EFL: No proof of investor’s funds
Head of Governance ‘cannot find any evidence of the source and sufficiency of funding on behalf of the potential purchaser having been provided to us’
THE latest twist in the battle for power at Rochdale AFC has thrown the hostile takeover bid reported in Saturday’s Observer into doubt.
We reported at the weekend how an unnamed investor had snapped up 40 per cent of shares in the club and had met with both club directors and the Dale Supporters Trust last week as they looked to progress their push for control.
The Dale Trust issued a statement informing members the investor had acquired a 40 per cent shareholding and had provided proof of funding to the English Football League.
However, it transpired over the weekend that the EFL had contacted the Dale Trust to take issue with a couple of bullet points in the statement.
Firstly, the shares have not been ‘acquired’ until the share transfers have been signed off by the club.
Secondly, the EFL has not had proof of funding, writing to the Trust and stating they “cannot find any evidence of the source and sufficiency of funding on behalf of the potential purchaser having been provided to us.”
The Trust’s statement read: “We were contacted by the EFL with regards to the statement that we put out on Wednesday morning regarding the potential investors and our meeting with them on Tuesday afternoon.
“The EFL had a problem with these two lines: ●
HE has acquired over 40% of the shareholding in the Football Club
HE has provided proof of funding to the EFL
●
“The first bullet point had been confirmed to us at the meeting on Tuesday.
“We now believe that the shares are not “acquired” until the share transfers have been signed by the Club.
“As such, we immediately amended the article changing the first point to “agreeing to purchase” rather than having “acquired”.
“The information in the second bullet point was given to us via an email from the investor on Monday evening that stated “I’ve also provided proof of my funds to the EFL evidencing I have the money to support the Club for the next few years.”
“We deleted the bullet point and subsequently contacted the EFL with regards to seeking further clarity on whether proof of funding had been provided to the EFL.
“The EFL Head of Governance Ryan Hyde wrote to us on Friday afternoon and confirmed that they “cannot find any evidence of the source and sufficiency of funding on behalf of the potential purchaser having been provided to us.”
“Having previously informed our members that proof of funding had been provided, it is important that we provide our members and fellow supporters of Rochdale AFC with what the EFL has confirmed to us.
“We have informed the Investor on Friday evening with the information provided to us by the EFL.
“Should proof of funding be provided to the EFL, we will update our members at the earliest opportunity but only when we have received full confirmation from the EFL.”