Watford's future looks safe for another season after the club's shareholders agreed to a £7.5m rights issue.

Major shareholder Lord Ashcroft, who is underwriting the issue, made the proposal after the Hornets almost went into administration at Christmas.

Former chairman Graham Simpson and director David Fransen will convert existing loans to restructure the club's £8.63m debt.

That move should free up £1.5 million for the running of the club.

Watford will still have to sell players to raise funds although a fire sale is unlikely to be necessary.

A club spokesman said: "It cleans up the balance sheet for next year.

"The club will seek to raise other funds as normal but this gives the club some breathing space and means no drastic decisions have to be made."

The plans should be officially endorsed by shareholders at an extraordinary general meeting on 17 May.

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