Concerns grow with Morecambe placed under embargo by the EFL over unpaid tax bill

Concerns grow with Morecambe placed under an embargo from the English Football League (EFL) over an unpaid tax bill.

The Shrimps have not complied with EFL regulation 17.3, which specifically relates to the outstanding amounts owed to HMRC.

As a result, the club will be prevented from strengthening its team or adding to its playing staff costs until such time as it has met its existing financial obligations and/or the club has rectified the relevant breach to the EFL’s satisfaction.

This restriction will remain in effect until the club fulfils its financial obligations or rectifies the breach to the satisfaction of the EFL.

Embargoes serve as a deterrent against clubs defaulting on their financial obligations to other clubs or players, as well as violating other important regulations, such as financial reporting.

The embargo has been in place since last Wednesday, although Morecambe FC has chosen not to provide a formal comment on the matter according to Beyond Radio.

Although, Chief Executive, Ben Sadler has told BBC Radio Lancashire: ‘The circumstances around this issue are unusual following an assessment and we are working with the EFL & HMRC to resolve the matter as soon as possible.’

The intransigence of Jason Whittingham is appalling and endangers the future of Morecambe. He cannot or will not fund the club properly and he cannot or will not sell the club for what it’s worth. And so it goes on: 18 months without either a sale or financial stability. https://t.co/dgGWCxG0dj

— Martin Calladine (@uglygame) March 28, 2024

CLUB STATEMENT:

“With reference to the EFL embargo in respect of sums due to HMRC. The matter relates to VAT and is a highly unusual circumstance whereby the Club is actually paying sums due in advance of those monies being due back to the Club.

“The matter has nothing to do with the current sale of the Club and its ownership. Due to the way the matter is being orchestrated by HMRC, it has been reported to the EFL and, under the rules, triggers an embargo.

“The EFL are, and continue to be, in dialogue with the Club and are communicating with HMRC who are fully appreciative of the highly unusual circumstance and have been supportive of the Club.

“To try to put it in simple terms, we have to pay for something where we have done nothing wrong before we are refunded, so essentially, paying for something twice.

“We hope to get the matter resolved as soon as possible.”

Morecambe fans staged a march ahead of their game against Wrexham earlier in March to raise awareness about ongoing issues at the club.

Shrimps Trust said they wanted to highlight their frustration that the club’s been up for sale for more than 18 months.

The current owners, Bond Group Investments, listed Morecambe for sale 18 months ago but have not been able to finalize a deal yet.

The company have owned Morecambe since May 2018 and officially placed the club on the market in September 2022.

In response to the prolonged sale process, the Shrimps Trust, a supporters’ group, arranged a protest against the ownership.

Demonstrators started at the Eric Morecambe Statue, proceeded along the promenade and Regent Road, and concluded the march at the Hurley Flyer pub near the stadium.

During the protest, fans displayed ‘For Sale’ signs to showcase fan backing and highlight the ongoing availability of the club for purchase.

Morecambe boss Ged Brannan said after being questioned on the march a day before it took place: “They all care about the club and want it to be sold in the future. I can’t wait until they get in the ground and get behind us like they have done all season.”

SEE MORE: Fans of three EFL clubs team up asking ‘who next’ amid protest prior England game at Wembley

We have teamed up with @The1867Group and @SellBeforeWeDai on this one.

Against ownership of @MorecambeFC @ReadingFC and @swfc

Together, we’re asking #whosnext.#readingfc | #swfc | #UTS | #FootballHasAnOwnershipProblem pic.twitter.com/jd9KHMPUQ6

— Shrimps Trust 🦐 (@shrimpstrust) March 26, 2024

Morecambe Football Club is UP FOR SALE 🦐 pic.twitter.com/1JzQIxn6om

— Shrimps Trust 🦐 (@shrimpstrust) March 9, 2024

Fans gave their reaction as concerns grow with Morecambe placed under an embargo by the EFL over an unpaid tax bill…

@MorecambeFCFeed: @KieranMaguire @uglygame The circus continues!

@snp9150: Sorry to hear

@MFC_jordan: fuck jason, fuck bond group, fuck sake.

@CassBen1: Important we don’t pretend to fully understand this without any context but it’s obviously not good news. HMRC issues start me thinking about winding up orders which have seen other clubs disappear. It needs sorting quickly as does the sale of the club. Time’s up, Jason 🦐

@jayspray04: 1 normal day is all we want.

@Caprani14: Ah man, we are finished

@TomDGoldy: You must be a sick person to enjoy the downfall of Morecambe

@mickeymfc: Just another day at the circus that is Morecambe FC 🤡

@LiamK1998_: Another club the EFL are killing

@wokey42: As a Reading fan afflicted with similar problems, sympathies to the fans, always those who get screwed the most.

@AG17__: awww i actually really like morecambe and was gutted when they got relegated, horrible seeing owners completely ruin clubs and the fans being the ones to suffer ☹️

@CTM_FTW: FOOTBALL HAS AN OWNERSHIP PROBLEM!!

@gards88: Should never of left Christie park, was left to the club gor sports use only but brown envelopes let get changed to a Sainsbury’s.

@nathanmcbride95: Why am I so worried right now?😫😫😫

@SellBeforeWeDai: Yet another club with ‘unusual’ excuses as to why they haven’t paid HMRC. Hope for @shrimpstrust that someone buys Morecambe out and stabilises them as a club. Being up for sale for years as they have been is no way to run a community club. #FootballHasAnOwnershipProblem

@DBuckleJourno: Running my club into the ground bit by bit. Sell. The. Club Jason 🤡

@Matt_Severn: Very concerning news. If this had happened in January we’d have been sunk

Jim Clarke: Bond Group strikes again 😢

Paul Crabtree: ‘No comment’ is not a good look when your trying to encourage fans to get an early bird season ticket. A statement from the club is a must now, where’s the promised openness with the fans as discussed at the recent fans forum?

Keith Fitton: How have the club not got a pre-prepared statement, ready to release, as soon as the shit hit the fan, (or, in our case, ‘the fans’)? We need (and deserve) to be told the details of this issue. You don’t just ‘accidentally’ not pay HMRC, and the EFL don’t place a club under embargo overnight.

Nick Bartlett: FFS anything else they want to throw at us ??? 😒