Gadsby says 'Show me the money or let me buy back Rams'
The Rams announced on Friday that Gadsby was leaving his post as a non-executive director.
New owner Andy Appleby, head of American sports marketing firm General Sports and Entertainment, who bought the Rams in January, paid tribute to Gadsby for his “long and proud association” with the Rams.
But in a hard-hitting statement released this morning, Gadsby revealed that the split was anything other than amicable and said he was taking legal advice about the way his directorship was “terminated”.
He also posed questions about GSE’s investment in Derby County and called on the current board to reveal full details of the financial package – or let him buy the club back.
The statement brought an immediate response from the Rams.
A club statement said: “The ownership and management team of Derby County are fully committed and focused to achieving success and finally bringing the stability the club has lacked for decades.
“Petty politics have held this great club back from achieving its potential.
“It is time to focus not on the vanity and egos of individuals but the good of the club as a whole.
“This ultimately is what the supporters want.”
And Don Amott, a member of the board during Gadsby’s time in charge and who joined the former chairman as a non-executive director after the American takeover, said he had full confidence in the current owners and their financial backing.
Gadsby’s statement said that he felt compelled to make public his serious concerns and “to question whether any new money has been invested since the takeover by General Sports & Entertainment.”
He claimed that he had been thwarted in attempts to gain confirmation of the £50m investment that was pledged by GS&E.
“Following my appointment as a non-executive director at the time of the club’s takeover by GS&E in January this year, I repeatedly sought confirmation that public pledges of an investment of £50m – £18m to purchase shares, £22m to clear debts and £10m for new signings – were being honoured,” he said.
“Right up to the moment I discovered that my position had been terminated, no answers were forthcoming.
“Nor was there a single official board meeting at which these crucial matters could be raised, an astounding state of affairs for any company, let alone one facing up to serious challenges in a difficult business climate.”
Gadsby’s statement outlined a number of specific concerns.
He said: “On several occasions after the takeover, Adam Pearson [Rams’ chairman of football]maintained publicly that the club would go forward “free of debt” as the result of the investment of “substantial new monies” and it was announced that a takeover worth £50m included £10m for new signings.
“From the outset, I expressed my unhappiness that such were being made without corroboration and was told that corrected figures would be forthcoming later, when all possible sources of new investment had been explored.”
Rams president and chief executive Tom Glick said, as a policy, the club had chosen not to comment on the acquisition price.
He added: “But that number is not far off a combination of the price we paid to the former directors, the substantial debt we inherited which we have reduced and have a timetable to service going forward as well as investing in the playing side.”
Gadsby claimed there was a delay and uncertainty as to the manner in which GS&E would meet the remaining part of their finance and contractual obligation to former directors, due to be put in place by last Friday.
But Glick replied: “This is bizarre and inaccurate.
“Neither was there a delay nor uncertainty and all our contractual obligations to former directors have been settled completely.”
On the Rams’ trading in the transfer market, Gadsby said: “There has not been a substantial investment in this area from the board.”
Derby have made 11 signings for the new Championship season.
But they have sold strikers Robert Earnshaw and Kenny Miller, as well as midfielders David Jones and Craig Fagan.
“The manager’s transfer budget is substantial and we have been one of the most active clubs in the transfer market this summer,” said Glick.
“It is the manager’s fund to manage and I’m sure he will be happy to talk more about this.”
Gadsby has also talked about management costs of the American executives in the current administration, saying it is his understanding the figure is around £1.5m per year.
“I am befuddled by this statement,” said Glick.
“If he is talking about Andy Appleby, Tim Hinchey and myself, this is incredibly inaccurate. As a policy, we do not reveal salaries of members of staff but the figure is significantly below the one given by Peter.”
On the subject of the club’s investors, Gadsby said: “The identity of the investors who backed the takeover has never been made public so once again, as during the “Three Amigos” regime, supporters do not know who owns the club.”
Glick said: “We have been consistent on this all along.
“Most of the investors did not want to have a public role and they are relaxed about that. There is nothing sinister about this.
“Going forward, it is likely to change and some of the investors could lend their expertise to the club and will become part of the board. We are not looking to hide anybody.”
Continuing on the subject of the finances, Gadsby said: “Supporters will have to wait for the publication of the club’s annual accounts to discover what new money has been forthcoming, above and beyond the cost of the purchase of shares.
“I believe the fans of the club, whose support was humbling last season and who continue to provide substantial revenues for the club, deserve greater access to financial information.”
In response, Glick said: “Peter Gadsby’s role as non-executive director was an honorary position, not a day-to-day management position.
“He has not been presented with a set of books and that is an important point.
“He may be personally frustrated.
“Don Amott is a non-executive director and is very pleased with how everything is going and his relationship with the club.”
Gadsby said he repeatedly sought financial information and dates of any board meeting from the finance director, Martin Ridgway.
“He has recently left the company with no formal announcement. I was never given any notification of his departure nor any explanation of the circumstances,” said Gadsby.
But Glick said: “This is not a secret and I’m sure Martin would be happy to talk about it.
“He left to pursue a commercial opportunity and remains a good friend.
“We have a new vice-president of finance in Mal Brannigan. Again, there was nothing sinister about this.”
Gadsby says he accepts his share of responsibility for what he describes as a “deeply worrying” situation .
“I, along with Adam Pearson and the other directors and shareholders, took on trust the pledges of investment from the American consortium,” he said.
“We believed that their takeover would provide the financial muscle needed to enable the club to return to the Premiership and establish themselves at this level.
“I sincerely hope that, in making my doubts about an unhappy situation public, I may help to exert pressure on the owners to produce a full and precisely detailed account of the terms of their takeover, of the amount of new monies invested, the current financial position and the identity of the investors, as well as future financial intentions.
“Such is my disappointment and sense of frustration about the situation that I now contend that the current owners should either make good their financial commitments to Derby County and provide the supporters with proof that their initial promises have been honoured or give me the opportunity to buy the club back and return it to local ownership more atuned to the needs and expectations of its outstandingly loyal supporters.”
But the Rams club statement continued: “Supporters should be in no doubt that the current financial position of Derby County is secure and growing. Significant investment has been made and significant investment will follow in the future.
“It is becoming tiresome to continually refute unfounded allegations, which serve only to create a sense of instability at a time when important work is taking place to improve Derby County and create a stable and prosperous future.”
Amott also issued a statement last night.
“I am happy with my current role as a non-executive director. Whatever questions I have are answered swiftly and completely. I have found the current ownership to be extremely open,” he said.
“As a lifelong supporter, who cares passionately for Derby County and sport in general in this City, I would not put my name and reputation to the ownership group unless I knew they had the best interests of the club at heart and the expertise and financial backing to take the club forward and fulfill the potential we all know it has.”
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