Rugby league club’s future ‘at immediate risk’ after HMRC demand
The future of rugby league club Halifax Panthers has been put in doubt after it was issued with an “order to pay” overdue taxes by HMRC.
Interim club chairman Lee Kenny warned in an open letter that “the future of the club will be at immediate risk” if the payment isn’t made.
The Championship club has gone public with its problems as part of a “call for support” as it seeks quick cash from sponsors and fans.
Staff and players were only paid half of their wages last week, with the club hoping to pay the balance next week.
The Panthers revealed that an expected “six-figure boost” to its income was “withdrawn at the very last moment” last week.
Kenny said: “Despite the efforts of our shareholders and directors, who have invested nearly £700,000, the current financial environment means we urgently need additional donations or access to capital to ensure we continue to move forward.
“It’s been a perfect storm that’s brought us here. Several of our sponsor companies have gone into administration, some of the original consortium members are no longer able to contribute as they once did, and the general financial uncertainty in the country, combined with smaller crowds, has left a large hole in our budget.”
Halifax played its first rugby match in 1873 and were founder members of the breakaway Northern Union, which became rugby league, in 1895. The club last won the Championship in 1986 and the Challenge Cup in 1987, and hasnot played in the sport’s top division, Super League, for 20 years.
Many sports clubs have struggled ever more since the pandemic, and the high-profile collapse of rugby union clubs Wasps and Worcester Warriors was a reminder that even professional sports clubs aren’t immune to going out of business.
It is a bad time for the rugby league club to hit a cash crisis as it has just two home games left in this season ahead of a long off-season. The usual cash boost from fans buying season tickets may be lessened if there is uncertainty around the club’s ability to start next season.
New Halifax MP Kate Dearden is meeting with Kenny and the club today to offer support.
She said: “The club is at the heart of our community and I know how much it means to the people of Halifax and league fans everywhere.”
Lisa Nandy, Secretary of State for Culture, Media and Sport, has first-hand experience of working to save a sports club after she was a key figure in Wigan Athletic emerging from administration in 2020.
The club is seeking sponsors, for its final two matches in 2024 and for longer-term partnerships, and for individuals to donate or loan money. It is also rallying fans and the community to attend this Sunday’s home match against Dewsbury.
