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How Dave King killed off the Three Rebel Bears

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gazeboThe Three Rebel Bears have revealed that Dave King’s call for an EGM killed off their chances of saving Sevco.

After seeing the rebels buy up 19% of shares on December 31 Mr King followed their example by snapping up 16% of shares in the company that runs the club from the open market.

The Rebel Bears were deep in negotiations with the current directors when their cunning plan was brought to a halt by Mr King, who was once described as a glib and shameless liar by a South African judge, moved the goal posts by calling for an EGM.

A spokesman for the Rebel Bears revealed: “At one stage during the negotiations we indicated we could increase our funding package to £10m to match the Sport’s Direct facility and indeed provided proof of funds in excess of this amount.

“However, after the EGM was called we felt that agreeing an excessive long term loan package with a board who may be removed in six weeks was not appropriate.

“We were subsequently advised by Derek Llambias that our funding offer would be difficult for the board to accept if we did not provide irrevocable undertakings to vote against EGM resolutions to remove certain existing board members. We felt this was completely inappropriate.”

Turning their anger to the latest crisis loan the rebels spokesman added: “The announcement from the Board suggests that the SD facility is interest free but the loss of revenue to the club from the transfer of 26% of the share capital in RRL and 50% of the shirt sponsorship proceeds from 2017/18 equates to an annual interest rate significantly higher than our offer and probably in double digits.

“Security for the SD facility involves the club’s registered trademarks and a floating charge over the club’s assets. This is disadvantageous to the club compared to the security required under our offer.

“It appears that the only measure by which the SD facility could be considered favourable to our offer is in respect of the quantum and duration of the second tranche of £5m but there appears to be some uncertainty as to whether this will actually be required and it is subject to further due diligence by SD.

“We fail to see how the SD facility can be described as better for the club than the funding offer we made. It isn’t and should not have been accepted if the best interests of all the shareholders were considered. Acceptance of the SD facility will do nothing to repair relationships with the fans which is critical in improving the revenue streams of the club.”

Meanwhile Sevco chairman David Somers was delighted by the Mr Ashley deal telling Sky Sports: “I think it is a great deal. I’m really pleased to get some money into the club. It is just over 12 months since I became chairman and I had three goals.

“One was to make sure this great club never, ever goes into administration. The second one – there was no money when I joined the club so (I wanted) to get some money into the club. This deal really moves us a long way to getting some decent money into this club.

“The third goal was all about the football. We’ve got to get this club into the Premiership, into the Champions League and this sort of money will really help us do that.”

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