RFU told London Irish can pay staff with potential US takeover moving closer

The Rugby Football Union has been given assurances London Irish will meet this month’s payroll but would still have to approve a potential takeover by US investors amid fears the Exiles could be the next Premiership club plunged into financial crisis.

The London Irish owner Mick Crossan has been seeking fresh investment all season and while a US consortium is said to be close to reaching an agreement, fears have been raised that players and staff would not be paid this month. Irish released a statement insisting that was not the case on Wednesday and the RFU is confident March’s payroll will be met by Friday.

The Exiles have mounting debts in excess of £30m, however, and time is of the essence for a deal to be completed. Premiership Rugby is said to be doing all it can to avoid another club going bust and while there is optimism the US-backed investment will succeed, the situation has been dragging on since last year. The RFU will also be under pressure to conduct strict due diligence on any takeover after the union was skewered by MPs as part of a digital, culture, media and sport select committee hearing into the demise of Wasps and Worcester. In November, the RFU’s chief executive, Bill Sweeney, was accused of being “asleep on the job” while he and Premiership Rugby’s Simon Massie-Taylor were blamed for “failure on an epic scale”.

The investors, therefore, would have to pass the RFU’s fit and proper owners test and demonstrate proof of funds to be given the green light. Worcester’s new owners failed to meet the RFU’s conditions for entry into the Championship last month in a demonstration of the rigorousness of the process. Ultimately, it is also the responsibility of the RFU to suspend any club that cannot meet its