Venables buys right to sue Spurs for unfair dismissal
Sunday 21 August 1994
Mr Venables, ousted as chief executive of Tottenham last year, has done a deal with the liquidator of his former company, Edennote, which will enable him to proceed with his pounds 1m-plus claim against Tottenham for wrongful dismissal.
In May, Tottenham, which claims to be a creditor of Edennote, succeeded in getting it wound up in a High Court action. The only two outstanding creditors areTottenham and Mr Venables.
Tottenham's claim against Edennote stems from the High Court action last summer between the two companies.
The winding-up move threatened to disrupt Mr Venables' claim, because once a company is wound up it is up to the liquidator to decide whether to pursue litigation. Although Mr Venables has a claim against Tottenham on his own behalf, Edennote, which provided Tottenham with management services, also has a claim.
In a so-far unpublicised deal, Mr Venables has bought the rights to Edennote's claim for breach of contract. He is believed to have paid less than pounds 10,000 for the assignment to the liquidators of Edennote, Rothman Plantell. In addition to the cash payment, the liquidator will get 10 per cent of any proceeds from the claim.
The move has outraged Mr Sugar and his solicitors at Herbert Smith who have complained to the liquidator.
Herbert Smith is threatening to go to court to reverse the decision. Mr Sugar's lawyers have told the liquidator it would have paid more for the assignment and should have been given the chance to buy it.
The liquidator said that it had offered Mr Venables the right to buy the claim only after Mr Sugar's lawyers applied to the court for 'security for costs' against Edennote. This would force Edennote to assure the court that it could meet Tottenham's legal costs in the event of a court award to that effect. 'We would not have had to have reached any deal with Mr Venables if Herbert Smith had not taken this action,' said the spokesman.
The dispute with Mr Venables threatens to drain Tottenham of further funds. The club has already been hit by a pounds 1.5m fine from the Football Association as a result of irregular payments to players by the previous management in the 1980s. In addition, Mr Sugar has made a settlement with the Inland Revenue, believed to be about pounds 700,000, in relation to those payments and the club is believed to have written off around pounds 500,000 in loans.
Tottenham's shares, which closed at 107p on Friday, have recently been rising on expectations of higher ticket and merchandise sales and success on the field after the summer signings of German striker Jurgen Klinsmann and Ilie Dmitrescu of Romania.
However, there are some concerns about the health of the balance sheet, the state of which will become evident in the next few weeks when the company announces its year- end results and publishes its annual report and accounts.
- 1 The truth about 'girl things': Three cheers for Heather Watson's honesty
- 2 Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
- 5 Men behaving badly: Urinating while standing, 'manspreading' and the gendering of selfishness
Nigel Farage: NHS might have to be replaced by private health insurance
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
British Muslim school children suffering a backlash of abuse following Paris attacks
George Galloway condemns 'racist, Islamophobic, hypocritical rag' Charlie Hebdo at freedom of speech rally
Islamic history is full of free thinkers - but recent attempts to suppress critical thought are verging on the absurd
iJobs Money & Business
Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...
£16000 - £25000 per annum: Recruitment Genius: This is an exciting opportunity...
£45000 - £47000 per annum + bonus + benefits: Ashdown Group: Java Developer / ...
£35000 - £38000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...