Blackpool in hands of receivers after High Court grants application
Wednesday 13 February 2019 17:12, UK
The High Court has granted an application to allow receivers to take control of Blackpool.
The decision comes after Valeri Belokon submitted an application to appoint receivers in regard to Owen Oyston's asset 'Segesta', which owns Blackpool.
Justice Marcus Smith sided with Belokon, which will allow professional receivers David Rubin & Partners to replace the board and run the club while third-party ownership is sought.
Paul Cooper and David Rubin will act as receivers, and said: "David Rubin & Partners are only too aware of the history of Blackpool Football Club, the central part the club plays in the community and the emotions involved for those supporters dedicated to securing its future.
"This has obviously been an unsettling period in the club's history. But in this time of uncertainty, the Joint Receivers will be doing everything in their power to keep the fans informed of relevant developments."
Belokon, a Latvian businessman, launched the application to collect £25m he is owed by his former business partner Oyston.
In 2017, a judge ordered Oyston to pay Belokon £31m after he was deemed to have been "unfairly prejudiced" over his part-ownership of Blackpool, but he has received just a fraction of the fee.
The judge granted the most recent application after being satisfied the club would be sold as a going concern, and not broken into single assets.
The judge also agreed Blackpool is a saleable and valuable asset, and revenues would increase with Oyston no longer in charge as the fans would end their boycott of his ownership.
However, the judge did not grant an application from Belokon for a receiver to take control of Oyston's non-footballing assets.
Belokon's successful application could have negative consequences for Blackpool on the pitch, though. EFL rules treat an appointment of a receiver as an "insolvency event", in the same way they would a club going into administration, which can result in a point deduction.
The EFL did not comment on a possible punishment for Blackpool, but EFL chief executive Shaun Harvey said: "The EFL notes today's developments in regard to Blackpool Football Club following the hearing in the High Court.
"The matter will now be considered by the EFL Board at the earliest opportunity (6th March - next Board Meeting) and we will be seeking an early meeting with the Receiver, so as to ensure that the best interests of the club can be jointly considered, against the context of our regulatory framework."
