between London Irish and Leicester Tigers at The Gtech Community Stadium, London on 25 February 2023 (Photo: Danny Loo/PPAUK)
#2. WORCESTER WARRIORS - GONE
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."
#3. WASPS - GONE
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."
Wasps player Alfie Barbeary during the warm up before the Gallagher Premiership Rugby Match between Wasps and Sale Sharks at Ricoh Arena on 27 Mar. Photo: Steve Bond/PPAUK
#4. EXETER CHIEFS - SHAKY FOUNDATIONS
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."
Sam Simmonds of Exeter Chiefs on the break during the Aviva Premiership Match between Exeter Chiefs and Sale Sharks at Sandy Park, Exeter, Devon, England. - PHOTO: Tom Sandberg/PPAUK
#5. LEICESTER TIGERS - SHAKY FOUNDATIONS
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."
Jasper Wiese of Leicester Tigers celebrates with the Gallagher Premiership Rugby Trophy during the Gallagher Premiership Rugby Final Match between Leicester Tigers and Saracens at Twickenham Stadium on 18 June 2022. Photo: Tom Sandberg/PPAUK
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