Morecambe FC receive suspended points deduction by English Football League

Morecambe FC have been given a suspended two-point deduction by the English Football League.

The penalty has been imposed after the Shrimps failed to report to the EFL on five separate occasions, non-payment of amounts owed to HMRC within the required two working days.

The deduction will be activated if they fail to notify the EFL of any future HMRC defaults before the end of June 2026.

The sanction was imposed following an inquiry by the Club Financial Review Panel (the CFRP). This independent, multi-disciplinary group makes determinations on matters concerning financial regulations on behalf of the EFL, and was set up in December, 2022.

The CFRP includes members with accountancy, legal and football expertise.

The club said they accepted and acknowledged the ruling, stating that the issues arose due to key vacancies at the club not being filled, and against the backdrop of their current ownership issues.

Back in April, former Chief Executive Ben Sadler announced he was leaving the club at the end of last season, to take up a role at Walsall, with Rob Smith taking up the role of General Manager at the Mazuma Mobile Stadium last month.

A Head of Finance post was advertised in the summer, and has since been filled.

Morecambe FC added that since July, all payments to HMRC had been made and were currently up to date.

In a statement, they said: ‘’Following the Club Financial Reporting Unit's statement, the Club acknowledges and accepts the ruling regarding breaches between 27th September 2023 and 1st July 2024.

‘’We also appreciate the Club Financial Reporting Unit recognition of our consistent cooperation throughout the enquiry, including our timely responses to information and meeting requests, despite the challenging circumstances faced by the club since July, including the loss of key personnel and ongoing ownership issues.

‘’We are pleased to report that all key roles vacated during the Summer have been filled, and the club is up to date with all HMRC liabilities, continuing to settle these obligations on time since July.’’

The full decision can be seen here

Last season, Morecambe FC were subject to a registration embargo of new players, which lasted 115 days following delays in payments of VAT due to HMRC, which were eventually settled via a ‘Time to Pay’ agreement, and led to the Shrimps announcing the signing of 15 players on one day in July, after the matter was settled.

The club were also deducted three points in April for a breach of financial regulations relating to failure to adhere to an agreed decision imposed in August 2023 after the club failed to pay players on time.

Morecambe FC has been up for sale officially since September 2022.

The English Football League has to approve any party wishing to take over the club.