Premiership financial issues

[Which Tyler]

FTR, I'm not particularly angry with him; and I'm grateful to anyone who sinks money into a rugby club to actually support it (as opposed to the cowboys at Wuss).
"Angry" is Mells' word, I'm just going with it.

Ultimately, whilst Crossan is the owner, it falls to him to make the payments, and there's nowhere else to direct the "anger". It's certainly not the responsibility of people who don't own the club, even if it would be a nice gesture (as it was when IIRC Dai Young or Steve Diamond were doing likewise).

[Mellsblue]

So we shouldn't be angry with the employer for not paying their employees, we should be angry with someone who isn't the employer for not paying people who aren't their employees?

Surely, whilst he owns the club, he remains the owner of the club; and it's his responsibility to pay his employees, not someone else's.


Equally, if I'm selling my house, it's my job to pay my mortgage, not the buyer's. I'm pretty sure that if I didn't, then the bank would be coming after me, not them.

Yep, it’s that black and white… or what Margin_Walker said.

[Mellsblue]

"Angry" is Mells' word, I'm just going with it.

FKAS called Crossan a dick from which I surmised he was angry with him.

[stepsider]

Given the progressive worsening of America's banking sector woes, let's hope that the US consortium is soundly based.

Any issues here would be very unfortunate timing but can't be ruled out.

[Margin_Walker]

Given the progressive worsening of America's banking sector woes, let's hope that the US consortium is soundly based.

Any issues here would be very unfortunate timing but can't be ruled out.

That's my worry really.

It's plausible that this was all looking positive behind the scenes a few months ago, but that external factors have introduced a level of jeopardy now.

[Mellsblue]

Given the progressive worsening of America's banking sector woes, let's hope that the US consortium is soundly based.

Any issues here would be very unfortunate timing but can't be ruled out.

Given the rumours that the main hold up is that the consortium won’t give the name of who/what would be the ultimate owner…

[Mellsblue]

According to Alex Lowe of The Times, the RFU have set a 30th May deadline for the takeover at LI. The consortium still haven’t given proof of funds or the name of the proposed owner…

[Margin_Walker]

Pretty negative article generally.

All feels to me like the consortium just don't have the funds in place. No other reason to let it get to such a critical point.

[jimKRFC]

According to Alex Lowe of The Times, the RFU have set a 30th May deadline for the takeover at LI. The consortium still haven’t given proof of funds or the name of the proposed owner…

My brother-in-law lives out there, and works in banking, and he is really worrying about the state of the financial market at the moment. talking about getting all his money out the market by the end of the week. No idea what the cause of concern is though (he's a bit of a knob so don't really chat to him)...

[Which Tyler]

My brother-in-law lives out there, and works in banking, and he is really worrying about the state of the financial market at the moment. talking about getting all his money out the market by the end of the week. No idea what the cause of concern is though (he's a bit of a knob so don't really chat to him)...

Repeating yourself much?

[Mellsblue]

[Margin_Walker]

Assuming this ever materialises (a big assumption at this point), and they just aren't investors in a more serious fund, the RFU's fit and proper test would need to work fairly hard with Lewis and Iverson.

[Mellsblue]

£300m for 5 years

[FKAS]

Ouch. Presumably that would reduce if they halt the planned increase on the salary cap. Grim reading even if the clubs see sense with that.

[Mellsblue]

Yeah, it would but, as Orange points out, it’s difficult to increase ticket sales and therefore revenue if the best players leave the league due to the salary cap. Bit of a catch 22.

[fivepointer]

Things looking pretty grim for Irish - https://www.thetimes.co.uk/article/c548 ... 60eab65c97

[FKAS]

Looks bad. The vultures are circling as well if players are talking to other clubs. There's a few clubs where you'd expect to see a signing or two announced that have been pretty quiet. I wonder whether in the game this has been expected and clubs have kept a little resource back to see if they can get some quality at a knocked down price.

I hope the Americans turn up with the cash but it sounds like another cowboy playing at being the owner.

[Which Tyler]

[Puja]

Moved this so as not to clog up the Championship thread, given that it doesn't look hopeful that Irish will even have that soft of a landing.

Poor sods. Doesn't sound hopeful at all. It might be a good outcome for the game in England in the long run - 10 teams is clearly the sweet spot for number of games, player welfare, and organising a calendar that makes some semblance of sense, but it's awful to lose three teams completely rather than having a strengthened Championship.

Wonder if it means Pat Lam will keep his job - given the reported break clause for finishing outside Euro qualification twice, will Irish being expelled invalidate that?

Puja

[FKAS]

Ah man, that's really bad news. Irish have always been such a fun team to have in the league be sad to see them go.

[Puja]

Rumour of hope for LIrish. It's from the Daily Heil, which I normally wouldn't trust to tell me that the sky was blue, but they do have good connections for rugby rumours.

London Irish could be handed an 11th hour reprieve and escape suspension from the Gallagher Premiership, Mail Sport understands.

The club had been told by the RFU they must prove the American consortium keen on buying them has the finances to do so or that current owner Mick Crossan would be able to fund the team for next season by close of play today.

If they couldn’t, they would have been suspended from the Premiership and followed both Worcester and Wasps in dropping out of the top-flight.

All the signs had pointed to that being the case on today’s deadline day. But Mail Sport understands Irish’s players were told this morning the RFU have allowed Irish’s takeover consortium an extension of one week to complete the deal.

It means the club is safe, for now at least, and there is fresh hope at Irish that the extra seven days will allow their purchase to be completed.

Crossan is poised to pay the salaries of Irish’s players and staff again this month while the sale is ongoing.

More to follow.

Puja


ETA. Updated the quote as the Heil provided more detail.

[FKAS]

Presumably the American consortium have put some sort of deposit into escrow or submitted compelling paperwork to the RFU. Hoping this all comes good for LI.

[fivepointer]

Ah, there's a twist in the tale.....

[Margin_Walker]

Yep, think the BBC first mentioned it last night. Feels a bit like the end game today. If something substantive in the way of proof of funds/ownership details didn't emerge from the buyers yesterday (not seen anything to suggest it did) and we are trying to pay 50% of staff salaries, I can easily see the powers that be losing patience today. It's put up or shut up time really.

[Puja]

This seems worryingly realistic as to why a bunch of NFL people would want to buy London Irish: https://www.standard.co.uk/sport/rugby/ ... 83390.html

If that's the case, perhaps the backing and forthing has come bceause they've realised they can drive the club to the wall with this "cheque is in the post" nonsense and then pick up Hazelwood for a song without ever having to own Irish at all.

If that's the case, I hope Ealing beat them to it.

Puja