Oh dear what a day…
Members of both boards were convened today.
Philip Tudor Nash is gone, but he left some prophetic words in the room.
He challenged the wisdom of inviting in Mike Ashley to the party and he said that if some of the people around the table thought they were bringing in a “saviour” then they were very much mistaken.
He then indulged in graphic metaphors like “inviting the wolf into the sheep pen”.
However, credit where it is due Nash stated that Mike Ashley and his people would not shirk from taking the hard decisions that needed to be taken at RIFC.
He reminded both boards that tough choices were avoided in January/February when he and Graham Wallace were advocating a pre-planned Administration.
Nash reminded the board that Deloitte will not sign off on the accounts until they can see a ‘road map’ out of the current shit storm.
He stated the choices to the board which were to either accept Ashley’s money with all the onerous conditions or file for insolvency.
The latter was his preferred choice.
Nash warned the board that the fans would abandon the club if the new regime was put in place.
It will come as no surprise to you dear reader that the financial assistance being offered by the Sheriff of Newcastle comes with major strings attached.
Moreover Ashley is asking for the badges and image rights as part of the deal and these are not in RIFC’s gift.
The boards then revisited the King shambles.
It came down to the fact that the South African based entrepreneur couldn’t or wouldn’t disclose the details of the rest of his consortium
Subsequently the RIFC board could not be sure if there was indeed £16 million on the table.
Mr King made reference in his statement yesterday to his failure to get a meeting with Mike Ashley.
The board heard that the first time that Mike Ashley was contacted was the same afternoon that Mr King contacted Alexander Easdale.
One interesting point about the meeting today was that the overseas chap who represents the interests of of Blue Pitch Holdings and Margarita Holdings was dialled into the proceedings.
He seemed particularly interested in the Ashley proposals.
If Mr Ashley is successful then the board will comprised of his representatives and the Easdale family with one director for the Institutional Investors and one for Laxey partners.
As to the latter they are, I believe, going into conclave this evening.
However one insider stated to me that they were ‘shell-shocked’ by developments.
In that sense the Hedge fund chaps are in the same place as The People.