Recommendation 21

We noted, however, that, by June 2023, three of these clubs had become insolvent before they had made any repayment of the loans of £41.9 million they had received (London Irish £11.8 million; Wasps £14.1 million; and Worcester Warriors £15.7 million).52 Written evidence we received from professional services group, Leonard Curtis, highlighted that, in 2022–23, seven of the remaining ten top–tier clubs could be classed as balance sheet insolvent, meaning they were reliant on financial support from their owners, as they were loss–making businesses.53 We therefore sought assurance from the Department that it was taking a hard line in getting the money from the rugby clubs that was still owed. It said that it would do exactly the same as with all its loans; it would do whatever it needed to do to get the maximum of taxpayers’ money back, except if its policy objective outweighed its financial objective, where it would then be a decision for ministers.54