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.”
Pettipher says the increased income is down to the hard work of people at Cornish Pirates and means it is likely the club will be able to play as a professional side until the end of the season.
Talks are ongoing with a number of parties regarding a takeover of the club – although uncertainty over the future of the second tier beyond next summer means it is difficult for any new owner to commit until they know what sort of central funding the club will have.
“I wish I could number off the number of conversations I have had,” Pettipher added.
“I’ve been introduced to Cornish people who don’t want Pirates to die, I’ve been introduced to international people who think we’re a fantastic brand.
“I’ve been introduced to people who can help us generate more revenue, I’ve been introduced to people who would like to put personal backing behind the club.
“Which ones of those have said ‘yes’, ‘no’ and ‘maybe’ is not yet a discussion that I can have, but I sleep better at night.”