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millers could go out of business..

millers could go out of business..

Rotherham united may lose their football league status as the financial situation at millmoor is at a critical level

the club is currently losing £140,000 per month


Employees have been told of the seriousness of the situation at a series of meetings overnight and today (Thursday, February 9) at the League One club's Millmoor Ground.

The Football League has been informed and the club, which is currently losing £140,000 a month, is being advised by experienced Licensed Insolvency Practitioners Matthew Dunham, of BDO, and Mark Hovell at George Davies.

The club has launched an appeal - £Ten To Play Again, £Twenty-Five To Stay Alive - in a last-minute bid to save the Millers. The club needs to find £1m to keep going until the end of the season and up to a further £1m, based on current estimates, to achieve full viability for next season and beyond.

In a stark message to fans, shareholders, players and staff, Chairman Peter Ruchniewicz said: 'We are sorry to have to tell you that the club's financial position has entered a critical phase and there is the very real prospect that the club will be advised to cease trading within the next few weeks unless within that time we can find credible individuals with sufficient savings additional funding to take it forward.

'Heaven forbid, but if the club does cease trading it is likely to go straight into liquidation - it seems unlikely it could go into a formal administration given its limited resources and the level of funds and assets required. This would mean that the club would go out of existence, a thought too dreadful for any of us to contemplate but nevertheless a very real possibility.'

The dramatic change of fortunes for the South Yorkshire club - heavily in debt before the current board took over - follows advice from independent accountants reviewing all aspects of the business going forward in the light of changed circumstances which has seen the club suffer a number of blows:

A poor response to a recent rights issue
An ongoing dispute with Southend over the transfer of Jamal Campbell-Ryce has so far reduced cash flow by more than £125,000
A significant reduction in income from season tickets coupled with declining gate receipts and commercial income
'We are being advised by Licensed Insolvency Practitioners and are in consultation with the League on a regular basis in order to try and find a solution.We as a board, have statutory duties not to allow the Club to trade beyond a point we believe it cannot recover from. That point in time is fast approaching,' added Mr Ruchniewicz.


However, Mr Ruchniewicz believes that with the backing and financial support from the people of the town of Rotherham, the football community, Millers supporters and potential investors, the club could still have a long-term future.

'We realise how difficult this must be for everyone concerned with the Millers. But without in any way down playing the seriousness of the situation, we sincerely believe there is still a good chance we can save the club providing everyone who has any sort of link with the club gets behind us.


whats gone wrong,why wasnt concrete structures put into place? and why have the fans been kept in the dark ( yet again ) discuss it in the forum

Writer:
Date:Thursday February 9 2006
Time: 10:51AM

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