London Welsh RFC 'fraud': RFU changes rules

[TRF_Cymro]

English rugby chiefs have confirmed they have strengthened their regulations on club finances following allegations of forgery and fraud in the sale of London Welsh Rugby Football Club.

The Rugby Football Union told BBC Wales' Week In Week Out programme that they tightened their procedures in the wake of financial problems at the famous West London club.

Talking publicly for the first time about the allegations against him, Neil Hollinshead, the former owner of London Welsh, claims he was let down by others after promising £2.6m would be invested in a link up with a Saudi Arabian prince.

The money, promised in 2009, never appeared and a club best known for providing many of the stars of the 1970s became involved in a bitter battle for control.

According to John Taylor, former Wales and London Welsh player, and managing director of the club: "The excuses started to wear thin within a couple of months ...then it's fair to say that we became very worried and by the end of the year we discovered the worst.


"We had to take action ...and it became evident that he had no money to put into London Welsh and he was ordered to rescind the deal."

In June 2009, when London Welsh was facing financial difficulties, it was placed into administration.

Businessman Neil Hollinshead, and his company Saudex Global, emerged with a multi-million pound offer of investment and the club was saved.

Mr Hollinshead gained ownership of the club, but after several months of waiting the money he had promised failed to materialise.

Officials at the club took legal action to regain control of the club.

Court documents obtained by Week In Week Out reveal that Neil Hollinshead is alleged to have submitted forged documents and fake bank account details in order to continue his control of London Welsh and that he repeatedly lied to ensure that ownership of London Welsh was transferred over to him.

The programme tracked down Mr Hollinshead in Dubai.

He said: "The investment in terms of the bridging money I was trying to get - I can't go into too much because there's an ongoing case in the UAE about it at the minute - but the funds were not forthcoming, and the more I chased and was promised...it was not forthcoming."

The club is now back in the hands of its previous owners, and - now in its 125th season - it is competing in the play-off stages in the English Championship.

After the financial collapse at London Welsh, and also problems at several other Championship clubs, the RFU told Week In Week Out that they have now strengthened their regulations.

An RFU spokesman said: "What we learned from that was a wider lesson and we have made changes - not to our due diligence process but to our financial governance process of clubs in that level. What we now require all clubs in that league to do is give us quarterly accounts."

One legendary player of the 1970s sees the recent problems of London Welsh as a cautionary tale for a fledgling professional sport.

Former London Welsh, Wales and Lions player Gerald Davies said: "In the long history of professional sport rugby is an infant.

"There have been teething troubles and I should fancy there will be more teething troubles for all of rugby in years to come."

Week In Week Out is broadcast on BBC One Wales on Tuesday 29 March at 2235 BST.

http://www.bbc.co.uk/news/uk-wales-12888031​

 

[Jayatron]

Interesting piece. I have heard a lot of rumors about the English RFU Championship sides. I've heard that a lot of them are really struggling with the new professionalism introduced a few years back. The gap between the premiership and the championship is to big at the introduction of professionalism in the championship is the right move, however someone needs to step up and take charge of the league. It's been three or so years now and still no main sponsor and no media coverage, so no real sponsorship or advertising income.
I know some clubs like Worcester, Cornish pirates, Bedford and the likes are doing fine but a lot of others teams, around half, are struggling to come to terms with it.

I've also read that a lot of these championship sides would not be able to gain promotion to the premiership because of money restrictions and stadium restrictions. I hear Deer Park would not meet requirements.

 

[TRF_Cymro]

I don't think some of the clubs you have mentioned are doing as fine as you think.

As for lack of media coverage, there is some but not enough. Every so often games appear on Sky and there is press coverage in The Rugby Paper but again its limited.

A reason for why there is no real sponsorship is because the league is not attractive enough. What I mean by this is the fact that one team goes up for promotion. If you had one automatically promoted and one play off place promotion and two go down in the Avia Prem you might see a better increase in the standard of play and also because the league is more competitive people will invest in it.

 

[Jayatron]

Yeah the coverage is very limited. I know sky committed to showing X amount of games a year but i've only ever seen two.

So what have you heard about the financial situation of these clubs??

 

[TRF_Cymro]

Yeah the coverage is very limited. I know sky committed to showing X amount of games a year but i've only ever seen two.

So what have you heard about the financial situation of these clubs??

That its not rosey. Only Worcester are really stable but are making a small loss. The league needs investment and so do the clubs to compete with the likes in the Aviva.

 

[psychic duck]

I don't think some of the clubs you have mentioned are doing as fine as you think.

As for lack of media coverage, there is some but not enough. Every so often games appear on Sky and there is press coverage in The Rugby Paper but again its limited.

A reason for why there is no real sponsorship is because the league is not attractive enough. What I mean by this is the fact that one team goes up for promotion. If you had one automatically promoted and one play off place promotion and two go down in the Avia Prem you might see a better increase in the standard of play and also because the league is more competitive people will invest in it.

agree with that, there is a huge gap between the bottom of the Premiership and top of championship to the mid-bottom of the championship

 

[Teh Mite]

Even the Premiership clubs make a loss. This year I think only Tigers and Saints turned profit while Gloucester broke even (Sarries lost a whopping £6million!)

More investment and promotion of the club game and less obsession with Twickenham will only turn that around.

 

[munstermuffin]

Must say my first full championship game watching was last game between Worcester and Bedford and it was one of most enjoyable games. Hope there is more coverage given

 

[TRF_Cymro]

The Championship is a good league, some very good players there also.

Exposure is the key, if more games were covered that would be a step in the right direction.

 

[munstermuffin]

In fairness how could they trust a Saidi Prince

 

[TRF_Cymro]

Man City

 

[Nielsch]

In fairness how could they trust a Saidi Prince

Exactly. Would have been a completely different story if it was a Nigerian prince.