Rochdale is to be saved from the threat of liquidation by an American investor. The National League club has received numerous inquiries since announcing it could go out of business and enter a period of exclusivity with World Soccer Holdings.
This gives both parties a window of opportunity to complete a deal and gives World Soccer Holdings the opportunity to conduct due diligence. Rochdale told World Soccer Holdings had signed a letter of intent to purchase the club, which requires a £2 million investment to ensure it can continue to operate.
One hurdle that needs to be overcome is a change in the shareholder structure. A vote is due to take place on March 7 on whether 90% of the shares can be sold in a transaction to facilitate the takeover of the fan club. “Let me be clear: Rochdale AFC’s very existence is at stake,” Rochdale chairman Simon Gauge said last week. “The opportunity to provide a long-term future is now in the hands of shareholders.”
There are real concerns that the club could no longer exist at the end of the season and could run out of money by the time payroll is due in March if a takeover is not completed. Gauge has helped keep the club going by depositing £566,000 but has reached his loan limit.
The team is in 11th place in England’s fifth division and is nine points off the playoff places.
