Rugby Union: London Irish fail to pay players and staff April wages - what happened to Worcester and Wasps?

London Irish players and staff are still waiting to receive their April wages as concerns grow over the club’s financial future. The players were told on Tuesday (2 May) that they would be paid but the funds had still not arrived by Wednesday morning and the players have now been called to a meeting on Wednesday lunchtime to discuss further.

London Irish are currently in the process of a protracted takeover by American consortium, the Redstrike Group, and the delay to wages, which were due on Monday, had been attributed to the fact it was a bank holiday and the money was coming from a new company being transferred from the United States.

The club last played on Sunday 23 April and suffered a 45-21 loss to Saracens. They will now prepare to take on Exeter Chiefs this Saturday (6 May) at 4pm at the Gtech Community Stadium. The Rugby Union side play at the same stadium as Premier League’s Brentford in West London.

What’s been said?

The chief executive of Premiership Rugby, Simon Massie-Taylor, spoke to BBC Radio 5 Live on Tuesday (2 May) saying he believed London Irish’s situation would be resolved soon: “I do think it’s different (to the situations at Worcester and Wasps). Between Premiership Rugby and the RFU we’ve been engaged for quite a while with both the current ownership and the future buyers and there are lots of positive signals coming from both sides.

“It’s been reported that the new ownership have been in front of the players and the staff last week and today (Tuesday) which is a positive signal of their intent. And if it comes off then clearly you’ve got a new breed of investor. They’re from across the pond and they’ve got interest in other sports so it is a positive news story.”

Michael Lynch, a partner at law firm DMH Stallard detailed that: “Reading between the lines, it appears that London Irish’s negotiations with the American consortium looking to take over the club may well have stagnated, creating a cash-flow problem. HMRC appears not to be pursuing repayment, as it did so with Worcester and Wasps, nor does it seem there is any other extant creditor pressure. However, that does not negate the circa £30 million debt position London Irish find themselves in.

‘Ultimately, it comes down to London Irish’s out-goings exceeding revenue, which is unsustainable without support. This may leave London Irish with little option but to consider more acute and damaging (to the club and community) formal insolvency options.’

What happened to Worcester and Wasps?

The situation with London Irish has become reminiscent of what took place at Worcester and Wasps earlier this season. Both sides had been struggling to pay wages before going into administration and eventually out of business.

The Atlas Group has now completed the takeover of Worcester Warriors although when and into which division the club will return is currently unknown. It is also believed that a deal for Wasps to play their Championship home games at the ground could also now move forward.