Search goes on as Dale deal falls through
ROCHDALE’S search for fresh investment continues after advanced talks came to an end earlier this week.
A deal to provide the club with significant new investment had reached an advanced stage after the Dale had been searching for new investment for some time.
But on Monday the club, currently 8th in the National League, confirmed those talks had failed and it was looking elsewhere for investment.
The club put out a statement in December of last year inviting potential investors to come forward against the backdrop of losses which they feared could total up to £1.2m for the financial year ending in June 2023.
Rochdale became a fan-owned football club in August 2022 after a long-running dispute with potential owners, Morton House, was settled.
The Morton House deal had been dubbed a ‘hostile takeover’ by the club’s hierarchy and was eventually rebuffed, with sanctions faced on both sides.
The statement from Rochdale earlier this week read: “As has been widely communicated, the Board of Directors has been actively seeking investment in the club for the past 12 months.
“Advanced talks have recently been undertaken with interested parties.
“It is standard procedure for Non-disclosure Agreements (NDAS) to be signed as part of this process, which legally restrict the information that can be publicly shared by anyone involved, including to our supporters.
“Representatives of the
Dale Supporters Trust were invited to meet one particular group during the week commencing 13/11/23 and have also met others at various stages over the past year.
“Prior to any future agreement being signed and any future formal announcement being made, the Board of Directors will ensure that the relevant Owners’ and Directors’ Test (OADT) clearances have been granted, and that
The
National League have fully engaged with the individual or group in question.
“The Board of Directors wishes to offer its gratitude for the tremendous backing that supporters have provided, both on and off the field, so far this season in difficult economic conditions. We recognise that supporters want what is best for the club and that at times this will result in speculation on potential investment.
“However, it should be acknowledged that a small percentage of this online speculation has made concluding investment deals more challenging.
“As of today (Monday 4th December 2023), the club remains in talks with numerous parties over minority and majority investment.
“However, none of these talks are now at an advanced stage, and we are very much open to engaging with any interested party.
“Chairman Simon Gauge and family have provided funds to stabilise the club’s finances whilst an investment partner continues to be sought.
“In order to assist with this process, some changes to the Board of Directors are expected to be announced in the coming days.
“Additionally, notice of the 2023 AGM will be distributed to shareholders this week, with the meeting to take place later this month.
“The Board of Directors would also like to take this opportunity to thank players and staff for their continued hard work and dedication to the club, especially during this past week when a lot of rumours have been circulating”.
There was mixed reaction on social media from fans after the statement was published.
One fan commented: “Reading through this, it seems like the deal with the Americans fell through if it was even real to begin with.
“Slightly worrying statement but still slightly heartened to hear we have multiple interested parties”.
Another voiced their immedidate concerns for the future of the club, saying: “I am fearful that we are going to be doing a Bury unless we find investment very soon.
“The way its going we will be lucky to get to end of this season. Feel so sorry for the players and staff”.
Another was supportive of the club’s efforts to find investment, commenting: “Everybody wants to own a club but when it’s time to show up with the cash, it falls through.
“Another close escape. Yet Simon is still willing to dig deep into his own pocket, do you honestly think he wants the club to fail?
“Real life business isn’t football manager 24”.