TPC Press Statement 16 March 2013
- 1. Press Statement onbehalf of The Pars Community For Immediate Release (16 March 2013) THE PARS COMMUNITY RESPONDS TO MR JOHN YORKSTON The Pars Community (‘TPC’) formally withdrew from discussions with the DAFC appointed Steering Group (‘Steering Group’) yesterday, and did not intend to make any further public statements, as we believe all efforts should now concentrate on saving our failing football club. However, TPC has noted the statements made by the club’s Chairman, Mr John Yorkston, on Friday 15th March with a level of surprise approaching incredulity, as they are not factual. In our view, Mr Yorkston’s statements are merely a smokescreen for the club’s inability or unwillingness to accept or reject TPC’s final and non-negotiable proposal by the deadline set by us. Mr Yorkton never attended any of the numerous meetings held between TPC and representatives of the Steering Group, all of which were undertaken in a professional and dignified manner. So much so, that on Thursday 14th March 2013, representatives of TPC personally thanked Mr Bob Garmory and Mr Stephen Taylor for their efforts at a wider public meeting of supporters. In addition, Mr Ross McArthur of TPC also formally thanked Mr David Ovens (Mr Masterton’s representative) in person later that same day, and had also thanked Mr Jim Leishman personally a couple of days previously. We have considered a line by line correction of Mr Yorkston’s statement, together with a release of documentation including relevant e mails, but think that doing so at this time would merely further distract Mr Yorkston from his duty as a director of the club. He and the rest of the Board of Directors need to address as a matter of extreme urgency and priority, the solvency situation of the club they have (for many years now) acted as custodians for. We understand this. It should be noted that at no time did The Pars Community (TPC) formally agree to invest any money in the club before a due diligence process had taken place. In addition, at no time did the club formally request an escrow from TPC, which would in itself be most unusual business practice, or even formally request a more normal and acceptable “proof of funds” letter from a bank. Financial transparency is important to anyone who espouses community ownership of a football club. This includes the provision of audited accounts, which should be filed on time at Companies House, and thus made available to the public. The club accounts were due on 28 February and Mr Yorkston should be aware that it is not usual business practice to put down money in order to see accounts which should already be in the public domain by law. It is very difficult to invest in a company which is in financial distress. It becomes impossible when the opportunity to look at what is happening within that company is not made available. 1
- 2. In our model,hundreds and possibly thousands of Pars supporters will control the club. We cannot advise people to join with us in an investment if there is no understanding of the risks involved. It is important for supporters to understand that Mr Yorkston should be well aware of the financial worth of the backers of the TPC, since they have both lent and gifted the club and its wider group structure, a seven figure sum in the recent past. In addition, one of TPC’s backers advanced the club a further £250,000 in June 2012 against this season’s parachute payment, to provide immediate “cash flow” in the summer. The same gentleman has provided many other exceptional items to facilitate personal support for Mr Masterton, including paying £20,000 towards the club’s September 2012 payroll. Indeed, at the personal invitation of Mr Masterton on 10th March 2013, some of the backers of TPC were invited to meet with his representative Mr David Ovens to negotiate, fully aware that they had the personal funding the club so desperately needs. Meetings took place on the 11th and 12th March 2013. On 13th March 2013, a current board member then e mailed the gentlemen concerned, highlighting the actions being taken by HMRC and stating that it would be important to be able to confirm to HMRC that funds were available to meet what they were seeking from the club at this time (£134,000, rather than £250,000 as suggested in Mr Yorkston’s statement yesterday). The e mail also put forward a thought process that if these funds were to be consigned in a separate bank account and were agreed to be paid over to HMRC on conclusion of any agreement, then that may prevent HMRC taking immediate legal action. The e mail then asked the gentlemen for their thoughts on this suggestion as a matter of urgency, given that time was of the essence for HMRC. The gentlemen did not consider that it was their responsibility to provide these funds when a deal between the current owner and TPC to save the club had not been agreed. In addition, an offer was made on behalf of TPC in a meeting on 7th March with the Steering Group, attended by independent representatives of the Pars Supporters Trust and Supporters Direct, to underwrite £250,000 of new investment in the club. This offer was not taken up. TPC sincerely hope that all parties can move forward with dignity, and look to the greater task at hand, which is to create a sustainable future for DAFC. However, TPC will defend its position robustly in the event of any further inaccurate information being presented. ****** ENDS ****** For further information, please contact Sam McEwan, McEwan Partners E: s.mcewan@mcewan-partners.co.uk D: 0131 220 6829 O: 0131 220 6779 F: 0131 226 7366 M: 0785 090 5702 Full details of TPC’s vision for the club can be found at www.thepars1885.org 2