FA probe into Hull transfer allegation

The secretary of Hull City, a close associate of the club's largest shareholder Stephen Hinchliffe, who was jailed a fortnight ago for bribery and corruption offences, was involved with Hinchliffe in apparently irregular transfer dealings in May 1999, according to documents obtained by the Independent.

The secretary of Hull City, a close associate of the club's largest shareholder Stephen Hinchliffe, who was jailed a fortnight ago for bribery and corruption offences, was involved with Hinchliffe in apparently irregular transfer dealings in May 1999, according to documents obtained by the Independent.

In a letter signed by Richard Ibbotson, who has been retained as a director by Hull's administrators, Hull offered to pay £40,000 direct to the chairman of Winsford United, while offering to give the non-League club itself £10,000 to "forego" its 25 per cent sell-on clause on the Hull goalkeeper, Andy Oakes. Winsford's chairman, Terry Savage, did not accept the deal. Shortly afterwards, Hull sold Oakes to Derby County for £470,000, and Hull were required to pay nearly £120,000 to Winsford.

These dealings were part of the lengthy investigation into Hull City conducted by the Football Association's compliance officer, Graham Bean, and are now understood to be being investigated by Humberside Police's fraud squad. Ibbotson confirmed this week that he had made statements to "a Mr Bean", but said he had not been been interviewed by the police.

Ibbotson was reluctant to comment in the light of on-going investigations, but he agreed that he "may well" have signed the offers to Savage, but said he did not negotiate the proposals. Savage confirmed he had not dealt personally with Ibbotson, and said he had negotiated almost wholly with Hinchliffe. At the time, Hinchliffe was disqualified from acting as a director of any company, an order obtained by the Department of Trade and Industry following the £3m collapse in 1994 of En-tout-cas, one of Hinchliffe's companies. Breaching such a disqualification order is a criminal offence punishable by up to two years' imprisonment. Anybody who condones the offence, by allowing a disqualified person to act as a director, can be guilty of aiding and abetting.

Hull's former chairman, Nick Buchanan, who took over the club with Hinchliffe on 2 November 1998, has confirmed that Hinchliffe continued to "advise" and attended board meetings, but said his role stopped short of acting as a director. However, Tom Belton, also a former chairman, wrote to Hinchliffe, Buchanan, Ibbotson and two other directors in May 1999 saying that Hinchliffe had become involved in the "day to day running of the company", entered into "financial commitments on behalf of the football club", and negotiated new contracts for the then manager, Warren Joyce, and his assistant, John McGovern. Belton believed this crossed the line. Belton was removed as chairman by Hinchliffe and Buchanan shortly afterwards.

Joyce signed Oakes, a promising young goalkeeper, from the UniBond League side Winsford, who were in administration, for £12,000 in 1998. Winsford were to receive 25 per cent of any subsequent sale price.

On 20 May 1999, Ibbotson signed two faxes addressed to Savage at Winsford's Barton Stadium. The first said: "Should the sale of Andy Oakes take place then Winsford United will forego their contractual agreement to receive 25 per cent on the sell on basis in exchange for a one off £10,000 payment by Hull City." The second said: "As requested should the sale of Andrew Oakes proceed to completion, Hull City will pay the sum of £40,000 to you personally." Savage was asked to sign and return them to confirm his agreement, which he did not do. According to Savage, Hinchliffe had begun months before to try to buy out the sell-on clause, at first offering £5,000 to 6,000.

Savage said Hinchliffe told him that Wigan Athletic were interested in Oakes, but were only offering Hull players, not cash, in exchange. Savage found out about the Derby sale only when he read it on Teletext. According to Savage, he said during the negotiations that 60 per cent of all Winsford's income had to be paid to the administrators. He later received the faxed letters offering to pay £40,000 to him personally and £10,000 directly to the club. He did not accept that offer and said he thought no more of it until the police came to see him last year.

"I was worried about the words 'as requested'," Savage said. "I didn't request it and certainly we didn't agree to it. We kept the clause and are due the full 25 per cent - the final payment is due this week if Andy makes his fifth first-team appearance for Derby." Ibbotson said this week that he had "done nothing wrong" and had "nothing to fear" from a police inquiry.

"I may well have signed the faxes," he said, "but I never spoke to Mr Savage. I didn't negotiate the agreements and I can't remember what the agreements were." Ibbotson said his association with Hinchliffe went back about 20 years; he used to play five-a-side football with him. A solicitor, Ibbotson's firm Ashington Denton, did some of Hinchliffe's legal work. In May 1998, Ibbotson was acquitted of fraudulent trading and two charges of conspiracy to defraud following an investigation relating to the takeover of Sheffield United by a friend of his, Paul Woolhouse, in 1990. Hinchliffe was a director at Sheffield United with Woolhouse from August 1992 to September 1993, and a director again in 1996.

When Hinchliffe and Buchanan bought Hull City from David Lloyd, on 2 November 1998 - for £100,000, which was paid by another participant, a businessman David Bennett - Hinchliffe offered Ibbotson the job of secretary. Two days later, Hinchliffe was served with his disqualification order. Ibbotson agreed to act as a director of several of his companies. Official Companies House records show clearly he became a director of at least seven, but Ibbotson said it was "12 to 15". He resigned from the companies in two stages, mostly in July last year.

One of the companies was D'Elegance Travel, a company paid £82,250 from Hull on April Fool's Day 1999, for a 12-year-old bus - a transaction also understood to be under investigation by the Fraud Squad. Ibbotson would not comment in detail on this, or his working relationship with Hinchliffe. "I wasn't in day-to-day contact with him, but would have seen him at various times." He said he was "satisfied" that, as at Hull, Hinchliffe's role in the other companies stopped short of acting as a director, although Hinchliffe owned them and appointed other directors. Last week Buchanan described the bus purchase as "a brilliant deal" for Hull, and said he "had to beg Steve" to sell the bus to the club.

Hull's administrators are to disclose at a creditors' meeting next Thursday the identity of the bidder who has agreed to buy the club, following its estimated £1.8m collapse three weeks ago. The anonymous bidder has agreed to pay £85,000 to fund the club for a fortnight and pay £248,000 to the Inland Revenue and Customs and Excise, who are owed over £800,000. Ordinary creditors, a long sorry list from John McGovern (owed £30,000), to the St John Ambulance Association (£400) will get nothing.

Supporters have rallied round, demonstrating their commitment, and 1,600 have joined the Tigers Co-Op, a Trust-style group whose members complain they have not been given enough time to play a meaningful role in the club's future. Hull fans fear the club falling into the hands of property developers, and are gazing enviously down the road to Lincoln, whose Supporters Trust last week completed an ambitious "community takeover".

Rob Bradley, a fan installed as Lincoln's chairman, said he sympathised, and supporter ownership was the way forward: "We're going to be hard-nosed and businesslike. But it means the club is owned by supporters, who will love it, not by businessmen in it for the ego or to make money."

davidconn@freeuk.com