Clauses to allow Cornish Pirates players to leave the club at the end of December have been lifted.
The clauses were inserted in contracts signed over the summer after concerns over the ongoing funding of the club.
Cash from owner Dicky Evans runs out at the end of the year, and the clauses were put in place should Cornish Pirates be unable to afford a professional side in 2025.
But chief executive Sally Pettipher says the club has cut its deficit this season from more than £500,000 to about £200,000.
It comes as the club backs a plan for a vote of no confidence in Rugby Football Union (RFU) chief executive Bill Sweeney.
Championship sides are unhappy with his bonus of £358,000 despite the RFU posting a record operating loss of nearly £40m and second-tier sides having not had their funding returned to pre-Covid levels of £650,000 per season.
“We’ve worked tooth and nail and what I can say is that we’re in a much better position,” Pettipher told BBC Sport.
“The break clauses have been lifted for the players and I can sleep at night.
“But that does not mean that with these background issues that we’re safe.”
