While the Scottish media, led by the BBC, has provided token ‘cut n paste’ coverage of the cold-shouldering of Dave King the South African based Business Insider has taken a closer look at the ruling.
Dubbing him as ‘the man who beat SARS (South African Revenue Service) Business Insider goes underneath the statements issued yesterday from the Takeover Panel and from King as the chairman of the club from Ibrox.
In much the same way as paying the equivalent of £37m to avoid a 40 year prison stretch can be viewed as a favourable result the same principles can be applied to yesterday’s ruling from TOP.
Banks and other institutions may also avoid dealings with him entirely.
King won’t be mounting a takeover of any UK firm any time soon but with a financial pariah in place his fellow directors at Ibrox must be under pressure to ditch the son of a Castlemilk policeman.
Metro Bank provide the club with day to day banking facilities while a crisis loan from Close Brothers helped keep the lights on up until season ticker ticket time in May. Continuing to deal with a company where King is on the board could be a lot more bother than it’s worth.
While the BBC and others look the other way some serious questions will be getting asked at Close Brothers and Metro Bank about their exposure to King.
Helping their decision making process Business Insider reports:
Dave King famously “beat” the South African Revenue Service (Sars) when, in 2013, he agreed to pay more than R700 million to settle a tax debt – which Sars had originally estimated at well over R2 billion, while also accusing him of fraud. But King this week suffered a major blow in the City of London, one which could make it difficult for him to engage in business in Britain broadly, and even threatens his control of the Scottish Rangers Football Club, which he chairs.
On Friday the powerful Panel on Takeovers and Mergers, known more simply as the Takeover Panel, ruled that King “should be cold-shouldered for a period of four years”.That will block him from working with regulated entities in the United Kingdom on business deals involving takeovers. Banks and other institutions may also avoid dealings with him entirely.
In 2015 led by Stewart Regan the SFA approved King’s appointment despite being a director when the old club went into administration and over 40 convictions in South Africa.