Barnsley FC board divided over monies owed following sale of club

THE Cryne family insist that they have been forced into taking legal action against the majority shareholders of Barnsley Football Club for payment of £2.75m as ‘a last resort’, after failing to receive monies owed following the sale of the club in December 2017.
A general view of Oakwell Stadium, home of Barnsley FC. (Picture: PA)A general view of Oakwell Stadium, home of Barnsley FC. (Picture: PA)
A general view of Oakwell Stadium, home of Barnsley FC. (Picture: PA)

The Cryne family have issued a response via their solicitors Knights plc to a statement released on the club’s website on Tuesday afternoon and have stressed that they have been forced into taking the action against Hong-Kong based BFC Investment Company, who own 80 per cent of the club.

They state that the decision has been taken with ‘huge reluctance and great regret’ to recover deferred payments owed.

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The statement also dismissed suggestions on the Reds website that the Cryne family were refusing to sell 50 per cent of Oakwell after the club’s majority shareholders – including co-chairmen Paul Conway and Chien Lee – obtained an option as part of BFC Investment Company’s takeover.

It claimed that a third party had sought to enforce their own option to purchase half of Oakwell.

The Cryne family claim that the situation regarding Oakwell is a totally separate issue to the outstanding monies owed following the club’s sale.

A statement read: “It was agreed at the time (of sale – December 2017) that some of the purchase price could be deferred and paid in instalments.

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“In April 2019, Hong Kong company BFC Investment Company asked the Cryne family for a reduction in the price and for longer to pay the deferred element. The Cryne family agreed to reduce the price substantially, and to grant longer payment terms.

“Payments due in early 2020 were still not paid and despite further time being allowed, £2,750,000 is still owed to Oakwell (Oakwell Holdings Limited, the family’s company). The failure to pay occurred before the current Covid-19 crisis.

“Despite requesting payment from the Hong Kong company several times, payment has still not been forthcoming and with huge reluctance and great regret, Oakwell has been forced to issue a claim in the High Court to recover those monies due.

“It is hoped that the matter can be resolved before the claim progresses much further but the Hong Kong company are yet to submit any defence to the claim.

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“The Cryne family has remained stalwart in their support for the club. Throughout the Covid-19 crisis, the Cryne family has not taken any rent from the club and James Cryne, who is employed by the club, has forgone his salary. Their commitment to the club remains absolute but they feel they have no choice but to take steps in circumstances where they have not been paid in accordance with the contract of sale.

“It is with great regret that as a last resort, the family has instructed Knights to take court action on its behalf.”

In their own statement on the club’s website, the club’s majority shareholders pledged to ‘vigorously defend’ themselves.

It read: “The club will vigorously defend the claims, and its legitimate interests in respect of the (Oakwell) option and intend to aggressively prosecute the club’s own claims by whatever means necessary and in the strongest possible terms.  

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“The club has had a hard battle on and off the field in the last six months. 

“It has fought through Covid-19, governance issues in the EFL and tough opponents on the field to remain in the Championship.

“The club will continue to fight these battles in the interests of its supporters and its long-term future by all means necessary. Since investing in the club in 2017, the new investors have not withdrawn £1 from the club and received no compensation as Board members.

“The club want to reassure our supporters that we will fight this litigation and continue to grow the club in a proper way.”

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