London Irish administrators were forced to sell the club at a knockdown price after former frontrunner Daniel Loitz repeatedly failed to complete a deal, City AM can reveal.
Sources close to the deal said Loitz, a German businessman, had months – including an exclusivity period – in which to finalise a purchase with the ReSolve Group, which was appointed when former owner Mick Crossan put London Irish into administration in 2023. Both ReSolve Group and Loitz have previously confirmed that proof of funds were supplied.
But it is understood that Loitz and his firm, Hokulani Limited, were given multiple chances to close the deal – amid claims of celebrity co-investors being lined up – but to no avail.
It therefore forced ReSolve to take a lower offer for the club’s IP from Eddie Jordan’s Strangford Ellis Ltd consortium, managed by Jordan Associates. Jordan’s bid does not include the Hazelwood training centre.
Chelsea, NFL, London Irish?
Formula 1 entrepreneur Jordan’s group could return to negotiations for the training centre having purchased the club, which was put into administration by Crossan with debts of around £30m.
It is understood that sports clubs including Chelsea have held discussions surrounding Hazelwood, which has been used as a base for travelling NFL teams in the past, but ReSolve refused to confirm.
The administrators did say, however, that “after the passing of so much time they had to transact with a party ready to transact”.
ReSolve added that it “had to make a decision, not in isolation” and that “Strangford had been diligent the whole time”.
They paid good money for an asset that could have been Loitz’s, they said.
Loitz’s best wishes
“Hokulani Limited formally announces its decision to withdraw from the acquisition process of London Irish [IP and Brand] and the Hazelwood training ground, despite our longstanding interest and confirmed status as the ‘preferred bidder’ presented to the creditors, supported by two certified proofs of funds,” Loitz said on social media on Tuesday.
It is understood that Loitz was served with a final, 24-hour notice in recent days to complete the deal, something that his firm did not adhere to.
It leaves London Irish in a position to return to professional rugby, though Jordan’s consortium has mooted a potential look towards the United Rugby Championship rather than the English pyramid.
Daniel Loitz told City AM: “[I give] all the best from the bottom of my heart to the London Irish supporters as well as Mr Jordan and his fellow investors.”
Analysis
The future of the Hazelwood training facility remains uncertain, though London Irish Amateur RFC have a lease for the location, something any new owner – Strangford Ellis Ltd or otherwise – will need to consider.
Assessing the deal Michael Lynch, a restructuring and insolvency partner at law firm DMH Stallard, said: “The purchase of the London Irish intellectual property and rights generally shows that, even after nearly two years since entering administration, value can be found out of a formal insolvency process.
“Even when the end of London Irish looked certain, the insolvency regime in this country, often unfairly maligned, can allow businesses central to the community to rejuvenate and reform.”