Rotherham finances are reaching a critical stage

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Things are looking bleak for the League One club. The club is the relegation zone and has announced that its finances are reaching a critical stage. The club announced it is losing GBP 140,000 per week and is in danger of receiving an order to stop trading its shares, a move that would threaten its membership in the Football League.

“We are sorry to have to tell you the club's financial position has entered a critical phase and there is the very real prospect 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 and additional funding to take it forward,” Club chairman, Peter Ruchniewicz said in statement. He went on to say that if the club stops trading, the next step would be liquidation. After that, the club would go out of existence. “(Cessation is) a thought too dreadful for any of us to contemplate, but nevertheless a very real possibility.” Ruchniewicz said. Just a year ago, things were more optimistic.

Rotherham United Supporters Trust (RUST) responded to a GBP 300,000 worth of share benefits, which were used to finance a new 4,200 stand for the club. Another share offer was offered last November, with club officials stating that it would ensure stability. “The tough financial position we found ourselves in was not going to change dramatically overnight, but we are turning the club around and are on course to break-even next season,” Trust Chairman Craig Saunderson said at the time. “We urge shareholders to follow our lead and take-up the offer.”

This season, however, attendance has dipped to an average of 5,023 per game, compared to 6,289 when the team was competing in the Championship division. Rotherham is now taking advice from licensed insolvency practitioners and has informed the Football League of its financial problems. The club has stated it will need to find at least GBP 2million to survive the rest of this season and to be viable for next season.