The English Football League (EFL) has expelled Bury FC from League One, after a prospective buyer withdrew their interest in the club following due diligence. In a 29 August statement, Bury said that the EFL had taken its decision despite being made aware of a ‘credible new bidder’ before the 27 August deadline. However, the EFL had already announced that the ‘credible new bidder’ had withdrawn its interest.

‘At its meeting on 24 August 2019, the Board agreed a short extension to 5pm today (Tuesday 27 August) to enable Mr Dale and the Club to explore the possibility of a proposed sale with C&N Sporting Risk Limited, with Mr Dale having accepted their offer’, read an EFL statement. ‘Following due diligence, C&N Sporting Risk Limited opted not to pursue its interest.

‘Recent events have highlighted how decisions taken at Bury FC over the last few seasons have caused the Club and individuals close to it significant financial distress and there are a number of matters which, in our view, will require further investigation’, continued the EFL statement. 

Steven Dale took over as the new owner of Bury FC in December last year. A club statement described him as a ‘very successful businessman’. He is listed as a Director of Terrapin Limited, which has overdue accounts, according to Companies House. His history shows himself as the sole Director of CJD Hollingworth Ltd., a property management company incorporated on Christmas Eve last year. He has also been a Director of eight companies that have been dissolved, five of which have the same address and postcode.

Local MP James Frith has written to Debbie Jevans, Executive Chair of the EFL, highlighting that his insight into ‘financial dealings at the club’ have revealed:

• Lending agreements that have seen ‘close to 50% of the principal sum’ being paid as an ‘introductory fee’ to unnamed third parties, yet being required to be repaid as part of the loan agreement to Bury FC;
• The inclusion in the CVA of a £7 million debt to RCR Holdings, a company incorporated on 16 July this year, with just £100 of share capital.

‘This date of incorporation was just two days before the CVA was passed (on the 18th of July), which RCR Holdings played a significant role in facilitating the passing of, due to the size of their debt’, writes Frith (full letter below). ‘In my eyes, this raises serious questions about the relationship between Mederco (and their administrators), RCR Holdings and the current owner, which I believe require time to be investigated by both yourselves and any prospective buyers’. Stewart Day, Bury FC’s former owner, is listed as a Director of Mederco, which entered administration in March, with over £27 million understood to be owed to creditors.

Promoted then demoted, distinction now extinction faces us… I have sent the following letter to the @EFL Chair Debbie Jevans outlining my case to suspend the expulsion order facing @buryfcofficial and give us the time we need in order to survive. #UTS pic.twitter.com/1xNRjtJzE0

— James Frith MP (@JamesFrith) August 19, 2019