Newcastle Falcons have been threatened with legal action by Ospreys over their purchase of centre Josh Matavesi, reports The Rugby Paper.
The North East club have reportedly failed to pay the full £150,000 transfer fee for the Fijian speedster.
It’s been revealed that the Welsh club have demanded the overdue money, believed to be £80,000 after the Falcons made an initial payment of £70,000.
“They made one payment but refused to pay the rest,” revealed a source.
“Then it got to the stage where they wouldn’t talk about it. They left us with no other option but to issue and statutory demand.
“They will have to settle or face some serious consequences. It just goes to show that all is not as well in the English game financially as some say it is.”
A statutory demand for the recovery of a debt is the first step to wards high court proceedings.
If payment isn’t made within three weeks of receiving the notice, the creditor can then decide whether to petition for bankruptcy or issue a winding-up order.
A senior figure of Newcastle nevertheless has replied saying: “The money will be in Ospreys bank account on Monday.
“We were a bit late paying but it’s all been agreed and sorted, as of yesterday.
“We have work through it with Ospreys and there are no longer any issues.”