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Home Rugby U

London Irish suspended from Premiership after failing to provide financial assurances

June 7, 2023
in Rugby U
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London Irish share the Gtech Community Stadium with Premier League football side Brentford

London Irish have been suspended from the Premiership after missing a deadline to pay players and staff.

The club, who were given until Tuesday to complete a takeover or risk being suspended, will not be allowed to play in any league next season.

A US consortium had been trying to buy Irish, who finished fifth in the Premiership during 2022-23.

A statement from governing body the Rugby Football Union (RFU) said the takeover had not materialised.

Despite plans announced in 2021 to expand its top division to 14 teams, English rugby faces the prospect of a 10-team Premiership next season after the earlier demise of Worcester Warriors and Wasps.

That outcome was discussed by clubs midway through last season, according to Leicester Tigers chief executive Andrea Pinchen.

RFU chief executive Bill Sweeney said: “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.”

Sweeney said the RFU had worked with the club, Premiership Rugby and the Rugby Players’ Association to “do the utmost to secure the long-term viability of the club”.

“To achieve this, it was imperative that transparent evidence of funding be presented to us,” he added.

“This would have been either by the proposed buyers undertaking to provide all required working capital to meet the club’s obligations for at least the 2023-24 season; or the club providing evidence that it would continue to fund its operations throughout the 2023-24 season.

“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.”

How did London Irish get here?

While Irish enjoyed a solid season on the pitch – finishing fifth and reaching the final of the Premiership Rugby Cup for the second successive season – there has been talk for some time of issues off the field.

The club are understood to have debts of about £30m, and owner Mick Crossan has been in protracted talks to sell to a US-based consortium.

Crossan had to step in to pay overdue wages in April, just minutes before players were preparing to submit breach-of-contract notices.

The club were initially given a deadline of 30 May to complete the takeover or risk being suspended from the Premiership next season, but the RFU pushed that cut-off point back to 16:00 BST on Tuesday.

As well as either completing the takeover or proving they had funding to operate for next season, Irish had to ensure all staff and players were paid in full for May, after just 50% of the money had been forthcoming.

The club were last week served a winding-up petition by HM Revenue & Customs over an unpaid tax bill.

Petitions were filed at the High Court on Friday against London Irish Holdings Limited and London Irish Rugby Football Ground Limited.

Premiership loses Wasps and Worcester in 2022

The winding-up petition came on the day the UK government appointed independent advisers to support the sport in the wake of the demise of Worcester and Wasps in the early months of last season.

Both clubs went into administration within the space of 21 days and ended up being expelled from the Premiership.

Wasps’ demise as a leading domestic club was confirmed last month when the RFU withdrew a conditional offer of a place in the Championship for next season.

The two-time European and six-times English champions will instead play “at the bottom of the pyramid” after being demoted to the 10th tier of English rugby.

Wasps went into administration in October, the month after Worcester suffered the same fate.

They were taken over in December but lost their proposed place in the second tier after the new owners could not provide evidence they were able to pay creditors and other financial commitments.

Worcester, meanwhile, were suspended by the RFU after entering administration in September, just months after winning the Premiership Rugby Cup – their first major trophy.

Players and staff had their contracts terminated after part of the club was wound up over an unpaid £6m tax bill.

Worcester were formally taken over by the Atlas Group in May after initially agreeing a deal with administrators Begbies Traynor in February.

When, and in which division, the club will return to playing is unknown.

After being named as preferred bidders following the collapse of the club, Atlas – led by ex-Warriors chief executive Jim O’Toole – withdrew from negotiations with the RFU over playing in next season’s Championship and backtracked on unpopular plans to rebrand as Sixways Rugby.

Although proposals remain to merge with the first team of local tier-five side Stourbridge, nothing official has been announced, with Atlas warned by the RFU any move to “buy their way” back higher up the league, rather than start at the bottom in tier 10, would not be allowed.

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