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Rochdale fans fight back against hostile takeover

Rochdale fans have fought back against the threat of a hostile takeover and safeguarded the club. Since early August, Rochdale have been embroiled in a fight for their future after several major shareholders including Andrew Kilpatrick, the son of former chairman David, and former chief executive David Bottomley sold up to new investors Andy Curran and Darrell Rose.

New investment is rarely treated with caution in football but alarm bells started ringing when Curran and Rose began paying well over the odds for shares — in some cases as much as £10 for shares only valued at £2 each — with little explanation. The pair had a limited digital footprint and no obvious connection to Rochdale — neither the town 10 miles north of Manchester or its football club — to explain their desire to invest so heavily in a team that is self-sustainable and has spent the bulk of its recent history in League Two.

They quietly amassed enough to constitute ownership of roughly 42.3 per cent of the club before even approaching the club or submitting to the EFL’s owners’ and directors’ test.

That is when Rochdale fans stepped in, and it is a testament to them and their ownership structure that has saved them from an uncertain fate. Since the hostile takeover attempt was brought to light, fan pressure was key as Curran and Rose’s firm Morton House announced it would step back and seek to divest its shares.

Although the first battle was won, Rochdale were in limbo while they waited to see who might buy up the Morton House shares. There was interest from former Charlton Athletic chairman Matt Southall, who met with the Dale Trust to discuss investing but has since moved out of the picture. Southall’s fractious tenure at and exit from Charlton was a concern for Rochdale fans.

He told the Trust that, like Morton House, he would oppose the club’s next move intended to ensure a more stable future and called an extraordinary general meeting early in October to issue nearly 400,000 new shares (adding to the existing 502,957 shares) in the football club. The motion passed with just one shareholder voting against the motion and the backing of 98.6 per cent of the membership of the Dale Trust. No representatives of Morton House showed up to the EGM.

Shares have sold well, with large quantities already purchased by local fans, the Dale Trust and the club’s Community Trust, which should dilute Morton House’s holding from around 42 per cent to below 30 per cent. The new share issue has also, vitally, put funds directly back into the club whereas those shares bought up by Curran and Rose did not.

The pair can still sell their shares but Rochdale is now protected from a further hostile takeover by “an enhanced version of the old ownership model”, according to another supporter who, like many others, bought shares in the new issue.

They are the proud owners of their club and have cheered Stockdale’s side through this most tumultuous season in the knowledge that they have done all in their power to save an asset so important to the community. Rochdale can dare to make plans again and the new board have fast won the backing of fans, who will remember those who did not help them through these past tough months as much as those who did.

 

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