Morecambe co-chairman explains EFL embargo

Ahead of the Shrimps’ Easter programme, it had been revealed earlier on Thursday that the club was under an embargo after failing to comply with EFL regulation 17.3, concerning payments to HMRC.

The Shrimps had initially declined to comment on the development but a statement issued by Mr Howse on Thursday afternoon has sought to try and explain the situation.

He said: “With reference to the EFL embargo in respect of sums due to HMRC. The matter relates to VAT and is a highly unusual circumstance whereby the club is actually paying sums due in advance of those monies being due back to the club.

“The matter has nothing to do with the current sale of the club and its ownership.

“Due to the way the matter is being orchestrated by HMRC, it has been reported to the EFL and, under the rules, triggers an embargo.

“The EFL are, and continue to be, in dialogue with the club and are communicating with HMRC, who are fully appreciative of the highly unusual circumstance and have been supportive of the club.

“To try to put it in simple terms, we have to pay for something where we have done nothing wrong before we are refunded, so essentially, paying for something twice.

“We hope to get the matter resolved as soon as possible.”