Rochdale Hornets have asked playing and coaching staff to take a pay cut due to financial struggles at the club.
The Championship club held discussions with playing and coaching staff last week over potential payment reductions this season. The talks are still ongoing and the Hornets are working closely with the playing group to resolve the matter as soon as possible.
Unexpected poor commercial performance in 2017 combined with inaccurate financial information in advance of a budget setting meeting means there is now a forecast deficit heading into the 2018 campaign.
According to a statement from the club, the board and senior management recognise the situation this presents and are taking appropriate action to recover the situation.
Rochdale claim the deficit is down to two headline sponsors facing financial difficulty in 2016/17 and subsequently being unable to fulfil their sponsorship commitment which resulted in a circa £20,000 loss to the club.
And that, coupled with unaccounted costs for playing in the second-tier as well as struggling to attract new sponsors for 2018 have also contributed to the potential debt.
Some players are believed to have agree to the reduction in pay but others haven’t, with the club being at risk of losing players ahead of the Championship season starting in February.
Hornets CEO, Steve Kerr, said in a statement: “This is far from an ideal situation but we are working with the players and their agents to reach an agreement on making some short-term savings.
“In addition, every effort is being made to cut operational expenditure and generate new income streams.
“The club stands on the brink of a great season with a team hungry for success and is determined to overcome this temporary setback.
“At the recent AGM, a decision was made by the membership to explore changes to the investment model of the club and as such, the board is currently weighing up a number of options.
“This will not only solve the current issue but it will ensure a stable future for the club that could allow it to grow in the Championship.”