London Irish crisis

Michael Lynch, partner at law firm DMH Stallard, said:

“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, a large chunk of which (like many Premiership clubs) is due to the pandemic related government loan schemes.

“Ultimately, it comes down to London Irish’s outgoings exceeding revenue, which is unsustainable without support. When that support wants something, there will be shift, especially when a purchasing party ostensibly holds the purse strings.

“This may leave London Irish with little option but to consider more acute and damaging (to the club and community) formal insolvency options.”