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London Welsh saved by takeover but then suffer five-point penalty
Chris Jones20 Jul 2009
London Welsh have been rescued after a takeover which will inject more than £1.5million into the club.
The club went into administration a month ago and faced the prospect of reverting to amateur status unless they could find a new backer.
However, they have now been bought by investors Neil Hollinshead and Lea Adams under the banner of Red Dragon Rugby Limited with the deal being approved by the Rugby Football Union.
It means London Welsh will be able to play in the new Championship next season although they will start the campaign with a five-point penalty. The new owners proved to the RFU they had the funds to run the club for at least two years and that any creditors, bar shareholders and directors, could be paid.
Hollinshead is involved with Saudi investment company Saudex Group which invested around £750,000 in London Scottish but this is a separate deal with his funding being on a private basis. Adams is chief executive of Slick Systems, which builds stands at stadium but again his involvement is on a personal level.
Former chairman Kelvin Bryon has retained a five per cent stake in the club after writing off around £1m he is owed.
Reader views (1)
While wishing our neighbours and fellow Exiles a long and happy future ... on a matter of fact please note that despite the huge sums we keep seeing quoted in the media, the Saudex Global sponsorship of London Scottish for last season was for £50,000 and that less than that sum was actually received. Paul McFarland, Assistant Secretary, London Scottish
- Paul Mcfarland, Richmond, 22/07/2009 14:24
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