Debt-laden London Irish exits English Premiership

London Irish became the third rugby team to be turfed out of the English Premiership in eight months after the Rugby Football Union (RFU) said the club missed Tuesday’s deadline to pay their players and prove they had a financially viable future.

The club was given a week’s extension to show evidence of a proposed takeover by a US consortium or that they had the finance in place under present owner Mick Crossan to continue through the 2023-24 season.

However, they failed to do so or to fully pay their players and staff by Tuesday’s 5pm deadline. The RFU duly announced that the club would not be able to participate in any league next season.

“The decision was taken after six months of talks to take over the club failed to materialise and to provide certainty to staff and players, thereby allowing them to seek alternative employment,” the RFU said in a statement.

“The move also provides clarity to other clubs in the league and prevents a situation where the club goes into administration part way through a season,” said the RFU.

“The RFU, Premiership Rugby and the RPA [Rugby Players Association] have been in regular dialogue with the club to support the takeover and provide regular updates to players and staff.

“Today the three organisations have announced they have launched a hardship fund for players and staff who are most in need of financial support. The fund will also be available to those in need after the Wasps and Worcester insolvencies.”

The RFU’s club financial viability group agreed to the extension at the request of players and staff, who were paid only half of their May salary last week.

Last Friday, the government’s tax authority HMRC served three winding-up petitions on the club. this was the fate of Wasps and Worcester, who went into administration in late 2022.

Irish finished fifth last season, their best since 2009, but their demise has again exposed the financial struggles afflicting the professional game in England where limited TV and ticketing income struggles to support huge playing squads.

Irish have been sharing grounds with Premier League football club Brentford in west London, and reported debt of about £30m.

“This is desperately sad news for everyone who is part of the London Irish community as well as all the players, fans, staff and volunteers for whom this club means so much,” said RFU CEO Bill Sweeney.

“Our collective priority has been to do the utmost to secure the long-term viability of the club and the protection of its players and staff.

“Despite requesting this evidence over the last six months and receiving assurances on multiple occasions that we would receive proof of ownership and funds; it has not materialised.

“In the event that it would ultimately not be possible to save London Irish, our second priority has always been to avoid the club entering an unplanned insolvency midseason.

“This was to prevent the huge disruption to players, staff, and fans, as well as on the remainder of the league and sporting integrity of the Premiership and Championship, that we witnessed with the demise of Wasps and Worcester.”

With no automatic promotion from the Championship again for the new season, the Premiership looks set to consist of 10 teams, and it is highly likely to stay that way.

Reuters