Over the past two years the board has been working very hard to reduce the level of operating losses at the club. In particular cuts and savings on overheads have been made together with a thorough reorganisation of staffing in every department. At the same time the need for additional investment has remained a pressing objective and this has in fact been an even more difficult task.
Over the past few months the Board has been involved in detailed discussions with a number of interested parties, The Board has been extremely confident that one of these interested parties would invest in the future of the club and has spent a great deal of time and effort in trying to ensure this happened. However, several of these parties have now dropped out of the picture and some of our confidence has been lost. A huge stumbling block in negotiating with investors has proved to be the terms and conditions of the lease for the ground. Unfortunately, the lease was presented to the current board as a non-negotiable item when they stepped in at the last minute to rescue the club. As such there has not been any opportunity to discuss more reasonable terms befitting a club of Rotherham's size and turnover.
We were very close to agreeing an investment package with a group of investors who we met in London last week which we were confident would allow the club to progress through to the time when the new Community Stadium was complete. When these negotiations fell through, again largely due to concerns surrounding our lease agreement, the directors recognised the need to seek external advice.
Our need to find new investment had become more urgent following a significant shortfall on the insurance payout after the flood, coupled with lower than anticipated match day attendances. The Club has accumulated a large debt with P.A.Y.E. We are on good terms with HMRC, with whom we have weekly discussions. They have been very sympathetic of the need for the Club to secure its future funding. We have nothing but praise for their considerate yet professional approach. However, it is plain that things can not continue like this and that time is not on our side.
We are now some months down the line from beginning serious negotiations with investors and we are regrettably still not yet at a stage where a certain future for the Club can be definitively guaranteed. With the difficulties involved, a resolution could still prove to be several months away. Now really is the time for any investors to come forward.
We remain hopeful that investment can still be found and the fact that a new stadium is now in reach does make the Club a far more attractive proposition for would-be investors. Recent history has shown that new stadiums generate greater interest and support as well as additional revenue. Rotherham Unitedand its loyal supporters are deserving of this.
But that is still some way off and in the meantime we are conscious of the need to protect the Club from any possible action from any of its creditors. In order to combat this, we have therefore filed a 'Notice of intention to appoint an administrator'. This does not mean the club is in Administration or even that it will necessarily go into Administration. Instead it protects the Club from possible hostile actions at a time when the Club needs to be fully focussed on finding new investment. Clearly the threat of administration will recede if a serious investor can now be found. This is something we all want, and something the Club needs quickly. However, if no deal can be brokered then administration would be the only option for the Club and that would be a great shame as it would mean a points deduction.
The Club retains hope that there is a consortium or forum of investors/fans with the capability andnecessary financial clout to enable the Club to go forward.
The Club is one of only 72 in the Football League and represents a golden investment opportunity to enter into a traditional and cherished world. Any party who is interested in acquiring or investing in the Club should speak to Chief Executive Paul Douglas or any of the directors. The directors will either step down or work with any interested party.
It should be remembered that a lot of the hard work has already been done for the cause. It is imperative that our fans continue to support the Club during this uncertain period in order to demonstrate to potential investors that there remains a burning desire to keep League Football in the town. Now is a critical time for the Club, and we all have to do everything we can to ensure we attract the investors we need to create another 100 years of league history for Rotherham United. Time is limited so prompt action is vital. Please show your approval and support by continuing to come through the turnstyles and be prepared to back initiatives that hopefully will arise in the next few weeks.
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