Latest on Irish from Chris Foy just now

[NellyWellyWaspy]

Alfred 'Chip' Sloan is the leader of the consortium. He is, I think, what many term as 'African American'.

Others involved are Ray Lewis, Julius Erving, Allen Iverson and Dikembe Mutombo. All also 'African American'. The fund supposedly involved represents retired basketball stars, and that is not a sport much associated with Irish Americans.

[Neils]

Revealed: Head of consortium bidding to take over London Irish is California lawyer Chip Sloan

Exclusive: The revelation comes after London Irish could become the third Premiership club to go under this season
By Gavin Mairs, Chief Rugby Union Correspondent 15 May 2023 ? 8:58pm

The man behind the US consortium attempting to buy London Irish can be revealed as Alfred ?Chip? Sloan, a former sports agent and California-based lawyer, who previously expressed an interest in investing in Saracens two years ago.

The revelation comes as the Rugby Football Union threatened the club with suspension from the Premiership if it fails to complete an approved takeover or provide evidence that it has the funds to complete next season by a deadline of May 30.

It is understood that contingency plans are being drawn up by the league for next season in case London Irish go under, with the restructuring to 10 teams set to be brought forward by a year ahead of the new professional game agreement with the RFU next year.

Telegraph Sport can reveal that Sloan is heading up a private equity fund called Nue Equity that is attempting to buy the club from owner Mick Crossan.

He is also described as a founding general partner of Acceleration Equity, a sports-focused equity group that buys and sells professional sports franchises and investments.

Sloan, is a certified agent for National Basketball Association in the US, also ran his own athlete representation firm, between 2005-13, and a counsel for Californian law firm in the area of mergers and acquisitions and sports, media and entertainment.

However, while sources close to Sloan insist that the private equity fund is on course to meet the RFU requirements for the take-over to be complete by the deadline, there is said to be increasing frustration within both RFU and Premiership Rugby that the necessary details have yet to be provided.

Three former US basketball players, Julius Erving, Allen Iverson and Dikembe Mutombo, as well as Ray Lewis, a two-times NFL Super Bowl winner with Baltimore Ravens, are said to be involved in the ?leadership group? but there has been no clarity provided to the governing body as to whether the quartet are merely ambassadors or providing equity themselves.

The secrecy behind the consortium has only served to heighten concerns within the London Irish playing group and staff about whether the sale of the club, which has debts of over ?30 million, will go through.

Howard Thomas, the former PRL chief executive, who had been tasked with leading the negotiations has only added to the confusion as he works for a company called Redstrike, which is part of the Miami-based investment fund 777 Partners.

Last month Crossan had to step up at the 11th hour to prevent the players from serving the club with breach-of-contract letters after their salaries for April were not paid for six days despite daily promises that funds from the US, via a bridging loan, would be transferred.

The level of distrust in the playing group reached such a low point that the players demanded written evidence that medical insurance cover known as Rugbycare', was in place before they would take part in their final game of the season, against Exeter Chiefs. Premiership Rugby also underwrote the insurance cover ? having been prepared to advance funds to cover the premium, which reassured the players.

Crossan?s intervention was designed to ensure there was ?breathing space? for the deal to go ahead after the club came under pressure from the Rugby Players? Association to resolve the issue.

The fact that there is still no sign of those funds landing, nor proof of funds and other information required for the takeover to be approved by the RFU, has heightened fears that Irish could become the third Premiership club to go under this season, following the demise of Wasps and Worcester Warriors.

The fate of Irish will be key to Premiership Rugby?s plan to restructure the league to a 10-team competition. ?The proposed takeover of London Irish by an American consortium has led to a significant amount of uncertainty and speculation about the future of the club, which is having an impact on players, staff, and fans of the club,? said the RFU.

?As a result, the RFU, Premiership Rugby and the RPA are seeking to take action to obtain greater clarity on the future of London Irish. ?It is imperative that the club will be in a position to take its place in the Gallagher Premiership in season 2023/24, and to complete that season.

?This deadline (May 30) was set to give enough time for the buyers to provide the information needed and for the transaction to complete.?

[Neils]

And Guardian -

London Irish at risk of Premiership ban after RFU sets deadline for takeover

    RFU tells club to complete proposed takeover by 30 May
    Fears of third top-flight team expulsion in eight months

Gerard Meagher
Mon 15 May 2023 19.39 BST
Last modified on Mon 15 May 2023 21.28 BST

London Irish will be suspended from next season?s Premiership unless the proposed takeover by a US consortium is completed by 30 May or the club provides proof of funding for the entire 2023-24 campaign, the Rugby Football Union has warned.

The ultimatum from the RFU comes amid fears the protracted takeover will drag on over the summer and into next season, and heightens the prospect of a third club being thrown out of the Premiership in eight months.


The RFU cited the need for certainty for players, staff and fans of the club and, although insiders have been hopeful the takeover will be completed, the RFU?s intervention is a deeply worrying sign given the impending deadline.

For Irish to avoid being kicked out of the Premiership, the takeover must be completed and approved by the RFU with the buyers undertaking to provide all required working capital to meet the club?s obligations for at least next season.

Failing that, the Exiles must demonstrate capacity to fund the club next term. Expulsion would be a colossal blow for the Premiership given the demises of Wasps and Worcester this season.

This month the current owner, Mick Crossan, finally stepped in to belatedly pay the players? April wages after the delay led the squad to consider boycotting their final match of the season, to demand physical proof they were insured to take part in it and to consider submitting breach-of-contract letters.

It remains to be seen if Crossan can continue to fund the club next term if the takeover is not completed before the RFU?s deadline, given Irish have debts of around ?30m and he has been looking to sell all season. That they are tenants of the Gtech Community Stadium makes them a less attractive proposition for investors, though their state-of-the-art training centre in Sunbury is an impressive asset.

Well-placed sources have expressed considerable scepticism that the takeover will go through, not least because financial clouds have been looming over Irish since October when staff members began actively seeking alternative employment. Against that backdrop their fifth-place finish was all the more impressive, but a trying campaign has taken its toll and the relief following their final match was apparent.

The RFU is evidently desperate to avoid a repeat of the Worcester situation, so too Premiership Rugby which, along with the union and the Rugby Players? Association, has been applying pressure on Irish to provide certainty.

There is desperation to avoid another club going bust even though a 10-team league has been identified as the optimal solution from 2024 onwards.
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Worcester?s problems surfaced last summer but they were allowed to begin the 2022-23 season, only to be thrown out in October. Wasps soon followed, plunging the Premiership into crisis.

An RFU statement read: ?If the club fails to meet these conditions it will be suspended from participating in the Premiership [and other competitions] in season 2023-24 to avoid a scenario where the club enters insolvency mid-season, with the corresponding and substantial impact that has on players, staff, and fans, as well as on the remainder of the league.?

The RFU went on to say that the deadline was set ?to give enough time for the buyers to provide the information needed and for the transaction to complete? but the clock is ticking, given that leaves the buyers only 10 working days. All the more so because the RFU is also under pressure to complete its due diligence after the chief executive, Bill Sweeney, was accused of being ?asleep on the job?.

Sweeney and Premiership Rugby?s Simon Massie-Taylor were blamed for ?failure on an epic scale? at a parliamentary inquiry into the demises of Worcester and Wasps.

[NellyWellyWaspy]

As mentioned, it is the secrecy within those funds that is the issue that the RFU have. It was the same with the Atlas - Warriors purchase.

These funds are offshore (outside the gaze of US tax authorities) and the uber rich do not want the US tax authorities finding their money, as US citizens are required to declare all earnings worldwide, but many (most?) rich Americans do not, thus illegally avoiding tax. Most of them have Trumpesque tax returns (almost NIL), which is clearly nonsense.

Now that the RFU are clamping down on who owns what, it is highly unlikely they would approve US 'based' fund ownership. One, it is not actually US based (more likely Bermuda), second, it is far from transparent as to where the money has and is coming from, and third, the beneficial 'owners' of the fund tend to hide behind third party individuals in (for example) Bermuda, which are merely fronts.

Money laundering anyone? It's the Russians buying Football League clubs all over again. I am amazed the RFU is appearing to be righteous about this, but, I have no problem with their stance. No more dodgy South African vineyards, really owned by goodness knows who (but I suspect Russians).

[baldpaul101]

The fund supposedly involved represents retired basketball stars, and that is not a sport much associated with Irish Americans.

The Boston Celtics were pretty good a long time ago, but I get your point 

Wonder whether Crossan might sign up for another year if the deal can't be done in time?
The description of the potential new buyers & their inability to get the finance sorted over the last two months is not exactly a recommendation to the RFU is it?

[Neils]

IRFU stepping in to save London Irish could be the perfect solution

If proposed American takeover fails then Irish becoming 'fifth province' once again makes sense for all concerned
Gavin Mairs
Chief Rugby Union Correspondent
17 May 2023 ? 8:00am



Could the answer to London Irish?s long-term future lie across the Irish Sea rather than the Atlantic? For now, it remains a hypothetical question.

A takeover by an American consortium, led by Californian lawyer Chip Sloan and backed by a private equity fund called Nue (in the process of being rebranded as True) is said to remain on course.

But with just 10 working days to the Rugby Football Union?s deadline for the deal to be approved and completed before the club are suspended from the Premiership next season unless they can prove they have the required funds in place, there is said to be a growing sense of dread within the playing group.

As of Tuesday, there was still no sign of proof of funds or other information critical to the takeover being approved by the RFU as part of its ?fit and proper? person test and due diligence.

The only track record to go on so far is that Sloan was previously in discussions with Saracens a couple of years ago, which stalled when former chairman Nigel Wray was seeking investment in the club. Wray would eventually sell the controlling interest to Dominic Silvester in a ?32 million takeover in June last year.

Given that the London Irish staff and players had been told the bridging loan required for the takeover to go through would be in place last month, only for the April payroll date to be missed, forcing owner Mick Crossan to pay their salaries, the sense of uncertainty is understandable.

Agents of London Irish players are understood to be already exploring potential options at French clubs as the only realistic transfers given Premiership salary-cap restrictions. Even if not all Premiership clubs have spent to the cap for next season, for those who have not there is little appetite to add to salary costs.

One can only hope it does not come to that. The staff and players deserve so much better, having punched above their weight to finish fifth in the Premiership this season. But at times like this, it is more about people than points. These employees all have financial commitments, and many also have financial dependents.

As the RFU said in a statement on Monday, the proposed takeover had led to ?a significant amount of uncertainty and speculation about the future of the club, which is having an impact on players, staff and fans of the club.? Just imagine the impact if the club go under.

There is history at stake here, too. London Irish were formed 125 years ago, first with the intention to ?provide a home from home for wandering Irish men and women regardless of creed or politics and a welcoming and hospitable venue to entertain rugby players and supporters from all over the world?.

Its academy has long been regarded as one of the finest in England, and boasts a rich history of developing international players even if the club have often not had the resources to retain them.

At certain periods, the club have also been home for Ireland internationals based in England.

Indeed, it was the decision by the club to sign a host of Irish internationals, including Saracens director of rugby Mark McCall and the RFU?s professional rugby director Conor O?Shea, when the game turned professional in 1995 that would force the Irish Rugby Football Union to embrace professionalism, using their provincial system to eventually bring their players ?back home?.

Which brings us to the IRFU. The plight of what once was known as the ?fifth province? must surely have not gone unnoticed in the offices on Lansdowne Road.

At a time when David Nucifora, the IRFU performance director, has spoken about the need to create more playing opportunities for the bottleneck of talent within the Irish academy system, taking control of London Irish if the American deal does not complete could provide a perfect solution.

Five years ago, the Scottish Rugby Union looked at taking a 20 per cent stake in Newcastle Falcons, having also considered buying Worcester Warriors, so there is something of a precedent here, although any move would have to be agreed and welcomed by the RFU.

If such a move might require a loosening of the English-qualified system if the IRFU wanted to bring through their own players, the upside for the Premiership is that it could bring a vibrancy to the club and tap into the exile community to a greater extent that the current club have been able to do so.

Those who remember the season when Irish were able to field a nearly all-Ireland international side in the 1990s would testify to that sentiment. Irish sponsors and investors could also be attracted to shore up the finances.

The IRFU offered a diplomatic response to the question. ?We are aware of challenges faced by some clubs and hope that they can be resolved with a positive outcome for all involved, especially the players, staff and supporters,? an IRFU spokesman said. ?The IRFU is not currently contemplating investing outside of Ireland.?

The RFU, when also contacted to see if there would be any objection in principle to the IRFU investing in the club, also offered a tactful response saying only that it would not speculate.

[baldpaul101]

That article seems full of nothing but wishful thinking.
Presumably any investment would come at the cost of IRFU investment in Irish rugby, which is unlikely to go down well
Can't see the RFU being very happy at another governing body getting involved either, and they would have to sanction it.

can't see it happening personally.

If the US buyout doesnt happen, which also looks unlikley IMO, I expect poor Mick Crossan to end up having to fork out for another year. From what LI supporters say about him he seems a genuine fan, I can't see him watching LI go down the pan.

[Neils]

That article seems full of nothing but wishful thinking.
Presumably any investment would come at the cost of IRFU investment in Irish rugby, which is unlikely to go down well
Can't see the RFU being very happy at another governing body getting involved either, and they would have to sanction it.

can't see it happening personally.

If the US buyout doesnt happen, which also looks unlikley IMO, I expect poor Mick Crossan to end up having to fork out for another year. From what LI supporters say about him he seems a genuine fan, I can't see him watching LI go down the pan.

It all depends how his personal finances are.

[Sliminator]

Can't see the RFU PRL loosening the EQP rules for matchday squads seeing as they have been going down the route of tightening them of late.

[NellyWellyWaspy]

That article seems full of nothing but wishful thinking.
Presumably any investment would come at the cost of IRFU investment in Irish rugby, which is unlikely to go down well
Can't see the RFU being very happy at another governing body getting involved either, and they would have to sanction it.

can't see it happening personally.

If the US buyout doesnt happen, which also looks unlikley IMO, I expect poor Mick Crossan to end up having to fork out for another year. From what LI supporters say about him he seems a genuine fan, I can't see him watching LI go down the pan.

^^ This

A total space filler from a journo who must have been on something when he wrote it.

[baldpaul101]

It all depends how his personal finances are.

True, but given he seems happy (allegedly) to sell for ?1 & keeps paying the wages, he doesnt seem in need of cash (google says he was worth ?45 m in 202) The stories all seem to be around he's just had enough & thinks someone else needs to pick up the baton.

[andermt]

It all depends how his personal finances are.

True, but given he seems happy (allegedly) to sell for ?1 & keeps paying the wages, he doesnt seem in need of cash (google says he was worth ?45 m in 202) The stories all seem to be around he's just had enough & thinks someone else needs to pick up the baton.

Being happy to walk away from monies owed is different to ploughing in even more with little chance of seeing it again. Perhaps he has reached his maximum.

[Bloke in North Dorset]

And you have to wonder what?s in it for new owners, especially a fund that needs to see a return, if the current owner can?t even make it wash its face.

What insight could they bring to turn round that he and his advisers haven?t seen?

[Neils]

And you have to wonder what?s in it for new owners, especially a fund that needs to see a return, if the current owner can?t even make it wash its face.

What insight could they bring to turn round that he and his advisers haven?t seen?

Especially as they look like being booted from Brentford.

[NellyWellyWaspy]

London Irish players talking to other teams amid fears club will go under
Exclusive: French clubs circling with proposed takeover by American investor Alfred 'Chip' Sloan running out of time

By
Gavin Mairs,
 CHIEF RUGBY UNION CORRESPONDENT
21 May 2023 ? 3:46pm
London Irish players are understood to be in talks with other clubs, mainly in France, amid mounting fears there is little hope of a takeover by a US consortium going through in time to save the club.

Irish, who have debts of more than ?30million, have been set a deadline of May 30 by the Rugby Football Union to prove that they have completed an approved takeover, or provide evidence that they have the funds to complete next season. If they cannot meet that deadline, they will be suspended from the Premiership, becoming the third club lost to the competition this season.

Telegraph Sport revealed last Monday that the man behind the US consortium attempting to buy the club is Alfred 'Chip' Sloan, a former sports agent and California-based lawyer, who expressed an interest in investing in Saracens two years ago. Sloan heads up a private equity fund called Nue Equity, which is being rebranded as True Equity, that is attempting to buy the club from owner Mick Crossan.

However the RFU and Premiership Rugby have yet to receive any proof of funds and other details required for the fit and proper person test and due diligence and there is little confidence among senior figures that the club will be saved from going under ? the fate suffered by Wasps and Worcester earlier in the season.

Players cannot leave the club until it has been proved that the club is in breach of contract, however it is thought that some may have already signed "pre-contracts" with new clubs that will come into effect if Irish go to the wall.

"Everyone is chatting to other clubs," said a source close to the players. "France is the most likely destination because with play-off games all in the next few weeks, the clubs that are going up and down will be known and then they will be finalising squads."

There will be few options for players to move to other Premiership clubs as those with the financial resources to pay them will have already spent their salary cap for next season and those who still have some wiggle room do not have the appetite to increase their salary bill.

It is understood there has been no further update provided to the players about the status of the takeover.

"The only response given to those who request to settle their outstanding invoices is that the club are not in a position to do so now but fully expect to be able to in the very near future," said another source.

Premiership Rugby was already planning to reduce the league to 10 clubs for the start of the 2024/25 season (from 13 at the start of the 2022/23 season) and are drawing up plans to fast-track that for the start of next season if the deal with Sloan's consortium does not go through.

A source close to the consortium said there was still a huge amount of work going on behind the scenes and that it was always likely to take until the end of May to complete.

It is understood that Sloan's interest in Saracens, which came when Nigel Wray was seeking investment, quickly stalled, with Wray eventually selling the controlling interest to Dominic Silvester in a ?32 million takeover in June last year.

The only other possible salvation for London Irish is if the Irish Rugby Football Union, who have stated their desire to create more playing opportunities for the bottleneck of talent within the Irish academy system, step in to take control of the club. That scenario however would require approval by the RFU, and would bring a host of complex issues to resolve, including England's elite player squad agreement and English-qualified player payments.

Crossan was forced to pay the club's salaries for April to prevent the players from serving the club with breach-of-contract letters after they were not paid for six days despite daily promises that funds from the US, via a bridging loan, would be transferred.

The intervention was designed to ensure there was "breathing space" for the deal to go ahead after the club came under pressure from the Rugby Players' Association to resolve the issue.

Now, with just six business days left for a deal to be approved, it seems it is going to go right to the wire.