Dale Trust launches crowdfunding campaign to help fight Morton House High Court claim

The Dale Supporters Trust has launched a crowdfunding campaign to raise funds towards legal fees as it and eight members of the Rochdale AFC board face legal action from the company behind last summer's 'hostile takeover' attempt.

A High Court claim was filed earlier this month by a company called Morton House MGT and First Form Construction Ltd (Morton House), which was previously linked to acquiring shares in the club.
 

Read more: Morton House files High Court claim against Dale board and Dale TrustPublished: 11 January 2022

It is alleged by Morton House that the Dale Trust and the board have unlawfully caused prejudice to Morton House as a shareholder in Rochdale AFC; something which the Dale Trust and the board strenuously deny.

Owing to this being a dispute between shareholders, the litigation cannot be funded by the football club which means that the Dale Trust (a not-for-profit organisation) and the Rochdale AFC board (all of whom are unpaid for their work at the club) must bear the cost of defending what is often a notoriously expensive type of legal claim.

Last summer, it was alleged by the EFL that Morton House acquired shares in Rochdale AFC – directly from shareholders – in what has been described as ‘a hostile takeover’ by the club and Dale fans, with the aim of attaining a majority shareholding in the club.
 

Read more: 'Hostile takeover' of Rochdale AFC abandoned after 'investors' withdraw from EFL approval processPublished: 23 August 2021

Rochdale AFC was founded in 1907: since then, it has never had a majority owner. Presently, the club has over 300 shareholders, the majority of which are fans.

The attempted takeover by Morton House became subject to an EFL investigation into whether 'any relevant person(s) and/or any persons wishing to acquire control of the club complied with the requirements of the Owners’ and Directors’ Test (OADT)'.

The 'takeover' was abandoned in August after those involved withdrew from the EFL OADT test.

The EFL said at the time that “Morton House MGT, its directors, and representatives, have confirmed to the league they are refusing to co-operate with the league’s ongoing investigations.”

Because unfair prejudice claims can be very costly, the Dale Trust is hoping to raise £130,000 towards the costs of defending proceedings.

Any surplus remaining will be donated to Rochdale AFC Football in the Community Trust, a registered charity, which carries out community work and charitable projects.

A spokesperson for the Dale Trust said: “We believe that this is the first time that any supporters body has ever faced such a legal action and we are calling on the help of football supporters within the UK and from around the world to support us in resisting the claim that has been brought by Morton House which, if successful, could result in it being in a strong position to gain control of RAFC.

“Governance in football is a huge issue right now with the Tracey Crouch Fan Led Review, and we are of the opinion that the safest future for our beloved club is that it continues to be owned and run by supporters for the benefit of supporters and the community at large.”

The Dale Trust and the board have instructed HY Solicitors to act on their behalf. They have agreed to represent the trust and the board in this matter below market rates.

The Dale Trust will also be running a number of events over the next few months where all funds raised will go towards the campaign.

Donations can be made via Crowd Justice.