London Welsh saved after Tenon brokers deal

London Welsh has been rescued from administration after insolvency specialists at Tenon brokered a solvent exit for the troubled business.

The club, founded in 1885, has completed a deal with Red Dragon Rugby Limited after negotiations were handled by administrators from Tenon Recovery.

The Rugby Football Union only allowed the sale of the club’s shares to RDRL after the new owners demonstrated that sufficient funding was in place for the next two seasons. London Welsh will now be able to compete in the Championship, the second tier of English professional rugby.

Directors and other shareholders have agreed to write off £1.3m in debts to ensure the sale, but £450,000 owed to other creditors has been underwritten and will be paid in full.

Gareth Roberts, a director at Tenon Recovery, said: 'We have seen considerable interest in London Welsh from potential investors in the last few weeks as a result of its long and proud history and its aspirations for the future.

'We hope that this will offer the best long-term scenario for the club, players and fans while preserving the club’s unique values and heritage, and we are particularly pleased that we were able to hand over a solvent company to the new owners.

'I would also like to express my appreciation to the RFU for their support during the entire process.'

John Dawes, club president and captain of the 1971 British Lions, added: 'This is a great outcome and reflects the vital role that the club has, and will continue to play, in both English and Welsh rugby. The new Championship offers us some fantastic opportunities and we look forward to enjoying another successful season.'