Whelan faces FSA probe
By James Hall, Sunday Telegraph

Last Updated: 2:21am BST 10/06/2007

David Whelan, the founder of JJB Sports, faces a probe by the Financial Services Authority for apparently misleading the market over the sale of his 29 per cent stake in the retail chain on Friday.

The 70-year-old sold his entire holding to Chris Ronnie, the former right-hand man of Mike Ashley, the controversial Sports Direct owner, and Exista, the Icelandic financial group, for £190m. Whelan immediately stepped down from the company's board.

However, in an announcement to the Stock Exchange on January 26, Whelan promised shareholders that he would not sell any shares in the company for "at least 12 months". He also assured them that he "remains committed to the long-term future of JJB Sports".

His about-face has now piqued the interest of the financial watchdog. "We monitor directors as a matter of course," the FSA said last night. It would not comment on the JJB case specifically.

JJB defended Whelan's actions, saying that Whelan's January pledge not to sell any shares followed the sale of an 8.6 per cent stake for personal reasons.

"When he said that in January he genuinely believed it," the company said, adding that the statement was intended to reassure investors that he would not sell his shares piecemeal in the market.

An executive close to JJB said that Whelan, who also owns Wigan Athletic Football Club, had not planned to sell his shares but was approached by Ronnie last week following a poor trading statement from the company, after which shares fell by 11 per cent.

"He doesn't have the best record on corporate governance, does he? He is a bit of a maverick," the executive said.

A rap on the knuckles for Whelan would be ironic. Last month he threatened to sue rival football club West Ham for breaching transfer rules. "There are rules and regulations and every club has to stay within those regulations," Whelan said at the time.

Whelan's decision to sell his stake marks the end of an era for JJB, which he grew from a single sports store in 1971. The company today has 410 stores and a chain of health clubs.

His sale also heralds an intriguing head-on battle between Sports Direct's Ashley and Ronnie, who was appointed JJB's deputy chief executive following Friday's deal.

Until November last year Ronnie was Ashley's trusted lieutenant at Sports Direct and was a key figure in the company's acquisitions and investment strategy team.

At Sports Direct, Ronnie was closely involved in Ashley's stake-building strategies in John David, JJB Sports and Blacks Leisure. Ashley sold his stakes in JD and JJB last year prior to Sports Direct's flotation earlier this year. Since the IPO, Sports Direct's shares have lost a third of their value and Ashley has faced criticism for his unorthodox management style. It is not known whether Ronnie shares the same management style as Ashley.

Tom Knight, chief executive of JJB, said nothing would change: "We have always been in competition with Sports Direct. I don't expect our strategy to change."

Link: http://www.telegraph.co.uk/money/main.jhtm...10/cnfsa110.xml

Blades set for Kabba probe

By Alex Dunn - Created on 17 Jun 2007

Sheffield United could be the subject of an investigation for allegedly breaching the same rule that they want to see West Ham relegated for, according to a newspaper report.

The Yorkshire club believe they have a realistic chance of being reinstated to the Premier League when their case is heard on Monday, at the expense of West Ham, following the irregularities that occurred as a result of the third party ownership issues involved in the transfers of Javier Mascherano and Carlos Tevez.

However, in a further twist, the Premier League have now confirmed that they are to look at Steve Kabba's transfer from Sheffield United to Watford, with the possibility of third party interference being investigated.

Kabba was not allowed to face former club Sheffield United following his switch to Vicarage Road in January and the Premier League are eager to learn why the player was deemed ineligible - as any attempt to block the striker from appearing would contravene existing laws.

"The current rule makes clear that once a move becomes permanent there can be no contractual terms to prevent a player playing against his old club," a Premier League spokesman told the News of the World.

"The statements surrounding the Steve Kabba transfer were brought to our attention late on Friday and early next week we will look at our documentation and ask our two clubs to submit any further documents, or agreements, for scrutiny."

The case mirrors that of Tim Howard, who was prevented from playing against Manchester United, despite the fact a deal had been put in place for the American to move to Goodison Park on a permanent basis.

However, Sheffield United plc chairman Kevin McCabe insists his club have nothing to hide and he firmly believes that this case has no parallels with that which occurred at West Ham.

"Our contract for the transfer of Steve Kabba to Watford was open, was honest, was properly examined by the Premier League and the player was registered," McCabe told Sky Sports News.

"There wouldn't be any condition in our contract when we transferred him to Watford. I'm sure there wasn't a feature in his contract.

"I'm sure that the contract of transferring Steve Kabba from Sheffield United to Watford complied with all the requirements of the Premier League without any shadow of doubt.

"We’re talking about two Argentina internationals (Tevez and Mascherano), one of which has played for West Ham virtually all of the season. I don't think there's any comparison whatsoever."

Link: http://home.skysports.com/list.aspx?hlid=4...or+Kabba+probe#