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Welsh joins other recent recruits Alan Mahon and Paul McLaren, and believes there is enough quality in the squad to mount another promotion challenge.
BBC: Welsh keen for games at Tranmere
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Meanwhile, Burnley have released Steve Jones, Gabor Kiraly and Alan Mahon.
BBC: Burnley offer Alexander extension
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They have joined the "usual suspects" like Alan Simpson, Alice Mahon and Glenda Jackson in expressing serous concerns over the latest developments.
BBC: Analysis