London Irish players and staff hopeful of being paid on Wednesday after tense club meeting
London’s Irish players and staff hope to be paid on Wednesday after promise of money from America during tense club meeting…
- Insolvency expert has sounded the alarm about the Irish’s apparent predicament
- RFU and Premiership Rugby stand ready to intervene if payment does not go through
- Rugby Players’ Association would also be on alert due to crisis
London’s Irish players and staff will find out on Wednesday morning whether their monthly back wages have been paid – as promised at a tense meeting on Tuesday at the club.
The Exiles team was addressed by Howard Thomas on behalf of potential buyers, the Redstrike Group, who insisted that payroll be sent from lenders in America. It is understood that wages will appear on the accounts late Wednesday morning.
Sources have indicated to Mail Sport that the RFU and Premiership Rugby are on stand-by to try and intervene if the payment falls through, at a time of growing concern over the Brentford-based club’s protracted takeover.
The Rugby Players’ Association is also believed to be on alert as they, the RFU and PRL all fear another club collapse and more sudden redundancies following the crushing demise of Worcester and Wasps.
An insolvency expert has sounded the alarm over the apparent predicament of the Irish, who have been thriving on the pitch in recent times despite the backdrop of financial turbulence.
The London Irish players and staff have promised payment of their deferred wages
Michael Lynch, a partner at law firm DMH Stallard, said: ‘Reading between the lines, it seems that London Irish’s negotiations with the US consortium seeking to take over the club may have stalled, creating a cash flow problem.
HMRC does not appear to be pursuing repayment, as it did with Worcester and Wasps, nor does it appear that any other existing creditors are under pressure. However, that does not detract from London Irish’s approximately £30 million debt position.
“Ultimately, the bottom line is that London Irish’s expenditures exceed its revenues, which is unsustainable without aid. As a result, London Irish may have little choice but to consider more acute and damaging (to the club and community) formal insolvency options.”
As English rugby continues to experience a period of turmoil, the Atlas Group’s acquisition of Worcester was at the cutting edge as the deadline for the official administrators’ approved buyers to complete or withdraw from the transaction reaches. Mail Sport understands that, in the event that Atlas cannot proceed as intended, former rugby director Steve Diamond is monitoring the situation and may consider reviving his consortium’s own takeover bid.
Meanwhile, the RFU is expected to confirm in the coming days that former England defense guru and All Blacks head coach, John Mitchell, will succeed Simon Middleton in charge of the women’s national team. He worked with the men’s team under Eddie Jones from September 2018 until his abrupt departure in the summer of 2021.
Bath have announced the summer arrival of Lee Blackett as their new offensive coach. He was in charge of Wasps when the club came into administration last autumn and has subsequently revived his career with a productive spell in West Wales with the Scarlets.