London Irish suspended from Premiership after missing wages deadline
London Irish, a rugby club that has been present for 125 years is now facing suspension from all leagues due to the failure to provide proof of funds and ownership for next season. The Rugby Football Union confirmed the club’s suspension from all leagues for missing the deadline to provide outstanding salaries for May and failing to secure takeover from a US consortium.
The impact of suspension
The suspension of the London Irish rugby club is a devastating blow for the professional club rugby union in England. Prior to this, the Wasps and Worcester Warriors also ceased operations and the financial viability of the league is now in doubt. Premiership rugby has no choice but to fast-track plans for a 10-team league for the start of next season, just two years after the RFU council agreed to expand to 14 teams.
The players of the London Irish rugby club now face difficulties finding new clubs as their peers in the Premiership and in the Top 14 in France have already committed their spending for next season. The suspension of the club may result in more players being out of their respective leagues.
The cause of suspension
The London Irish rugby club has been lumbered with debts amounting to over £30 million and has failed to pay outstanding bills, including taxes. The collapse of the club results from a lack of transparent proof of reliable long-term funding. The US consortium, led by Californian lawyer Alfred ‘Chip’ Sloan, had been negotiating to take over the club recently and come up with repeated assurances that the takeover deal was on course. However, the consortium ignored multiple requests for evidence of proof of funds and ownership, ultimately leading to the club’s suspension.
The way forward
The RFU, Premiership Rugby, and Rugby Players Association have established a hardship fund worth several hundred thousand pounds to support players and staff who are most in need. The RFU will also take over the London Irish academy and put Wild Geese, the London Irish amateur club, who compete in Thames 2 leagues, in a position to continue playing at the club’s Hazelwood ground. Premiership Rugby‘s CEO left open a possibility for London Irish to re-enter the professional rugby system in the future, stating an eagerness to work with all stakeholders to create a professional rugby system for the club to return at the right time.
The future of Professional Rugby
The collapse of the London Irish rugby club raises questions about the financial viability of professional rugby. The RFU chairman, Tom Ilube, suggested that the governing body would have to reassess its investment in professional rugby, having spent £25 million annually in the Premiership. The Premiership Rugby chief executive, Simon Massie-Taylor, stated that the league had already made “significant progress” to ensure it “prospers in the coming season.” The financial challenges faced by the rugby club serve as a reminder that sports franchises endure risks and must be managed in a financially prudent and sustainable manner.
<< photo by M. Cooper >>
