The Exiles appointed Liquidators in December 2016 and were granted a temporary licence to continue playing in the second-tier of the professional game in England. But now the RFU has determined the club’s position is “untenable” after it failed to convince the governing body of a viable financial future.
“It is deeply regrettable that we should arrive at this point, but with London Welsh in liquidation and unable to satisfy conditions to compete in The Greene King IPA Championship as a professional club, participation in the competition became untenable,” said RFU Chairman, Andy Cosslett.
“We know this will be an extremely disappointing day for everyone connected with London Welsh, including players, staff and supporters, and the sadness at the loss of this club from the professional ranks will be shared throughout the game.”
The temporary licence granted by the RFU to London Welsh (via a “Phoenix Entity”) to continue playing Championship matches expired on 21 January. The conditions required by the RFU regulations to allow the club to continue to participate in the competition after this date have not been met – despite the RFU granting two extensions to deadlines.
The decision was, therefore, taken that London Welsh will no longer be granted permission to play in Championship for the remainder of this season and beyond. This decision does not affect the position of London Welsh Amateur RFC, which will continue as a voting member of the RFU.
London Welsh Rugby Football Club Limited (“London Welsh”) went into liquidation on 23 December, 2016, and accordingly its membership of the RFU ceased, with the liquidator confirming that London Welsh would not continue to fulfil its fixtures.
On 21 December, 2016, Rugby 1885 Limited (the “Phoenix Entity”) was granted a temporary licence to take the place of London Welsh in the Championship for two matches on 24 December, 2016, and 1 January, 2017. The temporary licence granted to the Phoenix Entity expired on 21 January, 2017.
The temporary licence was granted to allow those involved in the Phoenix Entity additional time to satisfy all the conditions required in RFU Regulation 5 which would allow the Phoenix Entity to take over the position of London Welsh in the Championship on a permanent basis.
The RFU gave the Phoenix Entity a deadline of 16 January to satisfy these conditions. The RFU Board met on Tuesday, 17 January to review this information and consider whether it satisfied the criteria set out in RFU Regulation 5.
On the basis of the information provided at that meeting, the Board could not conclude it was satisfied, but agreed to give the Phoenix Entity an extended deadline of 10.00am on Friday, 20 January to provide the following additional information:
- Payment of a bond and evidence of funds to pay all rugby creditors;
- further clarity on the Phoenix Entity’s business plan;
- a satisfactory governance structure to show separation between the Phoenix Entity and London Welsh Amateur RFC.
The Board met again on Friday, 20 January to review the situation and considered all information provided by the Phoenix Entity. The bond had not been lodged by this time, and the RFU was not provided with evidence showing that there was cash immediately in place to pay the Rugby Creditors in full. The RFU granted a further, final extension to the deadline to satisfy the conditions of Regulation 5, but this deadline expired at 10.00 am today (24 January).
Therefore, the RFU Board has concluded that the Phoenix Entity has not satisfied all conditions required and the Phoenix Entity will not be granted permission to participate in the Championship for the remainder of the season and beyond.
