A former managing director of London Welsh has expressed his confidence that a takeover aimed at saving the club from insolvency will be completed.
The Exiles face a second winding-up order hearing at the high court on Monday, less than two months after they announced that a sale and purchase agreement had been signed for their acquisition by a “major Californian-based investment group” – which the Guardian has learned is the Phoenix Group – aimed at securing London Welsh’s long-term financial security.
Their most recent set of accounts showed losses of almost £1.2m, with the club owing £855,764 to creditors within a year and £1,007,628 to longer-term creditors.
However, the future of one of one of the oldest clubs in English rugby appears uncertain again. A source at the Rugby Football Union has confirmed that they have not received an application from London Welsh for the takeover while insiders at the club have also expressed their scepticism about the desire of Phoenix Group, or any other organisation, to secure control of the Championship club.
But, speaking to the Guardian, John Taylor, the former Wales and British Lions flanker and London Welsh managing director between 2009 and 2013, insisted the takeover is real enough and, having confirmed Phoenix Group is the interested party, said it remains likely to go through.
“There is some uncertainty around it still and my understanding is that it revolves around the sale of a big company to Chinese investors,” he said. “The delays and the uncertainty [are] very definitely about the transaction on the sale going through.”
Taylor is taking a “backseat” role in the takeover after being one of those involved in the 2009 purchase of the club by Neil Hollinshead, who was jailed in 2014 for defrauding the club when it hit financial difficulties. Taylor is still involved behind the scenes in planning for the west London club’s future, which Welsh said could be done “with confidence and renewed enthusiasm” upon announcing the acquisition.
An earlier winding-up order was dismissed on 5 September after the club paid its debt to HMRC and it was thought at the time that the Phoenix Group had put forward the cash. However, an anonymous email, which came from a source close to one of the board members, alleged that this amount, claimed to be £140,000, was paid by one of the club’s mini rugby coaches. The Guardian contacted London Welsh regarding the takeover but a club spokesman declined to comment.
.jpg?w=600)
