View from the Blue
Columnist: Lyndon Lloyd

Running out of road
7 December, 2004

Bill Kenwright: A seemingly endless stream of broken promises and hollow pledges is rapidly eroding the fans' faith in "Blue Bill"

My esteemed colleague's upbeat assessment of yesterday's two announcements was an interesting reversal of roles.  Michael, so often the sharp-tongued cynic, saw light at the end of Everton's seemingly interminable financial tunnel, whereas in our front-page editorial I, usually the more measured and optimistic, saw nothing but the front of an on-coming train... in other words, another massive disappointment.

Today, Paul Gregg released a statement announcing that True Blue Holdings, the company that he formed with Bill Kenwright and Jon Woods five years ago to complete the purchase of its majority stake in Everton and remove Peter Johnson, was liquidated last Thursday.

A couple of hours later, the club posted an announcement that Chris Samuelson, the Geneva-based investment banker heading up the proposed £12.8m Fortress Sports Fund investment in Everton, had requested a 14-day extension to the exclusivity clause they negotiated with the Goodison Board of Directors.  In other words, FSF apparently want another two weeks to finalise the first tranche of their investment package.

This would be all well and good had, firstly, they not had three full months since the September EGM — in actual fact a lot longer, since Kenwright had been in talks with them for weeks before their interest in buying a stake in the club had been leaked — to perform due diligence and raise the promised capital; and, secondly, the announcement not come on the eve of the AGM, not to mention so close to the opening of the January transfer window.

For the cynic — and let's face it, the longer this farcical situation continues, the more of us are becoming very cynical amount Kenwright's ability to deliver on his promises — two striking possibilities come to mind: firstly, Kenwright was going to use the announcement of the dissolution of True Blue at this evening's AGM to soften the blow of Samuelson's request to delay the investment deal and the doubts that would be raised about its veracity as a result; and secondly, that Gregg, reaching the end of his tether over the Kenwright's failure to secure a rescue package, stole his thunder by revealing the liquidation of TBH a day early.  If true, that leaves the Chairman with nothing with which to deflect criticism from shareholders at the meeting.

Were this latest setback for the fans' hopes of finally seeing David Moyes handed a transfer kitty worthy of the name an isolated incident, you could have sympathy for Kenwright and grant him some leeway.  Coming as it does, however, on the back of a litany of empty soundbytes and broken pledges, the indications are that the FSF deal is dead in the water and the Chairman is playing for time, the sands of which are running out for a man increasingly bereft of room to maneouvre.

From the misguided decision to re-sign Duncan Ferguson and the Kings Dock fiasco all the way through to this summer's unfulfilled promises, Kenwright has gone from Blue Bill, man of the people, to Billy Liar, as some fans have branded him.  And how can you blame them?  Forget about the past five years, in the period since the end of last season to now alone he has gathered enough rope with which he can be "hanged," so to speak.

First, there was the defiant pledge that Wayne Rooney would never be sold, that the Club wouldn't even entertain a bid of £50m (a stand I didn't particularly agree with) only to end up selling him for less than half that, with only half again paid up front.  Of course, there is the argument that Rooney wanted to leave, but when you view the events of the past few months as a whole (rumours that the decision to sell him dated back to April, the mysterious absence of Wayne from the merchandise catalogues and the sale of Rooney-related goods during pre-season, etc), it becomes easier to believe the conspiracy theorists' assertion that The Boy was sold off to keep the club out of administration.  Exhibit A: The mysterious £10m loan the club took out in March but only revealed in the annual accounts ahead of this month's AGM which was, conveniently enough, cancelled out by the first instalment from Manchester United for Rooney.

Second, there was the incident where, when asked by Alan Myers of Sky Sports if there would be signings before the August 31st transfer deadline, he insisted, "absolutely definitely," and words to the effect of "if Jon [Woods] and I have to sell off our homes there will be new faces at Goodison before the deadline."  I squirmed in my seat as I watched that interview with a nagging feeling that he was just digging himself an enormous hole.  Which is exactly what he did.

The £15m credit he secured from his pal, Philip Green, allegedly didn't clear the banks in time to provide funds for Moyes's transfer targets and the negotiations over Rooney ran right up until the transfer deadline itself, which left the manager empty-handed and staring an impossible first half of the season in the face.

Thirdly, there was the week of silence from Kenwright when challenged to match Gregg's own £15m investment proposal, followed by the bald-faced lie that he hadn't agreed to a 5pm deadline the following Friday when details of that deadline had been outlined on the Club's official website the preceding Monday.  He then seized the higher ground when sketchy details emerged of a proposed investment in the Club by a reclusive Russian paper magnate before the reports were quickly denied when Boris Zingarovich denied all knowledge of such an offer (presumably irate that his involvement had been leaked in the first place).

When the focus shifted to Boris's son Anton, only for his involvement to be denied as well, a bad smell started to emanate from the whole situation.  Eventually, Samuelson emerged as the man behind a Brunei-based investment group called Fortress Sports Fund who were looking to invest heavily in a sporting team.  Everton were to be their first project.  But his credentials have been questioned by everyone from Private Eye to former and current business associates.  Indeed, I had a telephone conversation with a colleague of Mr Samuelson's in the world of investment banking in August.  The proposed FSF investment was news to him but he laughed when I asked if Samuelson was likely to deliver the goods and said, "don't hold your breath."

Again, an incident to take with a grain of salt if viewed on its own but when added to the growing litany of failures, it just adds further weight to the skeptics' view that Kenwright, out of ideas, is hanging on to power at Goodison Park for as long as he can by throwing up smokescreens and delaying tactics.  His position allows him to lead the fans a merry dance because he has little to fear from them; after all, the minority shareholders can bitch and moan all they like, but they don't have the power to remove him.

Kenwright does have plenty to fear from Paul Gregg, however, a theory enforced by the fact that it was the pressure brought to bear by Gregg laying down the gauntlet over the summer and waging a PR campaign that forced the Chairman into action.  Since the liquidation of TBH, Gregg's position is now even stronger since there are no real impediments to new investors wanting to buy into the Club.  The Oxford-based businessman clearly has an agenda, but whether he is acting as an agent for change to advance his ambitions for Everton FC or to smooth his exit from the club altogether remains to be seen.

Matters have dragged on this far into the year simply because Kenwright has been bailed out by Moyes and the quite phenomenal job he and his team have done so far this season.  Had the team got off to a bad start, the fans, fearing relegation, would have had Blue Bill over a barrel baying for his blood if he didn't deliver the first tranche of the FSF investment without further delay.

And it looked for all the world as though the Fortress deal might just happen, but if it was definitely going to in the first place, there is no earthly reason why it should have taken this long.  The ratification of the FSF deal didn't need to be dragged out until the AGM; it could have been done any time between the EGM and now.  Kenwright must have known it wasn't going to happen because it was omitted entirely from AGM agenda released to the shareholders two weeks ago.  The skeptics were slated for daring to doubt the Chairman, but after these latest developments...?

So, where does all of this leave us?  A betting man would put money on the Fortress investment proposal disappearing into thin air when this latest two-week delay is over.  The question is, if Kenwright is indeed almost out of options, what might he and new CEO Keith Wyness do in an act of desperation within the next two weeks?  Might he make drastic concessions to Samuelson in order to force the investment through, and, if so, what should we make of the FSF head's suitability to eventually run Everton Football Club should, as is his supposed wont, he ultimately buy a controlling interest in the club?

And what of Paul Gregg?  Club insiders apparently loyal to Kenwright have warned against the leisure tycoon's intentions but his desire to remove Kenwright's options at the AGM with yesterday's announcement perhaps hints that he has a plan to bring in investors of his own, now possible with the removal of True Blue Holdings.  That may see the re-emergence of one Lord Grantchester to the scene and a restatement of Gregg's desire to bring Far Eastern money-men on board to provide the initial £15m investment he outlined back in August.

Certainly, Gregg now stands to benefit with this shift from TBH to private share ownership.  He can either cash in his chips by selling his stake to another investor, or he can seize the opportunity to take the reins at a club currently riding high in the Premiership and whose European aspirations can only be strengthened by the acquisition of new players to bolster the squad during the transfer window.

As for Kenwright, he has two weeks to prove the doubters and skeptics wrong by delivering on his promise, albeit couched in the oxymoron of an "absolute possibility," of Fortress Sports Fund providing a much needed cash boost to help ease Everton's £42m debt.  If it fails to materialise, there is a very real danger that he could be allowed to stall matters well into January and either leave Moyes penniless until the end of January — or recklessly increase the club's debt to fund player purchases, the model by which he has been running the club since the takeover in 2000.

It is again going to be an interesting few weeks in Liverpool L4.  Let's just be thankful to the gods that, thanks to the manager and his players, relegation, and the certain catastrophe it would represent, is not going to be an issue this season.

Lyndon Lloyd — ToffeeWeb

Reader Responses:

In September 2004, 70% of the vote on the site agreed that you were being unfairly harsh on Bill Kenwright. I can only presume that you are happy to still forward the minority view as your attacks on Kenwright continue.

I firmly believe the line that you take is unduly harsh and largely unwarranted. Yes, it is taking a long time to clinch the deal for the Fortress funds. But realistically how good a business proposition are we as a club? I would accept that it is Bill's job to make us into one, but please can we have a reality check here. Our club has been mismanaged off the pitch for a long long time now and to expect anyone to turn this around quickly is unrealistic.

Kenwright went out and brought David Moyes to the club. Even before he left in the summer, DM was the most important asset that our club had. Yes he has considered walking away but ultimately he has not. We know DM is a man of principle and he knows his stock is high and so he did not stick with the club through sheer employment neccesity.

Yes, if Kenwright fails to deliver the Fortress money, then questions have to be asked, but he has not failed it is merely taking time. The statement from Samuelson last night seemed to indicate that they are the ones that need to resolve money matters before a deal can be finalised. But you don't attack them and rightly so, presumably through concern at upsetting potential investors.

Don't get me wrong, I enjoy many aspects of the site and it does not fill me with joy having a pop at fellow Blues. Nor do I ask that you pop a halo over Bill's head. I merely ask for much improved balance. Think broadsheet and not tabloid. You are arguably an important part of the media for Everton fans so don't write stuff that the redtops would.

I am happy for you to print this email if you so wish. I'm equally happy to just have the chance to express a view to you as a site team.
Regards and here's to the Blues going from strength to strength.

Phil Houghton

Phil, we happily print your letter here in response to my article because, although it may seem that way, as a site we are not pushing any anti-Kenwright agenda here. We have always and will continue to print views from all sides of the debate and would welcome Fans Comment articles from fans who would like to take issue with the points I have raised.

I think the "tabloid" comparison is a little harsh. I don't feel that we are being sensationalist in any way, nor are we savaging Kenwright with the intent of destroying him the way a red top might. We are merely trying to call it how we see it and the weight of evidence seems to me to point to the imminent collapse of the Fortress bid. I don't dispute that investment of this kind takes time and lots of it but these negotiations have been going on for months now, due diligence was completed in September and the timing of this latest announcement just smacks of stalling tactics.

I would be happy to be proved wrong. I would love nothing more than for Kenwright to be successful in his attempts to land a financial rescue package from an outside investor and will make my apologies on this site if he does. But if he doesn't, let's not have the wool pulled over our eyes over this.
Lyndon Lloyd

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