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James Cole explains why London Irish have been suspended from all RFU leagues
London Irish have been suspended from the Gallagher Premiership and will not be able to play in any RFU league next season after failing to prove they have the funds to operate in the 2023/24 campaign.
Last week, Irish were given a six-day extension for either a takeover to be completed – they have been in talks with an American consortium – or to show they had the money to continue under their current ownership for the coming season.
That deadline elapsed at 4pm on Tuesday and the Rugby Football Union (RFU) has now suspended the Exiles from all leagues after failing to meet their commitments to pay staff and players in full for May.
“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,” Bill Sweeney, CEO of the RFU, said.
“Working alongside Premiership Rugby, the RPA and London Irish over recent months, our collective first priority has been to do the utmost to secure the long-term viability of the club and the protection of its players and staff.
“To achieve this, it was imperative that transparent evidence of funding be presented to us. 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.
London Irish become the third Premiership club in just seven months to suffer suspension due to financial issues
“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.
“In the event that it would ultimately not be possible to save London Irish, our second priority has always been to avoid the club entering an unplanned insolvency mid-season. This was to prevent the huge disruption to players, staff, and fans, as well as on the remainder of the league and sporting integrity of the Premiership and Championship, that we witnessed with the demise of Wasps and Worcester.
“In the absence of transparent proof of reliable long-term funding, and for the duty of care for all involved at the club, the sad decision has now been taken to suspend the club from RFU leagues.”
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London Irish released a brief statement reading: “The club can confirm that London Irish has received correspondence from the Rugby Football Union to confirm suspension for the 2023/24 season.
“The suspension will result in the club being unable to compete in the Gallagher Premiership, Premiership Rugby Cup, and Heineken Champions Cup throughout the 2023/24 campaign.
“The club continues to remain in active discussions with the RFU as to any circumstances that may result in the suspension being lifted.”
Irish, who finished fifth in the 2022/23 campaign, just three points adrift of the play-off spots, are the third team to be suspended from the Premiership in just seven months, with Wasps and Worcester Warriors both collapsing due to financial problems.
Wasps have since had their return to the second-tier Championship revoked after a takeover, due to certain agreed conditions with the RFU failing to be met, while Worcester are no closer to returning to competition, with the future of the club’s existence hanging in the balance.
Irish are £30m in debt and last year owner Mick Crossan said he would sell the club for £1 if he could. On Friday, the club were also served three winding-up petitions from the Government’s tax authority HMRC, due to unpaid taxes of £1m.
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Crossan’s failure to pay the May salaries in full last week persuaded the RFU to extend the initial May 30 deadline to June 6 in the hope staff and players would get the money owed to them.
Employees received their April pay a week late and the club had to cover their salaries, with payments eventually going through two days prior to their last match of the season against Exeter Chiefs.
The players also demanded proof their insurance premiums had been covered before taking to the field for that game.
The RFU, Premiership Rugby and the RPA have launched a hardship fund for players and staff who are most in need of financial support, which will also be available to those in need following the Wasps and Worcester insolvencies earlier in the season.
Sweeney added: “The RFU, working with Premiership Rugby and the RPA, has been in constant dialogue with players to inform them of the situation. Collectively we have established a hardship fund to support those players and staff most in need and we will be working closely with London Irish to confirm what the future of rugby at the club looks like. With regret, this will not be in any league next season.
“The RFU will ensure the London Irish Developing Player Pathway and Academy continues, taking over the running of these programmes if required.”
London Irish finished fifth in the Premiership this season, narrowly missing out on the play-offs
Premiership Rugby chief executive Simon Massie-Taylor said: “We are extremely mindful of the impact this news has on players and staff at London Irish and that is exactly why we have set up the hardship fund to support players and staff most impacted.
“I thank the other Premiership Rugby clubs for supporting this and the RPA for helping implement the scheme.
“We fully appreciate that this does not compensate for the loss of jobs or the impact it has on fans, but we are committed to working with all stakeholders to create a professional rugby system that London Irish can re-enter at the right time.
“As a league we are making significant progress in recalibrating so that Premiership Rugby prospers in the seasons ahead.
“In the meantime, if an owner decides to withdraw financial support for a club, we have limited options to keep it going.”
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London Irish captain Matt Rogerson says the sport is at a crossroads and significant changes need to made to take the game ‘to a new level’
‘Premiership Rugby financial model not sustainable’
Analysis from Sky Sports News’ James Cole…
“This is the news we expected but also feared.
“This is a very sad day for London Irish, a club with 125 years’ history. They finished fifth in the Premiership this season, they have got a brilliant Academy, some outstanding players but unfortunately the club’s financial issues have just caught up with them, as we’ve seen with Worcester and Wasps previously this season.
“The issue now for London Irish as they drop out of the leagues is whether the club can actually stay solvent. They have £30m of debt, they’ve just had a winding-up petition from HMRC over an unpaid tax bill. The key now is can they avoid administration? It’s not looking good and it’s not looking great at all if London Irish are to avoid becoming the third Premiership club to go into administration this season.
“You wonder now what the RFU and what Premiership Rugby are going to do to ensure some sustainability for the other clubs. The current financial model of Premiership Rugby is that the clubs lose money and they are reliant on benefactors to pump money into the clubs – when those benefactors say enough is enough, the clubs are going under.
“It is not sustainable, something needs to be done.”