Coventry Rugby Takeover Collapses Amid Promotion and Relegation Uncertainty

A proposed American takeover of Coventry Rugby Club has fallen through after concerns over the lack of clarity surrounding promotion and relegation between the Premiership and Championship.

House of Luxury, a US-based marketing agency that already owns a controlling stake in Welsh side Scarlets, had been in talks to buy a 55 per cent stake in Coventry. But after two months of negotiations, the company withdrew from the process last week, citing the uncertainty as the key stumbling block.

The timing of the collapse comes as the Rugby Football Union council prepares to meet on Friday to discuss whether relegation from the Premiership should be suspended. The meeting has been described as a “direction of travel” discussion rather than a decisive vote, with suggestions any final decision could be deferred.

Nick Johnston, Coventry’s chief executive, expressed frustration at the loss of potential investment. “It is double standards, plain and simple,” he said. “They will bend over backwards to help the owners of [Premiership] clubs, but want to maintain a system that actively discourages investment anywhere else.”

Coventry, who compete in the Championship, had hoped the deal would provide fresh backing to strengthen the club’s long-term ambitions. Instead, the collapse highlights the challenges facing second-tier sides as Premiership Rugby seeks to make its top-flight clubs more attractive to overseas investors.