Row over Morecambe FC debt as ex-directors' firm issues winding-up petition against club

A company set up by two former directors of Morecambe FC has issued a winding up petition against the club over a £56,000 land debt.

Graham Hodgson and Nigel Adams of Ascot & Ryley LLP issued an open letter to Shrimps fans saying they have been "left with no option" but said they will withdraw the petition if payment is made.

A winding-up petition is a serious legal action which can be taken by creditors, whereby an application can be made to the court to close or ‘wind up’ a company.

Mr Hodgson was a director of Morecambe FC from 1992 to 2013 and is also a former vice-chairman. Mr Adams, also a former vice-chairman, was a director from 2012 to 2016.

Both regularly attend Shrimps games and said they have a "deep passion for the club".

Their open letter came after Morecambe FC issued a statement on Tuesday saying they disputed "the new repayment terms being claimed" by Ascot & Ryley LLP, and had made "several attempts to resolve this matter amicably and in a manner which respects the terms originally agreed with the club".

They also said Ascot & Ryley LLP were "seeking to change" the original repayment plan via a clause in the agreement and they did "not believe that unilaterally seeking to enforce it in this way is in the best interests of the club or its true and loyal supporters".

The club's statement followed news of the winding-up petition, which was filed on April 30, being posted on social media by other sources.

The dispute centres around a piece of land close to the Mazuma Mobile Stadium, home of Morecambe FC.

The open letter from Mr Hodgson and Mr Adams, sent to Beyond Radio on Wednesday, says the money owed is "undisputed and significantly overdue".

"Our situation in this regard is now public knowledge, and we wished to explain to all stakeholders exactly how we arrived at this position," it says.

"In February 2013, Nigel was a director of the club and Graham was vice-chairman.

"The club had cashflow issues and to resolve this, Nigel and Graham offered to purchase land from the club located between The Hurley Flyer and what is now the new housing estate and fronting Westgate. 

"Ascot & Ryley LLP was set up for this specific purpose.

"This transaction was agreed by the board of directors and approved at a subsequent Extraordinary General Meeting of shareholders.

"The agreement included a clause giving the club the right to buy the land back, at a pre-agreed price, within 10 years from the purchase date.

"This gave the club much needed cash at that time.

"In August 2022, the club wished to purchase the land back from Ascot & Ryley LLP and a sale was agreed. This included an initial payment but with most of the purchase price deferred over the following five years.

"The deferred element was provided on an interest free basis, and the club gave Ascot & Ryley LLP a legal charge over the land as security for the outstanding loan.

"Payments were received satisfactorily until the summer of 2025.

"In August 2025, (then club owners) Bond Investments Group sold their majority shareholding to (new owners) Panjab Warriors Group.

"The agreement between the club and Ascot & Ryley LLP included a standard change of control clause, which both parties were aware of, and this states that in the event of a change of control in the club, any outstanding amount becomes immediately payable.

"At this point the balance remaining was £84,000.

"On or around the completion date, Ascot & Ryley LLP were requested to (a) give up the legal charge over the land (i.e. its security) and (b) agree to deferred payments for the balance comprising of £28,000 to be paid immediately; £28,000 after six weeks and the final £28,000 a further six weeks thereafter.

"To assist the new owners, we agreed to these terms.

"The initial payment was safely received but no further payments have been made.

"As a consequence of this, there have been numerous meetings and exchanges of correspondence over recent months during which various repayment proposals were discussed and agreed by the club.

"Unfortunately, none of these agreements were then honoured by the club."

They said the company then issued a Statutory Demand on February 3 2026 but "no response was forthcoming within the prescribed 21 days".

A further meeting was held at the club on April 18, they said, where "once more, an agreement in principle was made to deal with the outstanding debt" but "within a few days, the club breached its pre-condition payment obligation".

"Whilst Nigel and Graham have a deep passion for the club, the broken promises leave us with no option but to issue our own winding-up petition and to follow that through its proper route, unless payment is made," they continued.

"Of course, if the club repays the debt, and the legal process allows us to, we will withdraw the petition.

"We don’t wish to comment further at this time but hope this open letter addresses most of the questions that supporters may be asking."

On Tuesday, Morecambe FC issued a statement, saying they had "not received any papers or other notification" of the winding-up order and were "surprised and disappointed to learn of these developments".

"This relates to another legacy debt that the club was burdened with three years before last year’s takeover by Panjab Warriors and which dates back to August 2022," said their statement.

"The original terms offered to the club at that time involved a repayment schedule over five years to August 2027, which Ascot & Ryley has been seeking to change in recent months based on a ‘change of control’ clause agreed between the club’s former board of directors and Ascot & Ryley’s owners.

"The existence of such a clause was never disclosed to Panjab Warriors before or during last year’s takeover and the club’s owners do not believe that unilaterally seeking to enforce it in this way is in the best interests of the club or its true and loyal supporters.

"Whilst the club disputes the new repayment terms being claimed by Ascot & Ryley, it has been in recent discussions with the company in several attempts to resolve this matter amicably and in a manner which respects the terms originally agreed with the club in 2022.

"The club has disclosed this unwelcome development to both the National League and the Independent Football Regulator and will continue to keep its supporters informed of further developments.

"It will provide a further update as soon as it is able to do so and, in the meantime, thanks its supporters for their continued loyalty and support as its owners and senior management continue to do all they can to re-establish and maintain the club’s sustainability both on and off the pitch."

On March 16, a winding-up petition was filed against Morecambe Football Club.Limited by KPM Groundworks Limited over an outstanding debt.

On March 30, Morecambe FC said arrangements had been made to settle the payment, and the petition was later withdrawn and the case concluded.

A winding up petition was previously filed against Morecambe Football Club.Limited in August 2025 by the UK's tax authority HMRC (His Majesty's Revenue and Customs) prior to the takeover by Panjab Warriors that month. This was later withdrawn.

Other winding up petitions filed in 2016, 2017, 2018 and 2019 against the club by HMRC were either withdrawn, concluded or dismissed.

Morecambe FC were relegated to the National League North at the end of last season.

Panjab Warriors bought the majority shareholding in Morecambe Football Club from previous owners Bond Group Investments in August 2025.

The club had been up for sale for almost three years, having gone on the market in September 2022.

The protracted sale process included a series of tense back-and-forth public statements between the parties involved last summer, and Morecambe FC staff not being paid wages in June and July 2025, with the outstanding amounts only settled after Panjab Warriors took over.

Morecambe FC was also suspended from the National League on July 28, and unable to kick off the season as planned on August 9 2025, amid concerns over the club's ability to meet its financial obligations for 2025/26, again eventually starting the season after the takeover was complete.