US lawyer behind London Irish bid
Consortium head Sloan had shown interest in Saracens Contingency plans being made in case club go under
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 they fail to complete an approved takeover or provide evidence that they have 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, a certified agent for Major League Baseball in the US, also ran his own athlete representation firm, between 2005-2013, and was a counsel for a 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 takeover to be complete by the deadline, there is said to be increasing frustration within both the 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-time 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 £30million, 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.”