Rochdale Hornets Face Financial Crisis Ahead of New Season

Rochdale Hornets, founder members of the Northern Union in 1895, face a race against time to start the new season after their shareholders voted to take the club into administration and avoid a winding up order. The club are now hoping that a consortium comes forward to form a new company, less than a month ahead of the start of their Northern Rail Cup campaign.

The club were due to be wound up at the high court tomorrow over an unpaid £55,000 tax bill to the Inland Revenue, but have instead been placed in the hands of the Rugby Football League's approved administrators O'Hara's of Leeds. The Hornets chief executive, Ken Oldham, confirmed that the club's total tax deficit is around £155,000, with a similar amount owed to other creditors, not including director's loans.

"Considering that I've been connected to this club all my life, it's very sad to be in the position to preside over its demise," Oldham said. "But there was no other option available to us. The last month has been terrible, but at least now a decision has been made by the shareholders, it's taken a weight off everyone's shoulders."

Rochdale presented their petition to the high court in Leeds today and are now awaiting a court date hearing, which they hope will be confirmed for early next week. "The club has almost no assets," Oldham added. "Our shares in the stadium company are held by the RFL, and they cannot be sold unless the RFL approves the sale. All we've got at the moment is a bit of kit and some fixtures and fittings in the office – nothing else."

One option could be to link up with the town's professional football club, who recently announced their interest in preserving the Hornets' name and who share their Spotland home. Other options may materialize, although Oldham confirmed that none had been officially forthcoming yet.

An RFL spokesman said: "We are talking to a couple of groups who might be interested in working with the club going forward."

Even if a new company is formed in time for their opening Northern Rail Cup match with neighbors Oldham on 8 February, they are likely to start the Championship One league season in March on minus nine points as part of the RFL's insolvency laws. They have already lost two players to rival clubs, though the majority of the squad has continued to train under their Australian coach Darren Shaw.

The Leeds Rhinos coach Brian McClennan has signed a one-year extension to his current contract, tying him to the Super League champions until the end of 2010.