A POWERFUL alliance of Celtic ''rebels'' is poised to make an offer to
inject nearly #20m into the club in what it says will represent the
showdown to wrest control from the ruling Parkhead dynasty.
The fine details are to be worked out at a meeting at a secret venue
within the next 10 days and the plan is to call an emergency general
meeting of the club when the details of the offer will be put to
shareholders.
The men behind the plan to pump the much needed capital into the club
have all previously expressed interest but they say they have now
resolved hitherto insurmountable differences of opinion and are now
working to a common purpose which is to have the affair resolved by
Christmas at the latest.
They have said that if this latest initiative proves unsuccessful then
they will formally renounce any further interest in acquisition.
The Herald understands that the new financial coalition will see
expatriate Scot and North American businessman Fergus McCann putting up
the sum of #12.5m and the ''What Everyone Wants'' multi-millionaire
Gerald Wiesfeld, who sold his store chain for #46.7m three years ago,
providing a further #3m.
Former Celtic director, Glasgow property developer Brian Dempsey, will
put up #1m as will Edinburgh businessman John Keane and Bermudan
tax-exile Eddie Keane.
Lawyers and accountants representing the five men are meeting this
week to put the finishing touches to the package and next week, at an
overseas venue, the ''rebels'' will sign a binding agreement.
They believe that Celtic's financial condition continues in a parlous
state and that the accounts due out in October will reveal debts of more
than #10m and an operating loss of almost #2m last season.
A financial review by accountants Price Waterhouse for the financial
year ended 1992 showed that the Parkhead club had incurred a pre-tax
loss of #3.2m and the bank overdraft was said at the time to be some
#4.6m. Celtic's financial deficit was well in excess of all other
premier division clubs combined.
Mr McCann and his colleagues are hoping that the Bank of Scotland,
which carries the Parkhead overdraft, will bring its influence to bear
once the promise of fresh cash is turned into a legally-binding
document.
Yesterday, a Bank of Scotland spokesman said that it was not possible
to discuss the situation because of client confidentiality rules.
The cash injection planned by the rebels would mean a fresh share
issue and requires approval from existing club shareholders. Such a
strategy would require a two-thirds majority.
The ruling Kelly-White family dynasty and its supporters hold in
excess of 53% of the existing share issue.
The Herald understands that this approach particularly angers the
current directors because it would, to all intents and purposes, mean
that their existing shareholding was worthless.
Mr McCann is thought to favour the formation of a ''new'' Celtic
company backed by their fresh money. It would run in parallel with the
existing Parkhead set-up.
Another strategy, favoured by Mr Dempsey, is to commission an
emergency general meeting of all shareholders at which the new proposals
could be given a wide airing.
In both cases there would be a requirment to hold an egm and the
Dempsey strategy would short-circuit the need to set up the parallel
company.
The rebels, who claim to have the support of around 50% of
shareholders, are banking on splits appearing in the Celtic board or the
ruling dynasty being put under pressure to accept the offer of new
capital by the Bank of Scotland.
The members of the board -- chairman Kevin Kelly, Dr Michael Kelly,
Chris White, Tom Grant, Jack McGinn, David Smith and James Farrell --
have signed a legal document which has the effect of binding them
together in a pact.
The rebels plan a Parkhead board headed by Fergus McCann, who would
also be chief executive. He would also be free to nominate two
directors. The other board members would be Mr Dempsey and Mr Michael
McDonald, Mr Weisfeld's stepson.
Next week's meeting of the five rebels will also discuss a plan to
place a five-year limit on their individual shareholdings after which
the shares would be offered for sale to Celtic supporters. The thinking
behind this is an attempt to ensure that no one individual keeps control
in perpetuity.
Mr Dempsey told The Herald: ''The present directors have had ample
opportunity over the last three years to put the club back on track.
They have failed dismally at every turn.
''We must have this thing resolved. I would hope that the position
will be resolved by Christmas. If we do not have a resolution by then it
is my intention to walk away from the entire affair.''
Last night the alliance's latest proposals were summarily dismissed by
Celtic chairman Kevin Kelly.
He said: ''We've heard it all before. Until a written, detailed
proposal is received we cannot take yet another deadline seriously. Both
Fergus and Brian Dempsey have 'gone away' many times before. Now,
despite promises to the contrary, they are reheating this cold kale at a
time that can only be disruptive for the team.
''This current proposal is #2.5m less than Fergus proposed in June.
And what has happenened to the heavy response claimed from fans willing
to put in #600 each?''
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules hereComments are closed on this article