Posts Tagged ‘dave king’

King still in play as financial chess game rumbles on

Tuesday, August 12th, 2014

Hugh Macdonald (a journalist that the Monkey has a lot of respect for), purports to analyse the financial machinations at Ibrox with a feeble chess metaphor to describe the potential re-emergence of Grandmaster Dave King as a knight in shining armour to save a company facing checkmate.

King has been working the City since at least March. His initial strategy was to canvass support for his plan to take the proxy vote for significant shareholdings and force change. This, increasingly, has been seen to be impractical, perhaps even unworkable, as long as the major players remain united within the Ibrox boardroom.

The pressure must be applied to the Beaufort Group that holds the majority of shares. This has been applied effectively by the strategy of some fans to withhold season ticket money. There has been much argument over whether this constitutes a boycott but it would be much more instructive to investigate the action’s consequences.

It has brought King back into play, despite the reluctance of some on the Ibrox board to deal with the South African businessman. King’s patience was criticised over the summer but he may just have played his cards astutely.

Rangers are searching for money and King claims he has it. This seemingly straightforward case of demand and supply, however, founders on the rocks of implacable politics at Rangers.

In some circles, King is viewed as a criminal and a tax-dodger – rightly so, since being convicted by the South Africa Prosecuting Authority after pleading guilty to 41 contraventions of section 75 of the South Africa Income Tax Act 58 of 1962 and being sentenced according to his plea agreement.

However, make no mistake – King has money; lots of it. And he is no pawn.

Expect a Zwischenzug sometime soon.

Rangers: Dave King cannot broker Ibrox compromise

Monday, November 4th, 2013

Interesting use of language from the BBC on the reasons why South Africa-based criminal Dave King has given up on his bid to become Rangers chairman:

King has been talking with both factions in the power struggle for boardroom control at Ibrox.

But he revealed no “consensus agreement” had been reached because “certain influential shareholders are unwilling to compromise”.

In other words, he’s given up because he would fail the Scottish FA’s ‘fit and proper person’ test, not to mention failing to meet the requirements of the Alternative Investment Market of the London Stock Exchange as they relate to individuals with criminal convictions controlling publicly listed companies.

Rangers boardroom battle: Dave King gets the all-clear from the Stock Exchange to return to Ibrox

Tuesday, October 29th, 2013

Update 2: The article has now been edited to suggest that Dave King may by free to invest in The Rangers International Football Club PLC. Unfortunately for the Daily Record, King does not need financial regulatory approval to spend what money he may or may not have.

Update: It seems the LSE is denying the quotes and that the Daily Record’s story is untrue. I’ve quoted the entire copy of the online article at the bottom in case it gets changed.

Classic Daily Record: headline does not reflect the content of the story and the quotes have been twisted to suit the agenda. John Ferguson writes:

Dave King has been given the go-ahead to return to the Rangers boardroom by the London Stock Exchange.

A spokesman for the LSE last night confirmed the businessman would be free to become chairman so long as Ibrox advisers rubber-stamped the move.

I had a look in the reports and there were these issues in South Africa, the other thing was that he had been on the board previously.

So the question would be whether these things would stop him taking a stake again.

I think the answer on both these points is they wouldn’t.

From the Exchange’s point of view if we are satisfied Rangers’ nominated adviser Daniel Stewart and Company has carried out the correct checks then he would be allowed to make this investment.

Note my emphasis above of the phrase “taking a stake”; it appears that the un-named LSE spokesman only responded to a query about whether King could invest in The Rangers International Football Club PLC, yet Ferguson eagerly reaches the conclusion that the response given means that King can – and will – become chairman of the company.

So, despite the Record’s best attempts, the LSE has not quite said King is free to join the board of The Rangers International Football Club PLC, merely that if the company’s nominated advisers have done their homework and King is clear of any legal impediments, he could invest.

There’s something of the Craig Whyte-esque myth-making about this story, especially the part about King arriving in South Africa “in the 1970s with £10 in his pocket but went on to build up a £200m fortune as a high-powered financial consultant.”

I’m not doubting King’s rise to riches, but as far as I am aware, he was transferred to South Africa in the 1970s by his employer, the Weir Group. It seems unlikely he would have only had £10 in his pocket if he was sent there to work by his employer, but the Daily Record sure loves a rags-to-riches story where Rangers are concerned.

The story also neglects to elaborate on the line about King setting up a stud farm with the famous golfer Gary Player. Only last month, King was forced to settle out of court after claiming Player failed to repay him a R6.1m loan in relation to said stud farm, having originally sued the golfer for R33m.

It seems relevant that a so-called multi-millionaire would be so unsure of his chances of recovering a £350,000 debt that he would be forced to settle out of court.

However, the most telling part of the article is a quote from the current Rangers manager Ally McCoist, who was quizzed following his side’s victory against East Fife at the weekend about King’s business dealings in Scotland:

I haven’t had a chance to talk to him in great detail but effectively it’s none of my business.

Quite right Ally: It’s none of your business.

Fact Howler 1: King did not pay the South African Revenue Service £44.75m. He paid £44.54m.

Fact Howler 2: Dave King did not “strike a deal with the South African Revenue Service (SARS) to settle a long-running £227million tax dispute”. He was convicted by the South Africa Prosecuting Authority after pleading guilty to 41 contraventions of section 75 of the South Africa Income Tax Act 58 of 1962 and was sentenced according to his plea agreement.

Entire Daily Record article:

A QUESTION mark had hung over the former Rangers director’s possible return due to his South African tax conviction but a spokesman for the Stock Exchange says the way is clear for King to take his place at Ibrox.

DAVE King has been given the go-ahead to return to the Rangers boardroom by the London Stock Exchange.

A spokesman for the LSE last night confirmed the businessman would be free to become chairman so long as Ibrox advisers rubber-stamped the move.

It had been thought King’s South African tax conviction and his previous board appointment at Ibrox may have stood in the way of a comeback.

But a spokesman for the LSE, where Rangers shares are listed on the Alternative Investments Market (AIM), appeared to clear the way for King to plough money into the club.

He told Record Sport: “I had a look in the reports and there were these issues in South Africa, the other thing was that he had been on the board previously.

“So the question would be whether these things would stop him taking a stake again.

“I think the answer on both these points is they wouldn’t.

“From the Exchange’s point of view if we are satisfied Rangers’ nominated adviser Daniel Stewart and Company has carried out the correct checks then he would be allowed to make this investment.”

King is believed to have met Paul Shackleton of Daniel Stewart yesterday to discuss returning to Ibrox as chairman.

Earlier this year he struck a deal with the South African Revenue Service (SARS) to settle a long-running £227million tax dispute.

He agreed to pay SARS £44.75m after admitting he owed income tax, and in return the revenue service agreed to drop prosecutions over dozens of criminal fraud charges.

He pled guilty to having contravened tax legislation by failing to provide correct information about earnings.

The payment agreement was reached as an alternative to an 82-year jail term for 41 counts of breaching tax legislation.

During his 10-year legal battle a judge once said of King: “He has no respect for the truth and does not
hesitate to lie … if he thinks it will be to his advantage. He is a mendacious witness whose evidence should not be accepted on any issue unless it is supported by objective evidence.

“In our assessment he is a glib and shameless liar.”

King arrived in South Africa in the 1970s with £10 in his pocket but went on to build up a £200m fortune as a high-powered financial consultant.

He also had a seaside holiday home, a £165,000 Ferrari, £64,000 Mercedes-Benz and two private jets worth £14m.

King bought up vineyards too and, along with golf legend pal Gary Player, ploughed £1m into a stud farm.

SARS began to ask questions when the tycoon claimed to be earning only £5000 a year.

King’s defence was that nearly everything he had was owned by an offshore company called Ben Nevis.

He flew into Glasgow Airport on Friday to hold meetings with the Rangers board, and was last night thought to have headed to London to continue discussions with the LSE and Daniel Stewart.

Under stock exchange rules, should regulators have any questions about his suitability to be a director, Daniel Stewart and Company would have to signal to AIM that it had carried out due diligence on King before putting him forward as a board member of a publicly listed company.

Meanwhile, Gers boss Ally McCoist said: “I saw Dave briefly at the East Fife game. We exchanged pleasantries and spoke about the match.

“I haven’t had a chance to talk to him in great detail but effectively it’s none of my business.”

King stands his ground to pursue Ibrox dream: Former Gers director close to return

Monday, October 28th, 2013

Fact Howler 1: by Stephen McGowan of the Daily Mail on Dave King:

The Castlemilk-born tycoon had charges of fraud and money laundering lowered by the South African tax authorities in August in return for a plea bargain, which saw him pay £43.7m whilst accepting culpability for 41 charges of breaching the South African Income Tax Act.

Offered the choice of paying £210,000 or an 82-year jail term under section 75 of the act, he opted to pay the cash.

Dave King is a convicted criminal. The South African Tax authorities did not “lower” his charges – he pled guilty to various contraventions of section 75 of the South Africa Income Tax Act 58 of 1962 in order to avoid a lengthy court case, and a prison sentence.

He was fined accordingly, based on the sentencing agreement his legal team reached with the South Africa National Prosecuting Authority.

Fact Howler 2: One cannot be a “South African based businessman”. The correct usage would be “South Africa-based businessman”.

Fact Howler 3: in the headline, King is referred to as “Former Gers director”. He is not a former Rangers director, he was a director of the former Rangers.

Fact Howler 4: Dave King was forced to pay a verified figure of R706.7 (South African Rand), which equates to £44.54m in current money, not £43.7m

See also: The Herald’s Richard Wilson describing Dave King’s criminal conviction as “minor breaches of the Income Tax Act“.

If paying out £44.54m in South Africa’s biggest-ever tax case is minor, I’d hate to see a major case.

Rangers: Dave King yet to contact Scottish FA

Saturday, October 26th, 2013

Scottish Football Association chief executive Stewart Regan on South Africa-based Scottish businessman Dave King’s attempts to join the board at Rangers:

What he has is an understanding of the process, what he hasn’t had is any assurances from myself of any of my board or colleagues about any proposal for him to join the board.

King recently pled guilty to 41 criminal charges of tax evasion and accepted the punishment, plus recovery of £44.54m in unpaid taxes.

One thing is certain: the SFA is facing a watershed moment. The Articles of Association concerning the “fit and proper” status of football club officials are quite clear; if they approve King’s appointment to the Rangers board, it’s all over.

Crisis? What crisis?

Thursday, August 8th, 2013

Former Ibrox director Dave King, currently under investigation by the South African tax authorities:

Speaking to Sportsmail, King said: ‘There is an inevitability to the fact the people currently operating Rangers are going to run out of cash.

Not that the Monkey would trust Dave King to tell us it was Thursday, but this should be ringing alarm bells across Scottish football.

It’s not. There’s nothing to see here. Move along.