David Conn: Chequered business career of Geller's partner at Exeter

Grecians' co-chairman takes charge of Devon club after spells at Scarborough, Frickley Athletic and Halifax Town

Exeter City narrowly reached the FA Cup second round with a late 2-1 win over non-League Forest Green Rovers in Tuesday's replay. The fixture provided Football Focus with another opportunity for an almost supernaturally embarrassing interview with the Devon club's co-chairman, Uri Geller. The BBC might, though, have found a more intriguing tale by turning its focus from the sometime spoonbender to Exeter's earthier struggles and the club's other co-chairman: John Russell.

Russell was chairman of Scarborough for seven years, taking over the then Football League club in March 1994. They enjoyed some spirited seasons but were relegated to the Conference in 1999, and Russell resigned the following year, with Scarborough in an Insolvency Act voluntary arrangement, owing creditors £1.25m. In March of that year Russell, who listed his occupation as a property developer, pleaded guilty at Leeds Crown Court to two counts of obtaining services by deception in a £180,000 hire-purchase fraud, which did not involve a football club, and received a 15-month prison sentence, suspended for two years.

He has since been involved commercially at non-League Frickley Athletic and Halifax Town. Although Exeter name Geller as co-chairman, Russell actually took over six months ago with Mike Lewis, a man with long commercial experience in football, from Newport County in the 1970s, to Tottenham, Reading, then most recently Swansea, where he became managing director. In the summer of 2001, Swansea's London-based owners, Ninth Floor plc, which lost £4.5m through their involvement with the club, sold it to Lewis for £1. He passed on the shares for the same amount to Tony Petty, an English ex-patriate based in Australia. Swansea ended up in a voluntary arrangement with debts of £1.7m.

Quite why Russell and Lewis stepped in at Exeter is unclear, but both say they are football lovers and were separately looking to become involved at a club earlier this year when they met and teamed up. They talked first to debt-laden Lincoln City, which had been taken over by the club's supporters' trust.

"They made it clear they were bringing no money themselves," said Rob Bradley, the trust chairman. "Their plan was to pay creditors on the drip and try to build up the commercial side. If they succeeded, they wanted the right to buy the shares cheap."

Russell confirmed Bradley's account of the proposal which Lincoln rejected. The Third Division club went into administration, from which they have now emerged. Russell would not reveal details of their deal at Third Division Exeter, but said they have a "legally binding contract" that makes them the owners.

Exeter City, formed 98 years ago, have been members of the Football League since 1920 but, according to the club historian Mike Blackstone, they have always struggled to sustain professional football in the small cathedral city. "Right back to the 1930s the club appealed to supporters for money to play players through the summer," he said.

Their extraordinary contribution to football history remains the 1914 tour of South America when Exeter became the first side to play a full Brazil national team; conflicting reports record the match as a 3-3 draw or a 2-0 victory to Brazil. Exeter's more recent record consists of a somewhat less glamorous battle to pay players and avoid dropping out of the League.

Their latest accounts, for 2001, paint a now-familiar horror story of life in the lower divisions: a £461,000 loss, liabilities exceeding assets by £1.5m, no overdraft facility, directors' loans over £800,000, the builders, Mowlem, owed about the same. One former director, Gerald Vallance, died and his executors agreed to waive a loan to the club of nearly £130,000. Earlier this year, Ivor Doble, the chairman who owned virtually all the shares, finally headed for the exit.

Russell said he and Lewis are working to "chip away" at the debts, which they have reduced from £2m to £1.7m, and said he has invested his own money in the club. "I'm not exactly [Blackburn Rovers' late chairman] Jack Walker, but I'm not skint either, if you know what I mean."

Companies House records show that Russell is also director of Stop the Ball, which "provides fundraising activity to football clubs". Last year its turnover was £2,680, its expenses twice that figure. The five other non-football companies of which he has been a director are now dissolved.

Russell's conviction in March 1999 came when he admitted obtaining £180,000 of hire-purchase finance for a JCB digger and a Bentley car which did not exist. The judge, Paul Hoffman, said of Russell: "This was a fraud in which you took a full part. I am not convinced you were led into it."

Russell pleaded in mitigation that he had not knowingly been involved, a claim which he reiterated this week. He also pointed out that although the conviction was relatively recent, the fraud itself took place more than a decade ago. "It's over and forgotten with," he said. "I'm honest and I work hard and I'm getting on with it."

The Uri Geller connection springs from his son, Daniel. The 21-year-old is an Exeter fan and Geller knew Lewis when he was at Reading, where the Gellers live. Daniel has been referred to as "co-vice chairman" with Lewis, and Uri recruited the American singer Michael Jackson as "honorary director". Neither Daniel nor Uri – or Jackson for that matter – are registered as directors at Companies House. Uri Geller has invested no money in the club and owns no shares, but the association has been fruitful. "Would the BBC have chosen our Cup tie with Forest Green as a live match?" Geller asked. Live coverage is worth £100,000.

There are, though, less happy stories seeping out at Exeter. In June, Geller, Jackson and the magician David Blaine performed at an "extravaganza" at St James's Park to raise money for the club and two charities, Children with Aids and Support for Africa. Last week the Exeter Express and Echo reported that neither charity had received any funds. The city council had granted a charity licence, waiving its usual £4,000 fee, and wrote to the club to confirm that charities had indeed benefited. But it received no reply. "This was very unusual," a council spokesman said. "We were only asking them to confirm it was a charity event."

Then the club announced it had paid the charities £12,000 as promised. Lewis and Russell stated that cheques were "drawn up in September" but there had been a dispute with one supplier, which delayed them being sent out. "It was a mix-up," Geller said, "but the charities have been paid and are very happy."

Others are not. Exeter have seven County Court judgments against them, totalling over £15,000. Nearly £4,000 is owed to Queensway Publishing, which printed the programme for the "extravaganza", 5,000 copies at £5 each. "We were approached by John Russell, who said Uri Geller was his co-chairman," said Queensway's managing director, Lee Harding. "With Geller's name and Michael Jackson appearing, we thought we'd get paid but haven't had a penny. We have instructed bailiffs."

Some fans, including the supporters' trust, have become concerned and a fortnight ago Russell and Lewis were called in to discuss the club's situation with the Football League. Five administrative staff have been made redundant. One of them, Emma Naden, last month won a claim for unfair dismissal which the club did not contest. Since the summer, Russell's wife Gillian and Karen Lewis, Mike's daughter, have joined the club's administrative staff. Russell said he was working full time at the club but taking no salary; Lewis, on £100,000 at Swansea, said he was "drawing legitimate expenses". "I can't afford to work for nothing because I didn't get a pay off from Swansea," he said. "I'm drawing enough to keep alive and be able to feed myself."

Lewis said they are trying their hardest to keep Exeter alive, too. "Our ability is to turn clubs round," he said. "We haven't always been successful, but we're doing our best in very difficult circumstances and trying to pay all creditors. We need the right people around, which is why we have changed staff.

"If anybody out there thinks they can do better, they're welcome to come down with a cheque book."

Uri Geller says he has little to do with the day-to-day running of the club. "I trust John and Mike and they are working very hard. I don't have any concerns at the moment about how the club is being run."

davidconn@independent.co.uk