The Rugby Paper

>> Newcastle get winding up order

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THE FINANCIAL plight of Newcastle Falcons was again in the spotlight after the club were issued with a winding-up order by the taxman.

In December, HMRC applied for a winding-up petition to be made against Newcastle Rugby Limited, the Falcons holding company.

The club paid the majority of the bill immediatel­y but left an outstandin­g balance of £100,000 to be paid off.

And when Blindside contacted the High Court on Friday afternoon there was still no notice of dismissal lodged.

But yesterday Falcons managing director Mick Hogan told Blindside the club had now settled the debt in full.

It was not the first time that the club have been in trouble with the taxman. They twice escaped winding-up orders in February and April 2016 after settling up.

The Falcons, who have lost £2.6 million in each of the last two years, also allegedly owe imagine rights payments to their leading players and fees to players’ agents.

Hogan would say only: “We have paid HMRC and can now apply to have the petition dismissed, but we don't comment on club finances.”

Earlier in the season the Falcons narrowly escaped legal acton from the Ospreys after failing to pay Josh Matavesi’s full £150,000 transfer fee on time.

They made an initial £70,000 payment for the Fijian speedster and handed over the other £80,000 only after the Ospreys threatened to take them to court.

In a bid to raise some muchneeded funds in September, the club switched one of their most attractive Premiershi­p fixtures at home to Saracens to Philadelph­ia.

The club have a long history of financial woe and this latest series of setbacks could be a reason why director of rugby Dean Richards still has not committed his future to The Falcons.

Richards was heavily linked with replacing Gary Gold at Worcester Warriors and is now believed to be favourite to take over at Northampto­n Saints next season.

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