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Profile: Ken Bates
Ken Bates was a participant or observer in the following events:
Chelsea FC owner Ken Bates agrees to sell the club to Russian oil and aluminum mogul Roman Abramovich for £140m. £80m of the money will be spent paying down debts Chelsea has recently accrued. £59.3m will be used to buy shares in the parent company, Chelsea Village, which are valued at a mere 35p each. Bates bought the club for £1 in 1982. The deal is the biggest in British football history. A statement issued for Abramovich pledges that he will invest in the team. [BBC, 7/2/2003]
Leeds United enters administration due to debts of £35m that it cannot pay. In return, the Football League imposes a 10-point penalty on the club. Before the points deduction, it was all but mathematically certain that Leeds would be relegated from the Championship to the third tier of English football, as the club required a series of freak results on the last day of the season to stay up. However, relegation to League One is now a mathematical certainty. Had Leeds gone into administration after the last game of the season, the penalty would have been applied at the start of the next term. The auditing firm KPMG is appointed Leeds’ administrators and immediately agrees to sell the club back to chairman Ken Bates without the debt burden. The Independent writes of the administration and sale, “in effect Leeds could wipe out most of their £35m debt at a stroke, and suffer no meaningful penalty.” [Independent, 5/5/2007] However, due to a breach of league rules governing the conduct of the administration, the club will be deducted a further 15 points at the start of next season (see August 3, 2007).
Leeds United chairman Ken Bates falsely claims to the Royal Court of Jersey that he jointly owns Forward Sports Fund, the company that owns Leeds. According to Bates, there are two “management shares” in Forward; he has one, whereas the other is held by his financial advisor Patrick Murrin, who is based in the offshore tax haven of Guernsey. Forward is registered in the Cayman Islands, another tax haven. However, it will later emerge that the two “management shares” do not entail ownership of Forward, and Bates does not hold either of them (Murrin has one, and Peter Boatman, a Geneva-based administrator, has the other). Forward is actually owned by the holders of 10,000 shares in it. Bates will correct this statement later in the year, calling it an “error.” It is unclear how Bates, an experienced businessman, came to believe he was the part-owner of a business worth several million pounds, when he apparently has no interest in it. [Guardian, 9/30/2009]
Leeds United bans all Guardian reporters from its stadium, Elland Road. The ban is in response to a series of articles written by Guardian columnist David Conn about the mystery of who actually owns Leeds. [Guardian, 10/19/2009] For example, three weeks previously Conn published an article highlighting the fact that the club’s chairman, the controversial Ken Bates, had falsely claimed to own the club (see January 2009). Leeds is owned by Forward Sports Fund, a company registered in the Cayman Islands and administered by the Geneva-based Chateau Fiduciaire. However, the public does not know who owns Forward Sports Fund. According to Conn, the question of Forward’s ownership is important because of the role it played in the club’s insolvency in 2007. [Guardian, 9/30/2009]
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