| Club Statement (for shareholders, via email) 19:44 - May 27 with 26297 views | IOMDale |
Apologies if this is discussed elsewhere but the club have issued this statement tonight:
Rochdale AFC & Denehurst Park (Rochdale)
STATEMENT FROM CHAIRMAN ANDREW KELLY AND THE BOARD OF DIRECTORS TO RAFC SHAREHOLDERS
1. Update on Recent Developments
Ahead of the AGMs and EGMs to be held on Tuesday 1st June 2021, the board of directors would like to update shareholders with some important information.
Over the last two years, the board has held the view that to move the club forwards there is a need for outside investment. To have done nothing would have been negligent and would have placed the continuing existence of our proud football club at risk.
The Covid-19 pandemic has reset the world financially and, as a result, sustainability in the world of football is more challenging than ever. Even before that, as a Football Club operating at an elite level of professional football, we could not compete and thrive without the injection of significant amounts of money that are not open to us in the traditional way that we have been funded for 114 years.
We are currently one of less than ten percent of Football League clubs that isn’t owner-funded or major shareholder-controlled.
As a responsible board representing the Dale shareholders, who number over 300, we have looked at many outside parties who have presented varying levels of interest and associated proposals to become that new owner/investor.
Until very recently, none of the proposals tabled have been sufficiently detailed, credible or funded to a level necessary to ensure that the club is stabilised and developed to move us forwards.
The current board, in line with the wonderful previous board custodians over the past 114 years, only have the interests in the development and success of the club at heart and would not contemplate entering into an agreement that could potentially take us down the unsustainable path that other football clubs have sadly found themselves on.
Furthermore, the stringent tests now imposed by the EFL, with regards to owners and directors, are in place to ensure that such unsustainable situations like at those other clubs will never arise again. Not only is proof of funds required for any potential new owners and shareholders, but there are requirements to demonstrate how those funds were acquired and how they will sustain the club going forward. All of the parties that we are engaged in talks with fulfil those EFL requirements.
There has been a concentration by the board in the last four months to bring a conclusion to talks with genuinely interested parties that, if they were to acquire the club, would be to the betterment of RAFC. Commensurate with that, there has been a period of exclusivity with one interested party.
All parties involved wish to continue negotiations and due diligence in a confidential manner which is out of respect for the club. As a responsible board, we understand and respect this situation, but suffice it to say that throughout all the recent and continuing negotiations, we have been greatly impressed by the professional and knowledgeable approach taken at all times.
We can report that the level of investment and the short, medium and long-term plans that have been put forward represent something that this board has been seeking and the club has been in need of for several years.
We are aware of the current criticisms levelled at the existing board, but any potential new owners have confirmed that there will be a new structure introduced throughout the club should the negotiations continue to a successful conclusion. This new structure will be put in place as and when a full assessment has been concluded.
Relegation to EFL League 2 will undoubtedly influence important and immediate short-term planning but has not diminished the enthusiasm and desire to stabilise and develop RAFC over the next 5 years and to press the reset button to bring the club into the modern, post-covid, football world.
The plans discussed to date have featured greatly the urgent need to invest in Club facilities. Primarily, this includes developing first team training facilities, which can ideally become a first team, Academy and Community complex.
The second area of requirement is to invest in stadium refurbishments, both for football and non- football related development, with the third area of investment in on-the-field matters to achieve our ambitions of an immediate return to League One and to achieve greater sustainability as a football club.
At all times during the ongoing negotiations, we have been impressed by each party’s total understanding and respect for the fact that the supporters are the lifeblood of any football club.
2. The Next Steps
Due to the existing constitution of Rochdale Association Football Club Limited, there is currently no practical method of introducing the level of funding and associated control that is a pre-requisite of further negotiations.
This situation arises out of the fact that the present shareholding is so diverse, with the single largest holding representing only 21.87% of the current issued share capital.
In order to allow negotiations with the interested party to be taken to the next level, Resolutions 1, 2 and 4 need to be passed by shareholders at the EGM on 1st June.
Resolution 3 has previously been within the control of the board, but the authority to issue these shares expired in 2016, and was not renewed at that time.
Resolutions 1 and 2 would ensure that any investment will come directly into Rochdale AFC through the issue of new shares. If the board is unable to issue new shares, prospective shareholders could instead approach individual shareholders, which would see significant shareholdings being acquired with monies not benefitting the football club. This has happened in the last two years where a significant amount of money for shares has been transacted without benefit to RAFC. The new investment that is required would be put directly into achieving previously mentioned ambitions.
The board considers that this is an essential next step to allow development of the discussions with interested parties, who, with their vision, professionalism and passion, will be exactly what RAFC needs to not only secure the future, but to develop the club for the benefit of the supporters, the community and the town of Rochdale. Without having the authority to issue new shares, the board is effectively stifled in its ability to seek new investment and we are left in a situation where the status quo prevails.
Whilst the sensitivity and confidential nature of these ongoing negotiations needs to be maintained at this present time, the future transparency and engagement with the supporters on any offer can only benefit all concerned with RAFC.
If we can all work together to bring the passion, vision and investment on offer to the club, we are sure that RAFC will be in a very different place in years to come.
EGM Resolutions 1, 2, 3 & 4
1. THAT, in accordance with paragraph 42(2)(b) of Schedule 2 of the Companies Act 2006 (Commencement No. 8, Transitional Provisions and Savings) Order 2008, the restriction on the authorised share capital of the Company be revoked and deleted from the Company’s memorandum of association.
2. THAT, subject to the passing of resolution 1, in accordance with section 551 of the Companies Act 2006, the directors of the Company (Directors) be generally and unconditionally authorised to allot shares in the Company up to an aggregate nominal amount of £348,521 (697,042 shares @ £0.50 per share) provided that —
a. this authority shall, unless renewed, varied or revoked by the Company, expire at not less than 5 years from the date this resolution is passed; and
b. all shares allotted pursuant to the authorisation hereby conferred shall be so allotted at no less than £6 per share.
3. AND, in the event that resolution 1 is not passed, in accordance with section 551 of the Companies Act 2006, the Directors be generally and unconditionally authorised to allot shares in the Company up to an aggregate nominal amount of £198,521 (397,042 shares @ £0.50 per share), which is the limit of the Company’s authorised share capital, provided that —
a. this authority shall, unless renewed, varied or revoked by the Company, expire at not less than 5 years from the date this resolution is passed; and
b. all shares allotted pursuant to the authorisation hereby conferred shall be so allotted at no less than £6 per share.
Special resolution
4. That, subject to the passing of resolution 2 or 3 and, in accordance with section 570 of the Companies Act 2006, the Directors be generally empowered to allot equity securities (as defined in section 560 of the Companies Act 2006) pursuant to the authority conferred by resolution 2, as if section 561(1) of the CA 2006 did not apply to any such allotment.
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| Club Statement (for shareholders, via email) on 15:06 - May 29 with 3885 views | electricblue |
| Club Statement (for shareholders, via email) on 14:33 - May 29 by RAFCBLUE |
The Halsall company - WAFC 2021 Limited - which was formed to do the takeover of Wigan in January 2021 was requested to be dissolved in April 2021.
https://find-and-update.company-information.service.gov.uk/company/13117255
The owner of WAFC 2021 Limited is Halsall Investments Limited - a company that has net liabilities of £13,837 and two employees at the date of their last published accounts (March 2021).
That would have been the structure had the Wigan takeover been successful. No sign of the £3m. |
Not a mention of where the monies on halsalls side come from..... |  |
| My all time favourite Dale player Mr Lyndon Symmonds |
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| Club Statement (for shareholders, via email) (n/t) on 15:13 - May 29 with 3866 views | electricblue |
| Club Statement (for shareholders, via email) (n/t) on 14:41 - May 29 by D_Alien |
Brilliant
I'm now viewing the Club Statement in a different light altogether
Imo, the board are so pissed off with the criticism they've received they've decided to get shut and leave us with a bury-type situation. The weasel words about "best interests of the club" are precisely that
I'm now also viewing the " wonderful previous board custodians over the past 114 years" as sarcasm
Anyone disagreeing with that analysis should demonstrate how they interpret the resolutions in a different way, now we have insight into what's behind all this
Whilst the resolutions put forward by the club must be stopped at all costs, i have reason for optimism, and that this can be a watershed moment for Dale and its fanbase |
If thats the case then the shareholders other than the board need to do the right thing on the 1st of June and voice their concerns and veto this move and kick it in to outer space towards a black hole never to be seen or heard of again...
Its an understatement to say that the immediate future of Rochdale AFC is in serious threat....
It would interesting what the trust have to say about this.... | |
| My all time favourite Dale player Mr Lyndon Symmonds |
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| Club Statement (for shareholders, via email) on 15:13 - May 29 with 3866 views | RAFCBLUE |
| Club Statement (for shareholders, via email) on 15:06 - May 29 by electricblue |
Not a mention of where the monies on halsalls side come from..... |
You can bid whatever you like for something usually without recourse.
For the Wigan transaction Halsall was never in the place of being preferred bidder or granted exclusivity.
It's only when you have to complete on a purchase that you have to find the funds.
As my previous post on debt financing set out, just because someone bids £3m doesn't mean that have £3m.
I can't see where he has any wealth of that size. Perhaps he was fronting for a consortium of investors. |  |
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| Club Statement (for shareholders, via email) on 15:20 - May 29 with 3829 views | judd |
| Club Statement (for shareholders, via email) on 15:13 - May 29 by RAFCBLUE |
You can bid whatever you like for something usually without recourse.
For the Wigan transaction Halsall was never in the place of being preferred bidder or granted exclusivity.
It's only when you have to complete on a purchase that you have to find the funds.
As my previous post on debt financing set out, just because someone bids £3m doesn't mean that have £3m.
I can't see where he has any wealth of that size. Perhaps he was fronting for a consortium of investors. |
If, indeed, it is him.
No way would our highly professional, hard working CE allow a bid to get to exclusivity without doing the sort of the diligence that throws up so much doubt?
Would he?
Because if he has, he needs to go. |  |
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| Club Statement (for shareholders, via email) on 15:34 - May 29 with 3787 views | electricblue |
I think we have the wrong person in MH..
Its no other than Mark Hodkinson he must have made a few bob on his books......🤣🤣 | |
| My all time favourite Dale player Mr Lyndon Symmonds |
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| Club Statement (for shareholders, via email) on 15:37 - May 29 with 3772 views | SuddenLad |
The nearer we get to Tuesday, the murkier the proposals suggested by the Board begin to look.
The 'Altman statement' from yesterday, claiming that they have effectively been ignored in their efforts to add proposals of their own, then the apparent 'outing' of the Halsall plan seems to indicate that the current Board are simply desperate to depart, and have jumped at the first option without weighing up the possible intricacies of what it means to the long term future of the club.
I can see no merits whatsoever in what the Board has proposed and given what information has/hasn't been unearthed by a few contributors to this thread, there appears to be absolutely no merit in anything that the Hassall plan offers.
Again (as has been the theme for a long time) we need more clarity, better communication more openness and the Board need to stick to the rules and laws to which they are bound by the positions they each hold. This club is not a toy to play with as you see fit. |  |
| “It is easier to fool people, than to convince them that they have been fooled†|
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| Club Statement (for shareholders, via email) (n/t) on 15:51 - May 29 with 3729 views | TalkingSutty |
| Club Statement (for shareholders, via email) (n/t) on 14:19 - May 29 by RAFCBLUE |
The statutory information is a good indicator here, judd of the operating methods of Mr Halsall. Companies House is bountiful.
Mr Halsall is 54 in June 2021 so about 10 years younger on average than our current Board. His main group holding company is called Halsall Group Limited which has net assets of £1.2m and he owns 90% of that and below that there are some other companies which list Halsall Group Limited as the company of significant control.
There is the use of lots of individual companies rather than the traditional group accounts we see, for example for RAFC. The results are all unaudited and it appears there is a large dependency on shared funding between companies.
Outside of that, there is a method of using companies for activity and then dissolving them so they no longer exist once their purpose is complete. There is a long list of dissolved companies where Mr Halsall was a director.
Without going into all the details if you want to go an look then here is the link to Companies House:
https://find-and-update.company-information.service.gov.uk/officers/9FZBX_7QlXV9
Looking into these things, as I do, I can't see where there is any significant wealth that would bring in the £2m to £4m noted in the Club's various literature over the last eighteen months WITHOUT borrowing on the Ground.
It is publicly known that bury borrowed Mr Day mortgaged Gigg Lane ground with Merseyside-based Capital Bridging Finance Solution Ltd for £2.5m at an interest rate of 138 per cent.
You'd imagine that is going to be a large part of the £4m the Board want and the obvious question that brings is at what cost. There are obviously parties who would lend that money too at eye watering rates but the question is at what cost.
The fact that our Board have to propose that all shareholders waive their rights and give the investor first opportunity at £6 a share means that Mr Halsall can't be an investor that would do this takeover by conventional means - i.e. buy the shares needed and then bring finance in to the club.
More likely as with most leveraged buyouts the deal would be a bank loaning the new owner the money secured on the ground asset if they are successful. If someone wanted to be unscrupulous here - as appears happened at bury, you could raised £3m on the ground, offer to buy the new shares at £6 a share for £3m (500,000 shares) and then sit there as "owner" having used a bank's money secured against an existing asset to buy it.
To answer your last question that would mean no personal risk at all as it would all be within the Company.
Finally, the picture of the Rolls Royce. Available credit checks note that this is a leased (not owned) asset.
My view:
I've never heard of this person involved in football prior to his failed bid for Wigan and I've never heard of him as a Dale fan or even as a football fan.
I've can find zero corporate information that tells me he personally has significant money to invest in the club or can do so without raising finance on currently unencumbered club assets.
I'm not jumping for joy to hear of the link to him being potentially the mystery investor. |
Thanks for your post RAFCBLUE and it confirms my suspicions...although I stated 12 months ago that I don’t trust any of the clowns in our boardroom i’m calling bullsh*t on this Halsall rumour. It’s pretty easy to see that Halsall doesn’t have the funds to invest in our Club, if the fans can check that then the due diligence done by the Club would have stopped any deal at first base. They would have done due diligence because obviously shareholders and fans would also do the same to protect our Club, even they know that.
If they are just offloading the Club without doing due diligence then they need running out of Town, every single member of that Boardroom, this is a 114 year old football club and if they think they can screw it up and hand it over to whoever they think then they have another thing coming. Anyway, they all purport to love the club so i’m sure they will have gone the extra mile to do the necessary checks, that’s why it can’t be Halsall. [Post edited 29 May 2021 16:07]
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| Club Statement (for shareholders, via email) on 16:07 - May 29 with 3665 views | 49thseason |
So, if the secret negotiations have been with MH1, what is he able to do that a sensible board could not? The Ground currently has a charge on it that would need to be paid off if it were to be used as security on another loan you would imagine.
The last set of accounts suggested that the current trading situation may not be as bad as we might have imagined. A raise of £1m wouldn't get a new training ground but would fix the cash flow and could be done with a Debenture offer first to current shareholders and then to the wider fan base. Inviting Dracula into the blood bank isnt something that is warranted or needed.
I hope the board isnt so naive as to believe a shiny Roller equals wealth and power. Tommy Cannon used to arrive at matches in a helicopter.....look how that ended.
What our club really needs is an army of hardworking people who are prepared to tramp around the streets collecting a pound here and two pounds there. People who are prepared to give their time and expertise for free, people who are prepared to invest a few pounds for a modest return and people with enthusiasm and ideas to replace dullards and wide-boys.
The right board with good communications and a good attitude could march in front of that army of supporters but playing games, looking for easy solutions, telling half truths and outright lies is a recipe for disaster.
Montgomery used to demonstrate leadership with a table and a piece of string... "push the string from behind and it goes wherever it wants to, pull it from in front and it goes wherever you want it to"..... We need leadership more than we need money. |  | | |
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| Club Statement (for shareholders, via email) on 16:19 - May 29 with 3607 views | judd |
"There has been a concentration by the board in the last four months to bring a conclusion to talks with genuinely interested parties that, if they were to acquire the club, would be to the betterment of RAFC. Commensurate with that, there has been a period of exclusivity with one interested party.
All parties involved wish to continue negotiations and due diligence in a confidential manner which is out of respect for the club. As a responsible board, we understand and respect this situation, but suffice it to say that throughout all the recent and continuing negotiations, we have been greatly impressed by the professional and knowledgeable approach taken at all times.
We can report that the level of investment and the short, medium and long-term plans that have been put forward represent something that this board has been seeking and the club has been in need of for several years."
"The level of investment..put forward"
Must be someone else. This would imply proof of funds and implications of finance have clearly been approved then. | |
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| Club Statement (for shareholders, via email) on 16:23 - May 29 with 3588 views | SuddenLad |
| Club Statement (for shareholders, via email) on 16:19 - May 29 by judd |
"There has been a concentration by the board in the last four months to bring a conclusion to talks with genuinely interested parties that, if they were to acquire the club, would be to the betterment of RAFC. Commensurate with that, there has been a period of exclusivity with one interested party.
All parties involved wish to continue negotiations and due diligence in a confidential manner which is out of respect for the club. As a responsible board, we understand and respect this situation, but suffice it to say that throughout all the recent and continuing negotiations, we have been greatly impressed by the professional and knowledgeable approach taken at all times.
We can report that the level of investment and the short, medium and long-term plans that have been put forward represent something that this board has been seeking and the club has been in need of for several years."
"The level of investment..put forward"
Must be someone else. This would imply proof of funds and implications of finance have clearly been approved then. |
That's all very well if it actually exists and is not being raised to the detriment of the currently sound and stable position of the club.
"Put forward". Yes, not necessarily 'already available' | |
| “It is easier to fool people, than to convince them that they have been fooled†|
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| Club Statement (for shareholders, via email) on 17:19 - May 29 with 3453 views | electricblue |
| Club Statement (for shareholders, via email) on 15:37 - May 29 by SuddenLad |
The nearer we get to Tuesday, the murkier the proposals suggested by the Board begin to look.
The 'Altman statement' from yesterday, claiming that they have effectively been ignored in their efforts to add proposals of their own, then the apparent 'outing' of the Halsall plan seems to indicate that the current Board are simply desperate to depart, and have jumped at the first option without weighing up the possible intricacies of what it means to the long term future of the club.
I can see no merits whatsoever in what the Board has proposed and given what information has/hasn't been unearthed by a few contributors to this thread, there appears to be absolutely no merit in anything that the Hassall plan offers.
Again (as has been the theme for a long time) we need more clarity, better communication more openness and the Board need to stick to the rules and laws to which they are bound by the positions they each hold. This club is not a toy to play with as you see fit. |
Is there a link to to their statement from yesterday.. | |
| My all time favourite Dale player Mr Lyndon Symmonds |
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| Club Statement (for shareholders, via email) on 18:45 - May 29 with 3250 views | electricblue |
Quite interesting what Dan Altman as to say and once again they point to various concerns within the club..
Every point raised by Dan Altman is valid and i agree 100% with everything.
Dale for many seasons where an honest well run family club you only have to look at what other past managers and board members have said and now look...
My big concern is what do the current sponsors think like Crown Oil and Zen..
I do hope that the shareholders do what is right in a few days...... | |
| My all time favourite Dale player Mr Lyndon Symmonds |
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| Club Statement (for shareholders, via email) on 07:26 - May 30 with 2886 views | AussieDale |
| Club Statement (for shareholders, via email) on 18:45 - May 29 by electricblue |
Quite interesting what Dan Altman as to say and once again they point to various concerns within the club..
Every point raised by Dan Altman is valid and i agree 100% with everything.
Dale for many seasons where an honest well run family club you only have to look at what other past managers and board members have said and now look...
My big concern is what do the current sponsors think like Crown Oil and Zen..
I do hope that the shareholders do what is right in a few days...... |
There have been at least 2 instances recently in the Oz press that I’m aware of where Australian companies have expressed an interest in purchasing English football clubs. I think one of them may have been primarily interested In Wigan Athletic. The other one was more generic. What it does indicate is that, for reasons that escape me, there appears to be a fair bit commercial interest in purchasing EFL clubs. One with out any debt would appear to be particularly attractive.
The activities of those running the club at the moment are of great concern. |  | | |
| Club Statement (for shareholders, via email) on 08:02 - May 30 with 2858 views | seasidedale |
I know with what the board are doing and saying but I don’t think that Andrew Kelly who is Dale through and through would easily give control to someone who isn’t of the same opinions as him, if you look at what he has done in the past , testing the water with the Americans to see what was right so I do have some faith (admittly not much) that the right thing for the club will be done | | | |
| Club Statement (for shareholders, via email) on 09:25 - May 30 with 2751 views | judd |
| Club Statement (for shareholders, via email) on 08:02 - May 30 by seasidedale |
I know with what the board are doing and saying but I don’t think that Andrew Kelly who is Dale through and through would easily give control to someone who isn’t of the same opinions as him, if you look at what he has done in the past , testing the water with the Americans to see what was right so I do have some faith (admittly not much) that the right thing for the club will be done |
What has he done in the past? | |
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| Club Statement (for shareholders, via email) on 10:55 - May 30 with 2619 views | RAFCBLUE |
| Club Statement (for shareholders, via email) on 16:07 - May 29 by 49thseason |
So, if the secret negotiations have been with MH1, what is he able to do that a sensible board could not? The Ground currently has a charge on it that would need to be paid off if it were to be used as security on another loan you would imagine.
The last set of accounts suggested that the current trading situation may not be as bad as we might have imagined. A raise of £1m wouldn't get a new training ground but would fix the cash flow and could be done with a Debenture offer first to current shareholders and then to the wider fan base. Inviting Dracula into the blood bank isnt something that is warranted or needed.
I hope the board isnt so naive as to believe a shiny Roller equals wealth and power. Tommy Cannon used to arrive at matches in a helicopter.....look how that ended.
What our club really needs is an army of hardworking people who are prepared to tramp around the streets collecting a pound here and two pounds there. People who are prepared to give their time and expertise for free, people who are prepared to invest a few pounds for a modest return and people with enthusiasm and ideas to replace dullards and wide-boys.
The right board with good communications and a good attitude could march in front of that army of supporters but playing games, looking for easy solutions, telling half truths and outright lies is a recipe for disaster.
Montgomery used to demonstrate leadership with a table and a piece of string... "push the string from behind and it goes wherever it wants to, pull it from in front and it goes wherever you want it to"..... We need leadership more than we need money. |
Some excellent points there, in particular those who can extend their expertise for free.
Regarding the financial position, the only thing we know for certain is that at 31st May 2020 we had £768k in the bank. There is no further forecast than that made other than a line that says "the EFL won't let any club go bust."
Cash is bound to be very tight right now for all clubs and you'd expect us to have made a loss in the year to 31st May 2021 in the circumstances.
An expected question at the AGM will be what is the financial position now?
The Board talked about their short term cash need in the extract judd posted so that would suggest things are tight. [Post edited 30 May 2021 11:00]
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| Club Statement (for shareholders, via email) on 11:24 - May 30 with 2556 views | 49thseason |
| Club Statement (for shareholders, via email) on 10:55 - May 30 by RAFCBLUE |
Some excellent points there, in particular those who can extend their expertise for free.
Regarding the financial position, the only thing we know for certain is that at 31st May 2020 we had £768k in the bank. There is no further forecast than that made other than a line that says "the EFL won't let any club go bust."
Cash is bound to be very tight right now for all clubs and you'd expect us to have made a loss in the year to 31st May 2021 in the circumstances.
An expected question at the AGM will be what is the financial position now?
The Board talked about their short term cash need in the extract judd posted so that would suggest things are tight. [Post edited 30 May 2021 11:00]
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Tight, but perhaps not completely desperate, hasn't thère has been £375k from EFL, cash from the Baah deal and another loan from RMBC? Add to that some revenue from season tickets, a hugely reduced wage bill, furlough payments and other government loans, a bit of income from ifollow..... and aren't we due to get some more Dawson money soon?
The last 12 months will have been a huge setback for most lower league clubs, maybe those that didnt slash their squads last year will pay the price this year? The signs are there in the number of players being released this year.
If there is to be another season like the last one you have to think football at our level is probably finished but we are not quite done yet....
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| Club Statement (for shareholders, via email) on 11:28 - May 30 with 2553 views | tony_roch975 |
| Club Statement (for shareholders, via email) on 10:55 - May 30 by RAFCBLUE |
Some excellent points there, in particular those who can extend their expertise for free.
Regarding the financial position, the only thing we know for certain is that at 31st May 2020 we had £768k in the bank. There is no further forecast than that made other than a line that says "the EFL won't let any club go bust."
Cash is bound to be very tight right now for all clubs and you'd expect us to have made a loss in the year to 31st May 2021 in the circumstances.
An expected question at the AGM will be what is the financial position now?
The Board talked about their short term cash need in the extract judd posted so that would suggest things are tight. [Post edited 30 May 2021 11:00]
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In the 2019/20 Accounts the Auditors Note 2 states -
"Whilst the overall group has sustained losses due to the Covid 19 pandemic in the year to 31 May 2021, the group still has positive funds at the bank. Trading will remain difficult for the financial year to 31 May 2022 and the overall group is forecast to make further losses" | |
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| Club Statement (for shareholders, via email) on 12:57 - May 30 with 2451 views | Dalenet |
| Club Statement (for shareholders, via email) on 11:28 - May 30 by tony_roch975 |
In the 2019/20 Accounts the Auditors Note 2 states -
"Whilst the overall group has sustained losses due to the Covid 19 pandemic in the year to 31 May 2021, the group still has positive funds at the bank. Trading will remain difficult for the financial year to 31 May 2022 and the overall group is forecast to make further losses" |
Have the Directors made a "Going Concern" statement within report to the shareholders? That is always a good indication as to whether the Group can sustain the short term challenges without substantial debt. | | | |
| Club Statement (for shareholders, via email) on 13:08 - May 30 with 2437 views | RAFCBLUE |
| Club Statement (for shareholders, via email) on 11:24 - May 30 by 49thseason |
Tight, but perhaps not completely desperate, hasn't thère has been £375k from EFL, cash from the Baah deal and another loan from RMBC? Add to that some revenue from season tickets, a hugely reduced wage bill, furlough payments and other government loans, a bit of income from ifollow..... and aren't we due to get some more Dawson money soon?
The last 12 months will have been a huge setback for most lower league clubs, maybe those that didnt slash their squads last year will pay the price this year? The signs are there in the number of players being released this year.
If there is to be another season like the last one you have to think football at our level is probably finished but we are not quite done yet....
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Yes; money from the EFL should have landed. Baah - money ; depends on the terms and how the fees was negotiated.
The Dawson money is the Summer and the loan from the council will need repayment.
The crux of our finances is that we cost £4m to run and that's the magic figure of revenue we need to find and as your post pointed out the more sources and people that comes from the better.
We may get a cup run, we may not but the reliable sources of income are a lot less than £4m a year and that's before supporter engagement concerns. | |
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| Club Statement (for shareholders, via email) on 13:25 - May 30 with 2403 views | RAFCBLUE |
| Club Statement (for shareholders, via email) on 12:57 - May 30 by Dalenet |
Have the Directors made a "Going Concern" statement within report to the shareholders? That is always a good indication as to whether the Group can sustain the short term challenges without substantial debt. |
Yes. Page 22 of the 2019/20 accounts:
The financial statements have been prepared on a going concern basis, which assumes that the company will continue in operational existence for at least 12 months from the date of signing these reports.
Whilst the overall group has sustained losses due to the Covid 19 pandemic in the year to 31 May 2021, the group still has positive funds at the bank.
Trading will remain difficult for the financial year to 31 May 2022 and the overall group is forecast to make further losses.
However, these forecasts do not account for the potential upside from positive revenues from cup games, associated television money, and potential player sales.
In addition, the EFL have pledged that they will not allow any clubs from the football league to "go under" due to Covid 19 and as such have made additional loans available if required. Also the company will make use of any further relevant Government initiatives made available.
The directors are therefore of the opinion that the going concern principle remains appropriate and the accounts have therefore been prepared on that basis.
We are in the usual place of budgeting for a loss, subject to upside if we have player sales or a cup run. This says we have positive cash reserves at 17 May 2021 (the date the accounts are approved)
I'm not certain its right to rely on the fact that EFL may step in for a Going Concern statement - they have proven themselves to be hands-off at clubs where it goes wrong - preferring to see them slip outside of the EFL into the non-league than step in.
I think it will be a difficult financial year next year if we have a bad League 2 campaign and no cup run. The saleable playing assets are not of the quantity that they were 24 months ago and people have got out of the habit of tipping up to football and paying in; its very easy to believe a number nationwide might not return to the habit. | |
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| Club Statement (for shareholders, via email) on 13:42 - May 30 with 2375 views | RAFCBLUE |
| Club Statement (for shareholders, via email) on 08:02 - May 30 by seasidedale |
I know with what the board are doing and saying but I don’t think that Andrew Kelly who is Dale through and through would easily give control to someone who isn’t of the same opinions as him, if you look at what he has done in the past , testing the water with the Americans to see what was right so I do have some faith (admittly not much) that the right thing for the club will be done |
I don't disagree with your sentiment about Mr Kelly and his passion for football in the borough.
However, he only owns 11.5% of the club. So whilst he is an important voice he is not capable of distinguishing the passing of control.
Nor is the current board of which he is part; they collectively only have 19.5% of the club between them.
The testing of the water with Mr Altman and Mr Marcelli was only in part because of the falling out with Chris Dunphy. Until Chris Dunphy left the Board, it had been unheard of for shares to be traded privately and has sparked IMO some paranoia not just about ownership but who controls the club day-to-day. That in turn has then seen the club end up to the secretive state is is today; very limited communications and a frustration, which in some quarters has turned to anger, over certain matters (e.g. BBM's contract extension)
When the Company incorporated in 1910 there were 11 participating directors - of equal status and shareholding who stated their number must never by below 7.
The club will never be like that again but it does need to align Board, Shareholders and Trust as one with fans compatible with how the DNA of a Rochdale fan works and that has to mean broadening expertise and involvement to a greater number.
Anyone involved with Rochdale at Board level is only ever a temporary custodian. A custodian's job is simply to take responsibility for taking care of or protecting. | |
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| Club Statement (for shareholders, via email) on 07:37 - May 31 with 1942 views | Dalenet |
| Club Statement (for shareholders, via email) on 13:25 - May 30 by RAFCBLUE |
Yes. Page 22 of the 2019/20 accounts:
The financial statements have been prepared on a going concern basis, which assumes that the company will continue in operational existence for at least 12 months from the date of signing these reports.
Whilst the overall group has sustained losses due to the Covid 19 pandemic in the year to 31 May 2021, the group still has positive funds at the bank.
Trading will remain difficult for the financial year to 31 May 2022 and the overall group is forecast to make further losses.
However, these forecasts do not account for the potential upside from positive revenues from cup games, associated television money, and potential player sales.
In addition, the EFL have pledged that they will not allow any clubs from the football league to "go under" due to Covid 19 and as such have made additional loans available if required. Also the company will make use of any further relevant Government initiatives made available.
The directors are therefore of the opinion that the going concern principle remains appropriate and the accounts have therefore been prepared on that basis.
We are in the usual place of budgeting for a loss, subject to upside if we have player sales or a cup run. This says we have positive cash reserves at 17 May 2021 (the date the accounts are approved)
I'm not certain its right to rely on the fact that EFL may step in for a Going Concern statement - they have proven themselves to be hands-off at clubs where it goes wrong - preferring to see them slip outside of the EFL into the non-league than step in.
I think it will be a difficult financial year next year if we have a bad League 2 campaign and no cup run. The saleable playing assets are not of the quantity that they were 24 months ago and people have got out of the habit of tipping up to football and paying in; its very easy to believe a number nationwide might not return to the habit. |
Thanks for finding that. Let's hope the statement about the EFL dependency is a belt and braces assumption rather than any expectation it might be needed. Will be an interesting debate at the AGM. | | | |
| Club Statement (for shareholders, via email) on 20:07 - May 31 with 1430 views | mightydale |
Good luck for the 1st or when ever the AGM/EGM or what ever it called.
If Bottomley still in charge after the above events,their is going to be major disturbances next season after every home game.
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