What's going on at crisis club Morecambe?

BBC News

5 days ago

Relegation from the English Football League, two proposed takeovers uncompleted, wages partly unpaid, and massive doubt over their future existence.Morecambe's summer has been filled with financial uncertainty, overshadowing their preparations for a first non-league campaign in almost 20 years.So, what exactly has led the Shrimps to such a perilous point?
How has this situation evolved?
Just four years ago Morecambe won promotion to League One for the first time in their history through the 2020-21 League Two play-offs at a Covid-restricted Wembley Stadium.Manager Derek Adams, who is currently in his third spell as Shrimps boss, left that summer but returned at the tail end of the following season to help them stay in the third tier, finishing two points above the drop zone in 19th.It was no mean feat for a club of Morecambe's size and stature, with wins against Sheffield Wednesday and Charlton Athletic providing the points to keep them in a division filled with comparative giants.Since then, though, things have quickly gone downhill for the Lancashire club.The Shrimps were put up for sale by owners Bond Group in September 2022, but a deal has still not been completed, and two relegations in three seasons since have seen the club drop into the National League for the first time since 2007.Late payment of wages, transfer embargoes and points deductions have all overshadowed matters on the field.The club were docked three points late on during the 2023-24 League Two season after failing to adhere to an agreed decision imposed on them for failing to pay players' wages on time the previous August.They were then given a suspended two-point deduction last season for failing to report on five separate occasions the non-payment of amounts owed to HMRC within the required two working days.With just over two weeks until the start of the upcoming 2025-26 campaign, two parties have had bids to buy the club accepted, but it is unclear how close a deal is to getting over the line.
Who is Morecambe owner Jason Whittingham?
Jason Whittingham, through Bond Group, took over Morecambe in May 2018 with the club then at risk of relegation to the National League.Whittingham was also part-owner of rugby union club Worcester Warriors, who eventually lost their place in the Premiership in 2022 having gone into administration.In the aftermath of Worcester's demise, Whittingham later put Morecambe up for sale.Nearly three years on, a takeover still has not been completed.Speaking to BBC Radio Lancashire in January, Whittingham said he "could not wait" to get out of the club.That month the Shrimps were unable to sign players until they offered the EFL sufficient proof of funds that they could operate until the end of the season, which was only secured with days of the transfer window remaining and 19 games left.Despite beginning that run with victory over Lancashire rivals Fleetwood on 1 February, they managed only four more wins and one draw, and ended the season with a six-game losing run as they finished bottom of League Two and were relegated.Whittingham has been contacted by BBC Radio Lancashire for comment.
What has happened at Morecambe during the summer?
In April, the club said "positive progress" had been made towards a sale, with Adams predicting the club would bounce back to the EFL. But just days later he criticised the owner and board of directors for "not having a plan" in place for 2025-26.There appeared to be good news at the start of June as a consortium known as Panjab Warriors had their takeover bid approved by the EFL.However, after the club's board claimed Whittingham appeared to be "considering reneging" on the deal and raised concerns about the Shrimps' future existence, local MP Lizzi Collinge said the businessman "needed to get on" with the sale. On 1 July, the board said they would begin the process of putting the club into administration if Whittingham did not sell the club, claiming "Bond Group do not have the required funds to meet the club's full payroll commitment".In response, Whittingham sacked the board, claiming he did so in order to give Bond Group the time it needed to ensure the club could avoid administration.On 4 July, Whittingham said terms were agreed with Panjab Warriors and invited the former directors of the club back in order to oversee the final stages of the sale process, which he said would take place on 7 July.When that did not happen, the board stepped down, with Whittingham insisting he was still committed to a sale.On 9 July, a "last minute bid" was made for the club by an unnamed party which was later confirmed by Whittingham to be from a consortium led by an investor he said is named Jonny Cato.Two weeks on, Cato's bid has not been completed and it is unclear where Panjab Warriors' deal stands. Cato has not been seen or heard from in public.
Who are Panjab Warriors and Jonny Cato?
Panjab Warriors, understood to be a group of Sikh businessmen, have been attempting to purchase Morecambe for more than a year and claim they have made significant financial contributions towards the running of the club during that time.They previously said, external they had already paid £3.8m to Bond Group alongside a separate payment of £630,000 to clear outstanding loans against the club.The group have also claimed they had loaned a further £1.7m to the club over the past 14 months to "ensure its ongoing survival".In a statement on 19 July, Panjab Warriors said, external their solicitors had served legal notices to Whittingham and Bond Group over "repeated breaches of what has been agreed".As for Cato, not much is known about his identity but in a statement last week, Whittingham claimed Cato did not have a connection to himself or Bond Group.Supporters' group the Shrimps Trust claimed in a statement, external earlier this week the club's players would not play until the ownership situation was rectified.This comes after players and staff were only paid a third of their most recent wages and Tuesday's planned pre-season friendly against Barrow was cancelled.However, in a statement given to BBC Radio Lancashire on Tuesday, boss Adams said his players were not on strike."The players are not on strike and they all trained today at the training ground," Adams said."Their professionalism has been magnificent during this difficult time. We all want this situation to be resolved and the best outcome for Morecambe Football Club."
Where does this all leave Morecambe now?
Former co-chairman Rod Taylor said he was fearful for the club's existence last week, and fellow former board member James Wakefield painted a similarly bleak picture, saying he was "amazed the club was still alive".Morecambe's woes continue as the landmark Football Governance Act received Royal Assent on Monday, establishing a regulator to oversee the men's game in England's top five divisions.The Act grants greater powers to a body that is independent from government and football authorities, and Culture Secretary Lisa Nandy said the bill would make a difference to clubs like Morecambe and "can't come soon enough".Speaking to BBC sports editor Dan Roan, Nandy said: "I'm horrified by what is happening at Morecambe."It's a scenario that too many football fans will recognise up and down the country, including my own in Wigan, and it is heartbreaking for the fans involved who don't know when they wake up in a morning if their club is going to be there or not."This bill will make a significant difference to situations like the one facing Morecambe fans because the regulator will not only have a much tougher owners and directors' test but will also be able to compel owners to sell up if the club is placed at risk of harm. It can't come soon enough for Morecambe."
What is the human impact?
Morecambe are due to play Boston United on 9 August to kick-off their 2025-26 National League campaign.Derek Quinn, who has covered the club for the BBC for 30 years, fears they might not even make it to that stage as things stand."The club is definitely on the brink of going under and it is heartbreaking to see," he said."Players and staff have now not been paid for more than three weeks and community events [at the stadium] such as school proms and private bookings for weddings, funerals and parties have had to be cancelled at the last minute."The sight of one fan, who has supported the club with her family for more than 50 years, breaking down in tears while being interviewed was heartbreaking."For these fans, and thousands of others, this is not just about football - it is about their families and their community."One thing is for sure - there will be far more tears shed if Morecambe Football Club's 105-year existence comes to a crushing end."