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Complete collapses of football clubs have been rare and they have generally re-appeared as non-league sides. Those most vulnerable are perhaps smaller northern clubs in economically declining towns near other major cities. Rotherham fits that bill, being not that far from Sheffield with its two major clubs, one bidding for the Premiership (see story below). I remember going to Rotherham a few years ago to see a game against Brighton and thinking that it was prototypical northern club, symbolically surrounded by scrap yards. Now the future of the 136-year old club is in real danger. Various activities by supporters have raised £200,000, but it is not enough to save the club. A tax bill of £77,000 that would have led to a winding up order will now be paid, but the club will nevertheless become insolvent on 26th March. The club needs £1m to survive until the end of the summer, but the three fans who took it over fourteen months ago don't have that kind of money. Vice-chairman David Veal admitted, 'We took over a club that was losing £30,000 a week and we've had problems turning it around.' Veale admits that a benefactor is unlikely to appear over the horizon. Rotherham is a small club in an unglamorous location. Will scrap metal magnate and former owner Ken Booth come to their rescue? The octogenarian cleared the £3m overdraft when he gave up control last year, but held on to assets such as the Millmoor stadium. Rotherham would be viable run with part-time players, but the trend is for even the Conference to go full time.
Update 24/07/2006 - Reprieve For Rotherham
When a lower division club is threatened with closure someone usually steps in to save the club. This is what has happened at Rotherham where a consortium of local businessmen seems set to guarantee the club's survival. Local property develop Dennis Coleman, who is likely to be the chairman and Dino Maccio, an (Italian?) restaurant owner are heading up a consortium likely to involve three other investors. The Millers 05 group who have been running the club will step down. Coleman commented, 'I do not want Rotherham to be known as the town that lost its football club.' However, he also noted, 'As a group we have invested a lot of money in the Millers - but I must stress that we cannot do it on our own. We have had a wake-up call, we do not want to get caught again.' One of the first challenges facing the new owners, once the formal handover is completed, is how to stem the losses of £140,000 a month.
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