london Irish Could Join Wasps And Worcester In Financial Turmoil
Gallagher Premiership club London Irish is at risk of following Worcester Warriors and Wasps into administration after players and staff failed to receive their salaries for April.
According to The Times, last week the American consortium involved in takeover talks with the West London club informed all employees that they would not be paid on time and, at time of writing (3rd May), staff have still not received any funds.
The situation has raised fears that the club will soon follow in the footsteps of London Wasps and Worcester Warriors. Earlier in the season both clubs struggled to pay staff wages before falling into administration and being expelled from the Premiership.
London Irish is currently £30 million in debt and is in the process of a protracted takeover. Unlike Worcester and Wasps, however, the club is not being pursued over unpaid tax but is thought to be high risk because of the amount of debt and a low annual turnover.
NFL franchises and international rugby teams regularly use London Irish’s training ground, however, the club does not own its home stadium and therefore can’t generate non-matchday income. Its current home ground, the Gtech Community Stadium, is owned by to Brentford FC.
Despite the alarm bells, the American consortium covered the March payroll and the RFU has sought assurances from London Irish that players and staff will receive their overdue April pay packets “imminently”.
Simon Massie-Taylor, Chief Executive Officer of Premiership Rugby, said it was, “a positive signal of intent” that the proposed investors were discussing the issues with the club’s staff in person.
“If it [the takeover] comes off then clearly you’ve got a new breed of investor, […] They’re from across the pond and they’ve got interests in other sports, so it is a positive news story,” Massie-Taylor added.
