02 May 2023 , 10:38
395
0
London Irish have failed to pay their staff for April amid concerns over their future.
The Premiership landscape has already shifted this season after Worcester and Wasps went under with fears growing that a third team could be in turmoil. The west London-based outfit have stated that company accounts and complications that stemmed from the Bank Holiday weekend have been cited as reasons for the delay, as per the Telegraph.
Failure to pay wages were among the first signs that Wasps and Worcester were in financial difficulty before they endured swift declines and eventually hit the wall as they now look to find their way back.
The American consortium, who are in takeover talks with the Premiership club, told London Irish employees in a meeting on Friday that their money would not be paid on time. A subsequent email was sent on Sunday assuring staff that payments would be made on Monday, but that failed to materialise, raising more concerns. The Daily Mail has now reported that London Irish's CEO and the potential buyers have confirmed in a meeting that the money has been transferred and wages will be paid on Tuesday.
London Irish do not have the tax office on their back, which was a major factor behind the decline suffered by Worcester and Wasps. However the Times reports they are at "high risk" due to their debt, thought to be around £3m, and their low annual turnover.
New Worcester Warriors owners confirmed as crisis-hit club looks to move forward
The Premiership outfit do not have a home ground which allows them to generate revenue. They currently play their home games at Brentford's G-Tech Community Stadium having spent over a decade at the Madejski Stadium in Reading.
The American consortium seeking to purchase the club, involving Redstrike, whose managing director is former Premiership Rugby CEO Howard Thomas, have enquired about a long-term tenancy at AFC Wimbledon's Plough Lane. Their deal at Brentford is up in three years and the Bees no longer require the rent given the income they receive as a Premier League club.
Rugby has struggled financially since the pandemicPremiership Rugby has struggled post-pandemic with clubs feeling the pinch financially, which is why the salary cap has been greatly reduced for next season.
On the pitch London Irish are enjoying their best season for over a decade with their excellent second-half of the campaign putting them in top four contention before the recent defeat at Saracens. They can secure a spot in next season's European Champions Cup on the final weekend.
England winger Ollie Hassell-Collins, who came through the academy at the club, has recently announced he will leave to join Leicester Tigers. Tom Collins has been confirmed as a new signing with the versatile back-three player heading south from Northampton.