London Welsh, an England rugby club, continues its run in the sport following a successful financial takeover last Monday. However, the team will have to start the next season with five-point deductions due to financial troubles.

The Rugby Football Union (RFU), the governing body in England rugby, gave the penalty on the longstanding club recently. Despite this sanction, the union is satisfied with the terms specified in the takeover made by Red Dragon Rugby Limited, the new team owner.

RFU said in a statement that London Welsh is believed to be solvent once more after the financial takeover and has gotten the green light to continue playing next season.

The union then instructed the new owners to settle about 450,000 pounds to the existing creditors to show proof that it is capable of financing the club for the next couple of years.

The club’s shareholders and board have already written off debts amounting to 1.3 million pounds during the takeover. This was revealed by administrator Tenon Recovery.

Gareth Roberts, Tenon spokesman, said that London Welsh will also have private individuals as shareholders.

The London Welsh club was founded in 1885.