The RFU Club Financial Viability Group has agreed to give London Irish a one-week extended deadline to meet the original conditions as set out below and pay the remaining May payroll to staff and players.
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.”
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. “
