FORMER Oxford-based rugby club London Welsh have formally entered liquidation, the Rugby Football Union (RFU) has confirmed.

The Exiles, who spent three seasons playing at the Kassam Stadium between 2012-15, announced earlier this month their intentions to go out of business.

Today the RFU confirmed the action, with the Greene King IPA Championship side handed a 20-point deduction.

A new company has been given a temporary licence by the sport's governing body to help the club fulfil its next two fixtures against London Scottish tomorrow and Yorkshire Carnegie on New Year's Day.

An RFU statement reads: "This will allow additional time to satisfy criteria for a permanent replacement company to compete in the remainder of the 2016/17 Greene King IPA Championship season.

"London Welsh now have until January 16, 2017, to supply all the necessary information for the RFU Board to decide on whether the new company can continue to operate in the Greene King IPA Championship."

Earlier this month, the Exiles said "a playing budget of £1.7million and gates at games numbering as low as 400" had contributed to a "totally unsustainable" business model.

Financial problems have affected a number of clubs at the same level, including Jersey Reds, in recent months.

Solutions to save second-tier clubs are said to have been tabled, with The Rugby Paper reporting earlier this week talks are under way for the Aviva Premiership to partner Championship sides who have no interest in promotion.

London Welsh moved to the Kassam Stadium in 2012 having won promotion to the Aviva Premiership.

Despite holding their own they were relegated to the Championship, but they bounced straight back up to English rugby's top tier 12 months later.

However, the 2014-15 campaign proved disastrous as they failed to win a match and subsequently moved back to Old Deer Park.

They have since remained at their Richmond base and will now seek to be a semi-professional outfit.

Their liquidation does not affect London Welsh Amateurs RFC, which is a separately constituted club.