..<\/p>\n\n\n\n
OUT OF ADMINISTRATION …. AND BEYOND<\/strong><\/p>\n\n\n\n ..<\/p>\n\n\n\n I started writing much of the material that appears on this site back in 2016. At that point I centred it around my trips to the many away grounds I had been to. It was designed to provide an outlet not only for memories of trips to places far and wide; but also on football in general and other things that have influenced and affected me.<\/p>\n\n\n\n In May 2017 I wrote a piece about Brisbane Road, Leyton Orient,<\/a><\/strong> who at that point were in the throes of battling against malign ownership. It left me thinking about ‘fit and proper persons’ and the extent to which ownership of many Clubs had left them bereft and looking at a visit from the grim reaper. I led on to outlining what had happened at EP after the administration episode had been concluded, and how it was a case of “out of the frying pan”. <\/p>\n\n\n\n Given that this section of the site has outlined in fair detail the travails of the administration period, it would be untoward to leave it there. The next couple of years were a textbook example of ‘how not to do things’. In researching things I had come across an article on \u201ctwohundredpercent\u201d<\/em><\/strong>, published in July 2011, a mere month before County began their non-league journey after relegation. Written by Mark Murphy, (originally available on the 200% website )<\/a> it is worth reproducing here, simply because it is not only a superb analysis but also tells a story of what happened and sadly what it led to. Let Mark take up the story:<\/p>\n\n\n\n <\/p>\n\n\n\n Stockport County director Lord Peter Snape declared in March 2009, one month before the club entered administration, that he wanted \u201cStockport County Trust to vote to relinquish ownership of the club,\u201d because if it \u201chad been run properly we wouldn\u2019t be in this mess.\u201d Snape now knows it wasn\u2019t as easy as it looked; and the consequences of \u2018his\u2019 consortium\u2019s \u201cmess\u201d are currently unclear. Last close season, Snape was part of the optimistically-entitled \u20182015 consortium\u2019 that bought County out of fourteen-months in administration which redefined the boundaries of the description \u2018fraught.\u2019 Twelve fraught months of \u20182015\u2019 saw County spectacularly relegated for the second consecutive season and the buck ready to be passed to another consortium faced with the same old, unsolved problems. This, as yet un-named, consortium, has avoided the tag \u2018mystery\u2019 as its leader, disturbingly-young Liverpool businessman Tony Evans, has already joined the club\u2019s board after making a reportedly \u201csignificant investment\u201d.<\/strong><\/em><\/p>\n\n\n\n The significance of the investment has given 27-year-old Evans the chair for, slightly bizarrely, \u201cthe next six weeks\u201d while his consortium colleagues undertake due diligence and decide whether to take the \u201coption of a controlling interest in the longer-term.\u201d And for the first time in ages, County are bidding \u2018significant\u2019 money for players. But this takeover is no fait accompli. With an almost depressing inevitability, Evans\u2019 business background is somewhat chequered. One recent venture, the modestly-entitled insurance brokerage Anthony Donald Evans Limited (ADE), went into administration last November with debts of \u00a31.2m. People who have worked with\/for Evans have contrasting views about him. And there is dispute as to the culpability for the debt, with claims that ADE itself was owed far more than \u00a31.2m. But ADE\u2019s administrators were moved to comment on the firm\u2019s \u201caggressive policy of writing insurance business at a low cost,\u201d and numerous customer complaints. And \u201cNew York-based hedge fund manager\u201d Mike Newton reached a similar stage as recently as March, only to take fright and flight having seen County\u2019s books. But revelations last month exposed the true nature of current takeover negotiations.<\/strong><\/em><\/p>\n\n\n\n County\u2019s modern problems date back to the club\u2019s 2003 sale to by then-owner Brendan Elwood to \u2018Cheshire Sports,\u2019 run by Brian Kennedy, who gave off the aura of building a Cheshire \u201csports family\u201d \u2013 he already owned Premiership rugby union side Sale Sharks, who moved into County\u2019s Edgeley Park ground. The deal was, shall we say, a better one for the Sharks than for County, who, to stretch the family analogy, were treated by Kennedy as almost the runt of the litter. Kennedy \u201cdid a deal\u201d with County\u2019s Supporters Trust, who took over the club in 2005 in a blaze of idealistic glory, only to be sunk by legacy debt and a groundshare arrangement described in May 2009 by Elwood as \u201csuicidal.\u201d Amid the problems, manager Jim Gannon led the team to League Two promotion play-off success in May 2008. But within eleven months, County were in administration after the familiar list of tax-based winding-up orders and struggles with loan repayments.<\/strong><\/em><\/p>\n\n\n\n A year of impenetrable faffing around followed as a consortium led by ex-Manchester City striker Jim Melrose repeatedly failed to satisfy Football League concerns over the consortium\u2019s business plan in the light of the Edgeley Park lease agreement offered by Kennedy, including \u201cwhether priority is given to rugby or football fixtures\u201d. And in the wake of County\u2019s inevitable relegation last spring, the 2015 group emerged as club \u201csaviours.\u201d They too had struggles at what should have been the i-dotting and t-crossing stage and it was only after two months of delays caused by \u201cserious and complicated issues surrounding the administration process\u201d that they were able to take ownership, paying \u00a3250,000 to take County out of administration.<\/strong><\/em><\/p>\n\n\n\n The \u2018new\u2019 board consisted of many old faces, including Snape, former Chief Executive Sean Connolly and the wife-and-husband pairing (in that order), Mary and Tony Gibbons. Chair was Alwin Thompson, former boss of\u2026 cake-makers Interlink Food. Mary Gibbons became vice-chair. Thompson\u2019s press statement confirming the takeover could easily have been from a Trust, with its emphasis on community and communication. But even before his eve-of-season rallying cry to supporters (\u201cget behind the revolution\u201d) problems had emerged, not least over the hiring of a manager. The consortium clearly saw Gannon, made \u2018redundant\u2019 before administration, as part of the club\u2019s future. But, for reasons at least partly beyond their influence, they were unable to appoint him. And eventual appointment Paul Simpson had the feeling of second or third choice almost from the start with rumours abounding about board divisions on the issue.<\/strong><\/em><\/p>\n\n\n\n Simpson was quick to \u201cexpress his disappointment\u201d after an early-season 4-0 loss to Shrewsbury which resembled the beatings County had taken in their relegation season, which fans hoped had been left behind. Simpson laid into the club\u2019s administrators, Leonard Curtis, for \u201cburdening us with high-earners.\u201d And he donned his sarcasm hat to add: \u201cI suppose we should thank him really, he\u2019s left us high and dry with contracts to honour on big wages. We\u2019ve got no money.\u201d Aside from assuming Leonard Curtis was a bloke, he was right. In early September, CE Connolly resigned, after rumours of his departure had spread since Simpson\u2019s appointment. And by January both Thompson and Simpson had gone, leading to yet more faffing around about a managerial replacement. Gannon was again in the consortium\u2019s sights. But again, they failed to get their man, who avoided County\u2019s frying pan to step into Port Vale\u2019s fire.<\/strong><\/em><\/p>\n\n\n\n However, the major problem was still the crucifying lease agreement. In April 2010, I wrote on this site that \u201call\u201d the 2015 consortium needed was \u201cto thrash out an agreement with the still ever-helpful Kennedy and the club will be saved (episode 94).\u201d My cynicism was not misplaced, as County\u2019s annual rent was revealed to be \u00a3135,000 and rising very fast indeed (to nearly a quarter of a million pounds within two years). In 2009 Snape had been critical of the groundshare agreement which \u201cnobody in their right mind would have signed\u201d as \u201cit meant the club was totally reliant on gate receipts\u2026 this has to be one of the first things renegotiated with Mr. Kennedy.\u201d But despite fierce linguistic and arithmetic efforts to portray \u201ca fair deal negotiated by the football club,\u201d the figures were greeted with dismay and anger by disgruntled fans.<\/strong><\/em><\/p>\n\n\n\n There were \u2018developments\u2019 (sorry) on the ground situation, however. And changes to County\u2019s board, both enforced and otherwise, revealed altered boardroom priorities. Ken Graham and Mike Clark became directors in September, County stressing that their sons had joined County\u2019s \u2018centre of excellence\u2019 in 2001 and that Graham\u2019s son Andy \u201cscored his second goal of the season last week against Macclesfield\u201d for County\u2019s youth team. But the key words were \u201c\u2026background is within the construction industry\u201d (Graham) and \u201c\u2026is a commercial property developer\u201d (Clark). County said \u201c(they) are aiming to spearhead the future of\u2026the football club with the provision of new sporting facilities within the borough of Stockport, which will help broaden the relationships of the Club within the football community.\u201d And it was also hoped these facilities would help \u201cbroaden\u201d bank balances. These hopes were raised with reports of an agreement between Stockport Metropolitan Borough Council and Kennedy to redevelop Edgeley Park as a \u201cCommunity Stadium,\u201d with revenue split between County, the council and Kennedy\u2019s Sale Sharks.<\/strong><\/em><\/p>\n\n\n\n Kennedy had, not for the first time, threatened to move the Sharks out of Stockport altogether, an obvious negotiating tactic, which left many fans frightened that whatever \u2018deal\u2019 the council and Kennedy concocted would be more in the council\u2019s and Kennedy\u2019s interests than County\u2019s. But many other fans were more cynical. \u201cI think the smell of money is overpowering the smell of football,\u201d noted one, as the club announced changes in their ownership structure which seemed to further separate the \u201cstrategic development\u201d of the club from the actual football; separating the potential money-maker (ground development) from the actual loss-maker (football). To \u201cassist the management team in the delivery of the strategic vision,\u201d Stewart Vann was elected to the board of Stockport Community Leisure Company Limited, the club\u2019s ultimate owner, and immediately appointed chairman. The club said Vann \u201chas been actively involved in both football stadium and sports ground developments in the borough,\u201d which was a truth but not the truth. \u201cMuch of his time is taken with his commercial property business,\u201d note chartered accountants Cassons, Vann\u2019s business advisers, which was more pertinent.<\/strong><\/em><\/p>\n\n\n\n Meanwhile, magically, takeover interest appeared. The afore-mentioned Newton emerged in mid-February. The club suggesting that County \u201clike other football league clubs, are on occasions approached by potential investors\u201d and that the board would, naturally, review any \u201cserious written offer of investment\u2026if it was considered to be in the best interests\u201d of the club. However, almost as soon as the club eventually confirmed Newton\u2019s well-known interest, he withdrew it, claiming he and the board \u201cwere unable to agree on a combination of things,\u201d and noting (in March, remember) that \u201cthe financial side of any club that\u2019s relegated deteriorates\u201d and that \u201cthe playing side\u201d was \u201cclearly in a terrible state.\u201d<\/strong><\/em><\/p>\n\n\n\n ..<\/p>\n\n\n\n As an aside at this point I disagree slightly with Mike. Newton was never more than a chancer; and never, (to my admittedly limited knowledge), made an offer. But it doesn\u2019t detract from the ongoing story. Back to Mike \u2026<\/p>\n\n\n\n ..<\/p>\n\n\n\n The not-universally-popular Mary Gibbons had become County\u2019s acting chair in January. And genuine lifelong fan though she was,<\/strong>,<\/em><\/p>\n\n\n\n ..<\/p>\n\n\n\n (<\/strong>that\u2019s open to question as well \u2013 her real love was always declared to be Spurs, and some may suggest that her objective has never been more than involvement in a football club. Since parting company with County she has pitched up at local clubs Hyde United and Stalybridge Celtic in turn)<\/strong><\/p>\n\n\n\n ..<\/p>\n\n\n\n she simply wasn\u2019t qualified to run a struggling club\u2026certainly not one struggling this badly. Her public sycophancy towards Kennedy also grated. She told BBC Radio in February that \u201c(Kennedy) has done us a great deal on the rent\u201d drawing a mixture of incredulity and venom from supporters. Gibbons wasn\u2019t helping herself. But even her strongest critics admitted she was \u201cseemingly getting no support\u201d from other, supposedly more savvy 2015 Group members. Gibbons, and husband Tony, resigned in May \u2013 shortly after the pressure got too much, to judge by her complaints about \u201cmis-truths and nasty comments\u201d from fans. And early last month, it became crystal clear what some of the \u2018more savvy\u2019 board members had been up to.<\/strong><\/em><\/p>\n\n\n\n The Vital Stockport website came into possession, and published the contents, of e-mails between \u201ca party keenly interested in buying\u201d County and \u2018commercial property businessman\u2019 Vann. The email to the club, from Rod Gunner, Power Snooker Limited chairman, was a lengthy trawl through their proposals and the \u201cunforeseen difficulties\u201d which had caused \u201cwhat some may perceive as hold-ups and delays.\u201d Gunner set out his keenness to follow the \u201cCommunity Stadium\u201d model and reported on \u201cthe last two months vigorously exploring the way in which we could work with Stockport County.\u201d But the tone of the email was one of trying to persuade sceptics, the most persuasive argument being \u201cevery shareholder will be guaranteed that their total investment in the club, including all loans, will be repaid in full.\u201d Vann\u2019s reply \u2013 the only one \u2018leaked\u2019, even though the email was sent to all shareholders \u2013 showed how sceptical he was. Two hours after receiving the email, he wrote: \u201cIf I understand correctly\u2026we get our money back? (at some point in the future yet to be established). But we walk away from \u00a315\/20m or more of development profit?<\/strong><\/em><\/p>\n\n\n\n \u201cAs you know,\u201d Vann continued, \u201cthe shareholders comprise of football club fans and property developers. With respect, your email gives no comfort at this stage from my perspective.\u201d The best interests of Stockport County Football Club, eh? Rumour and counter-rumour has abounded about the make-up of the board\u2019s divisions over this offer. But the announcement of Evans\u2019 directorship suggests that Vann, along with co-director Mike Clark (according to the more common rumours) were one side of the divide. And that football interests have, at the very least, not yet been submerged by \u201cdevelopment profits.\u201d Evans\u2019 appointment of former German international Dietmar Hamann as manager and his classy suggestion this week that \u201cthere\u2019s more money knocking around\u201d (administrations notwithstanding) has led to a reversal of perceptions. County are, for now at least, big spenders. But too much has gone wrong at County and other clubs in recent times and too little is known about the source of the money knocking around for anything to be taken for granted by County fans. Scepticism should still reign. And, as I suspect many of you feared, this takeover tale is far from over.<\/strong><\/em><\/p>\n\n\n\n ..<\/p>\n\n\n\n That took us up to the start of the 2011\/12 season, our first season in non-league. It was far from the end of the story. Evans soon disappeared. The next phase was the ‘Blue Skies Thinking’ days of Fearn and McKnight; the appointment of Kalezic and the descent into regional football.<\/p>\n\n\n\n ..<\/p>\n\n\nPreviously: Beyond Admin – Company Structure<\/span><\/a>\n\nNext: Beyond Adminstration – Summer 2011<\/span><\/a>","protected":false},"excerpt":{"rendered":" OUT OF ADMINISTRATION …. AND BEYOND I started writing much of the material that appears on this site back in 2016. At that point I centred it around my trips to the many away grounds I had been to. It was designed to provide an outlet not only for memories of trips to places far […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","footnotes":""},"categories":[12],"tags":[],"class_list":["post-5050","post","type-post","status-publish","format-standard","hentry","category-2010s"],"yoast_head":"\n