London Irish Looks to New Owner to Secure Future
Reports suggest US investors could be poised to takeover
Attendances have increased since the move to Brentford. Picture: London Irish
March 31, 2023
London Irish has issued a statement in response to growing speculation about financial problems at the club.
Reports suggest that there is a possibility of a takeover by a consortium of US investors but, in the meantime current owner Mick Crossan, the founder of Powerday, has said that he will continue to financially support the club. A pledge has been made that the March payroll for players and other staff will be met this month.
The club’s statement says, “It has been public knowledge that the Club is exploring its options with regards to investment, however no comment will be made until there is anything to announce.
“In regards to recent media reports, London Irish can categorically confirm that all staff will be paid this month. Anything reported to the contrary is pure speculation.”
Concerns about the club rose after a number of departures of star players was announced with Ollie Hassell-Collins moving to Leicester at the end of the season and Australian lock Rob Simmons joining Clermont with full back Tom Parton leaving for Saracens.
However, sources close to the club have pointed out that key players such as Henry Arundell, who won another cap for England earlier this month, and Ben Loader are staying and play in the same positions as the departing backs.
London Irish has debts in excess of £30million but, after a slow start to the season, could achieve a top four finish as well as a place in the European Champions Cup after a string of good performances. Finishing in the top four means that the Exiles remain in with a chance of winning the Premiership and European competition would mean a substantial boost to the club’s cashflow. Since the move to the GTech stadium from Reading, attendances have increased.
Financial pressures in domestic rugby union have grown after the pandemic left a huge hole in the accounts of many clubs and the top level professional game has already seen two teams, Wasps and Worcester, fold this year. Another club, Newcastle has recently denied reports that it is considering applying for voluntary relegation after it was forced to make a number of cost-cutting measures.
Unlike the two clubs that folded, London Irish is believed not to be in arrears to HMRC, so a sudden end is not expected but financial concerns have dogged the Brentford-based team since the beginning of the season.
The Rugby Football Union (RFU) has been given assurances London Irish will meet this month’s payroll and it would need to give approval for any potential takeover by US investors. Worcester has been denied entry into the Championship, the second tier of English rugby, after the owners failed to meet conditions set by the RFU.
Despite this, the RFU is understood to be doing it all it can to avoid another club from going under but there is some anxiety over how long it has taken to conclude an agreement with the US investors, the discussions having already had been ongoing for two months.
Concerns are also being raised about the future of the arrangement between London Irish and Brentford FC, with reports suggesting the football club is unhappy with the wear and tear caused to the pitch at the GTech stadium. This has become an increasingly relevant issue due to the high pitch standards required by the Premier League. Recently the club was forced to use lights to encourage seed germination at night to encourage damaged grass to regrow leading to some complaints from people living in the vicinity of the ground.
Brentford recently announced its 2022 results which showed a bounceback to profitability after the losses suffered during Covid.
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