Football deal completed in time for kick-off

Sep 2 2009 by Peter McCusker, The Journal

LAWYERS and accountants put in weeks of pre-season work to ensure a North East professional football club came out of administration before the first game of the n ew campaign.

The deal which sees Teesside care home entrepreneur Raj Singh take over League Two team Darlington was completed the day before the season kicked-off.

Anne McCulloch, partner at Crutes Law Firm, led the legal work for Mr Singh, who had taken a 10% stake in the club in December last year.

She said: “The deal had to be completed quickly to ensure that the club was ready to begin the new League Two season without having any more points deducted. If it hadn’t been completed in time then there was even a possibility the club may not have made it into the new season.”

Mr Singh said: “We are relieved and excited that we have finally got full control of the football club after much hard work behind the scenes for the past couple of months.

“It was crucial to our plans that we did not have any more points deducted therefore certain deadlines had to be met.

“This would not have been possible without Anne McCulloch and all of her colleagues at Crutes who were very professional, efficient and easy to work with during the whole process.”

Ms McCulloch, who is based at the Newcastle office of the North East law firm, added: “We are delighted to have been able to work with Raj and his team to secure the future of Darlington Football Club.

“The club has been in existence for over a hundred years and is a key part of the region’s sporting history. We wish Raj and the club every success going forwards.”

Mr Singh initially acquired a 10% stake in the club’s parent company in December 2008 with former owner Tyneside businessman George Houghton retaining the remaining 90% share.

Following the club’s entry into administration in February 2009, the search for a new owner began.

Mr Singh was clear from the outset that any deal must include an interest in the land in order to fully secure the future of the club and it is understood that the deal reached included that interest.

The agreement between Mr Singh, Mr Houghton and the administrators, Brackenbury Clark, saw Mr Singh acquire the newly formed Darlington Football Club 2009 Ltd together with the business and assets of Darlington FC Ltd.

The process received the co-operation and support of the Football League and the FA whose requirements also had to be satisfied in order for them to agree to the deal.

Andrew Moorby and Allan Kelly of Newcastle accountants Tait Walker advised Mr Singh on the tax, financial and insolvency aspects of the deal.

Alistair Scott-Somers of Newcastle-based law firm Dickinson Dees acted for Mr Houghton. He said: “It was a tricky deal with a number of different parties’ interests needing to be considered and protected, not least the employees and players, and we are all delighted that the club has survived and is now ready to renew its assault on League Two.”