London Welsh, one of the oldest and most storied clubs in English rugby, received a boost in their bid to secure their long-term survival when a winding-up order was dismissed at the high court shortly before the club announced an imminent takeover by a California-based investment group.
Representatives of Revenue & Customs told the court on Monday the club’s outstanding tax bill – the size of which was not disclosed – had been paid in full. The case was immediately dismissed with costs.
The takeover by the unnamed group is still subject to approval from the RFU but in a statement London Welsh said: “The financial security which will be afforded the club as a result of this new investment will now enable it to plan for the future with confidence and renewed enthusiasm.”
It was reported at the weekend the club owed £27,000 in rent at their Old Deer Park home in Richmond upon Thames and that the club’s players were not paid last month. London Welsh would not comment on that when contacted but the wording of their statement and reference to “planning for the future with confidence” suggests it is not a concern.
Bleddyn Phillips, the London Welsh chairman, said: “We are thrilled and very excited to be able to announce the arrival of a new owner which will provide the club with the financial strength to sustain its ambition to be not only a competitive rugby team playing in the top tiers of the game in the United Kingdom, but, equally importantly, to consolidate and enhance its social, community and amateur based activities at its spiritual home at Old Deer Park”
The Exiles lost all 22 of their league games in their most recent Premiership season in 2014-15 and conceded a record number of points despite a number of top signings such as the former England centre Olly Barkley and New Zealand’s World Cup winner Piri Weepu. During the relegation season – Welsh’s second in three years – the club bemoaned the unfairness of conditions for clubs promoted from the Championship, not least the lack of funding provided by the RFU for those below the Premiership. They campaigned for a “level playing field”, something that has yet to materialise.
Welsh returned last season to Old Deer Park, having spent three seasons at Oxford’s Kassam Stadium where they failed to attract the anticipated crowds and regularly played to little more than 2,000 people. They are one of English rugby’s oldest sides, having been established in 1885 and supplied Wales with many notable players, including seven of the famous 1971 British Lions who won 2-1 on tour to New Zealand. This is not the first time they have faced financial difficulties: in 2009 they went into administration and were saved from liquidation by an investment from the businessman Neil Hollinshead, only for the Londoner to be jailed for three counts of fraud two years later.
