I was reminded today of what a senior Sevco director said in late 2014 when he was asked about the prospect of Dave King and his concert party taking over.
The chap in the Blue Room stated that King as chairman could “usher in a decade of litigation”.
Last week, the current Sevco High Command were ushered to a meeting late on Thursday.
It was only then that they were informed that there was due to be a High Court action in London the next day.
I find it a remarkable state of affairs that directors would have such short notice about a legal matter that directly concerned them.
Indeed, I think the vignette is instructive as to how the lines of communications are very tight at Sevco now.
It is almost as if Dave is running a one-man basket of assets there…
As for the hearing itself, I’m told that it didn’t go well for KingCo.
Firstly, they wanted the case to be heard in the summer.
However, General Ashley had his legal team going at it and they asked for the first available date.
There are others in the frame for this retail car boot sale.
I’m told that Elite Sports claim that they have an indemnity from their dignified partners.
Perhaps it is some sort of side letter, I don’t know.
Meanwhile, I understand that the chaps in the Takeover Panel are considering their next course of action apropos King’s share offer.
They appear to have a binary choice:
- Either walk away and leave it to an individual shareholder to take further action against King.
- Double down and get back in court and oppose King themselves.
My Square Mile source didn’t say that there was a third option.
However, he did say that even if King wins this case against the Takeover Panel the reputational damage that has been done to the Ibrox brand is substantial.
Apparently, they have long memories in the City for this sort of thing.
Of course, Dave’s business plan in Glasgow is based on those who were born yesterday.
Moreover, given that he has the local media onside then it seems to be working for him at the moment.
The absence of any journalistic scrutiny on his Sevco dealings is something that he has been able to take to the bank since the Off Licence Putsch in 2015.