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Why there isn’t 'mass panic' at London Irish - Andy Goode

(Photo by David Rogers/Getty Images)

It’s not good at all that players and staff at London Irish are reportedly yet to be paid their April wages but people should be careful likening this to the Worcester saga. The current financial climate in English rugby and the clamour for headlines mean that phrases like ‘financial meltdown’ are being bandied about and it is being suggested that they could go bust – but that isn’t what I’m hearing.

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Any deal of this magnitude is difficult to conclude. There are so many fine details to iron out before everything is in place. Of course, it could still fall through but people are rushing to judgement because of everything that has happened elsewhere already this season.

The optics aren’t good when the takeover has already been protracted and has been talked about for a number of weeks and then somebody suggests that the delay with the wages is because of the bank holiday, yet payment still hadn’t gone through on Wednesday morning.

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Indeed, it isn’t just optics and the reality of that situation will have made life very difficult for a lot of people at the club who have outgoings at the start of the month and will be struggling to make ends meet during the delay.

However, there is a big leap from that to claiming that the Exiles are on a financial precipice and are about to go under imminently, so a bit of balance wouldn’t go amiss.

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Having spoken to people at Irish, I know there have been regular meetings with representatives of the US consortium that is attempting to complete the takeover and fingers crossed they are as good as their word. You can understand why people would worry when you factor in what missed payrolls led to at Worcester and the mistruths that were told there, but every situation is different and this one could yet turn out to be very positive for London Irish.

They have been brilliant on the pitch this season, have an excellent training complex at Hazelwood and a top-class academy – all ingredients that are clearly very attractive to potential investors.

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The fact that they don’t own their own stadium is negative and there were rumours recently about a long-term ground share with AFC Wimbledon as opposed to the current deal to play at Brentford’s Gtech Community Stadium.

That would be something that you could envisage being tricky to iron out for the consortium but it’s imperative that the club is able to keep what they generate on match days or it will likely be getting into more and more debt all the time.

Due diligence also has to be done on both sides and the RFU, who have contacted Irish to seek reassurance that staff and players will receive wages imminently, will be conducting their fit and proper owners’ test but Premiership Rugby seem confident that everything will be okay.

“I do think it’s different (to the situations at Worcester and Wasps),” chief executive Simon Massie-Taylor told BBC Radio 5 Live. “Between Premiership Rugby and the RFU, we have been engaged for quite a while with both the current ownership and the future buyers and there are lots of very positive signals coming from both sides.

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“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 have got a new breed of investor. They are from across the pond and they have got interest in other sports, so it is a positive news story.”

Deals like this always take longer than anticipated to get over the line. The US consortium wanted to have everything signed, sealed and delivered by the end of April, which clearly hasn’t happened, so there is now an amount to cover in the meantime.

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It’s abundantly clear that the financial situation at most Premiership clubs isn’t great at the moment but Irish do not have HMRC chasing them – as Worcester and Wasps did – and there is a big difference between a deal taking a frustrating amount of time to be concluded and them going to the wall.

Hopefully, the good news of a done deal and a few details will be just around the corner, with the April wages also landing in bank accounts imminently, and the headlines of the last day or two will be tomorrow’s fish and chip paper.

Only time will tell whether it does get over the line and Exiles fans can start looking forward to a potentially even brighter future, but the word from inside the camp is that there isn’t mass panic about the situation. Far from it.

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Comments

2 Comments
A
Alan 713 days ago

This is a big deal. They'll be in breach of pension law and probably late with HMRC payments as well. The RFU should be taking sanctions - deducting points etc. But they'll sweep it under the carpet as ever.

M
Michele 714 days ago

I hope you're right - nice to see this more positive analysis. I would love (and am waiting to see) a Rugby Pass article about the RFU's $50 million debt. Thanks!

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J
John 1 hour ago
Super Rugby draw heavily favours NZ sides but they can't win in Australia

Cheers for the comment HHT!


I think your point on unfair draw and mine, which in essence is about an unfair draw actually aid each other for a rather strong argument that the draw needs to be looked at.


I think this is a case of two things can be true at once.


I have chosen in around 1000 words to explore this particular issue with the draw I have identified.


Your point, with having the NZ teams playing each other twice on some occassions while others in Aus not is also not fair.


But with the way the table looks currently, would the NZ sides all be in the top six if the draw had been done more in line with my and your point?


For instance, 4 of the 6 Aus wins against NZ sides have come against the Highlanders, 3 in Aus, 1 in NZ.


The Landers have beaten the Blues and lost to the Canes by 2 points, those are their only two NZ games to date and they play the Chiefs this weekend. Their 3 games against the Aussie sides in Australia compared to the Blues 1 is a massive disadvantage because travel takes it’s toll.


Then looking at your example the Blues, they have the toughest season of any side by far but I would also argue that the limited travel is a massive help in preparation, recovery etc. But their draw must be looked at, any side would suffer with a draw like that.


Although I am not suggesting the Aus sides are better than the NZ sides overall, the current ledger and table set up suggests the rift is not as big currently as the underlying assertion to your argument suggests.


More will absolutley be revealed over the coming rounds as the strength of the two franchises.

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J
JW 1 hour ago
'We offered him a three-year deal': Hurricanes priced out of U20 star

I see I’m not getting my point across.

If the plan from his family for him was to make more cash

Lets play along with you presumption these “shackles” existed then. Logically, as I’ve already tried to show, that makes no sense, but I’ll try to use it to show what I mean by saying/answering.. they would have got more cash by playing hard-to-get with the French clubs by returning to New Zealand and signing with the Hurricanes. Now you should see returning to NZ is not relevant to the discussion, it is also a euphemism, as he would already be (have returned) when he first decided to stay. His family would know that signing a development contract for the Hurricanes in no way legally affects his ability to take an offer in France.


Now, that wasn’t what I was saying happened, but if you can now follow that thread of logic, I’m saying its because this situation happened, signing for Toulon just months later, that you are wrong to think “returning to New Zealand” must mean he wasn’t “shackled”.


Actually, I’m not saying that he was “shackled”, the article is saying that. That is how you would read the words “His parents see that as the route they want their son to take, and we support that.” and “but it’s probably a slightly different package to what Toulon can offer” here, and I’m pretty sure in most English speaking places GD.


Of course without those statements I agree that it is very possible he’s grown, changed his mind from wanting to develop here with players and coaches he’s comfortable/friends with, to where he wants to take on the challenge of a rich and prestigious club like Toulon. A few months is perhaps enough time to people he trusts to open him up to that sort of environment even, but that’s simply not the message we go, is it? I also think you maybe have an over defense stance about thinking intrinsically or literally about money meaning he was thrown lots of dollars? It might be far from the case, but the monetary value of been given a home and jobs for the family, all the bells and whistles a wealthy club can provide etc is far removed from the mentality he’d currently be in of “cleaning the sheds” after a game. Even without real money just the life style they got given when there last would no doubt be enough to change the mind of some grown up living day to day off your own sustenance/plantation or like that they would have had.

11 Go to comments
J
JW 3 hours ago
Ex-All Black Richie Mo’unga teases return to ‘Test match setting’ in 2025

They didn’t really let him go though did they. He was gone, already signed to leave some 18 months earlier. Not much they could do.


Definitely a shame though, hence why I criticize the coaching for not unlocking that composure earlier. We would have seen he was definitely the player we need to take us through that WC, and the next, before the contract talks started. After, was too late. Conversely, if he had of continued to play the way he had been when he signed to go to Japan, I have no doubt Damien McKenzie would have been the player to lead us in 23’, and then we very likely would have won that Final. I’m not so sure Dmac would hve been good enough to get us past Ireland, Richie definitely deserves a lot of credit for simply getting us to the Final.


But that was all my message to HHT was. That class, or talent in this case, is permeant, and games like Ireland showed he did definitely had that. Obviously Richie’s got a large responsibility in realizing it sooner too, but in terms of not displaying it when it counts in 2019 or 2023, I reckon that’s on the coachs more than a lack of talent on his part, and it’s the same shame when it comes to your sentiment. If he was at the point were he could have saved out bacon against Ireland in 2022, it might not have been too late for NZR to have come in with a big contract offer. The bigger problem now is that Razor is only exasperating that problem with this new group. We now clearly know he was a big factor in Richie taking so long, because he’s replicating the same problems with the current batch. Thankfully NZR had no other option but to offer a big contract to secure Dmac this time though, regardless of how he must have felt after being treated like that.

8 Go to comments
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