Exclusive:EFL to receive background on 'unserved' James Bord legal case - Sheffield Wednesday takeover process continues
The EFL are to receive background on a legal complaint involving James Bord, The Star has learned, with further information having been sought as the Sheffield Wednesday takeover process continues.
The London-born, Las Vegas-based former poker player is heading up a consortium poised to buy the Owls out of an administration process, subject to an ongoing EFL vetting process alongside associates Felix Roemer and Alsharif Faisal Bin Jamil. The bid team is continuing to find the club’s losses in the interim and has gone about providing information to authorities as part of that process, which as things stand is expected to continue for a number of weeks.
It’s understood all payments are up to date, with the latest received last week. As reported by the Daily Mail, it’s understood that a further tranche of documents and further information was sent to authorities this week following a wave of discussions - and that time will need to be taken to better understand the information requested. It is possible further requests for information will be made as forensic due diligence continues to ensure Wednesday are moved into eligible hands.
Given the fact there are multiple directors to investigate, that they live abroad and that much of the funding is understood to be based in less traditional industries, the situation furthers The Star’s understanding that the process is set to take a number of weeks to reach any conclusion. Suggestions of the bid being on the brink of collapse have been rejected by multiple sources with knowledge of proceedings.
Nevada lawsuit yet to be served
It was revealed by The Times earlier this week that Bord is the subject of a US civil lawsuit by his former friend and business associate, Canadian poker player Jonathan Cohen. The report states the suit centres on an investment that Cohen made in Spanish club Córdoba, who are part-owned by Bord.
The Star has obtained the relevant documents, with the filing of the case with a Nevada court a matter of public record.
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For reasons unknown Bord has not yet been served his legal papers at the time of publication. Guidance obtained for The Star from an impartial US legal expert suggests this means the case is essentially inactive until the court receives proof of service to Bord from Cohen’s legal representatives and that from the point of filing he has 120 days in which to do so. The files suggest Cohen has instructed three attorneys.
At the stage Bord is served he will have 30 days to respond - if indeed the process makes it that to that stage. Cohen’s allegations are already reported and a full view of the suit will not be possible until Bord is served and the matter proceeds. It would not be unusual for a dispute of this nature to be settled one way or another out of court.
Will the suit impact the takeover?
To what extent - if any at all - the case serves to impact the Bord bid’s continued attempts to pass vetting processes and take on ownership of Sheffield Wednesday remains to be seen. One source said they believe the suit is a ‘complete sideshow’ with regard the bid’s takeover bid and that the bid’s fate would more likely rest in the more traditional streams of due diligence.
As previously reported, while the EFL handbook does refer to the possibility of takeover rejection in the case of ‘unsatisfied judgment or court order for payment of any monetary amount’, it’s understood that the EFL’s Owners and Directors Test (ODT) is unlikely to disqualify a prospective owner on the basis of a civil suit, particularly one based abroad.
Should the administration process extend into May, the responsibility of ratifying any new club owners is handed over to the Independent Football Regulator (IFR) and its Owners, Directors and Senior Executives (ODSE) Test.
The IFR have previously stressed there is no ‘shadow process’ being run alongside the ODT, making clear their involvement at current extends only to ‘seeking clarity from and keeping an open dialogue with the parties involved now because we don't want to unnecessarily delay transactions which are already in train, potentially causing further distress to clubs and fans.’ To that end, they are in contact with the EFL and Wednesday’s administrators at Begbies Traynor.
Approached by The Star with regard to Bord’s legal case and any impact it could stand to have should the process enter their jurisdiction, the IFR advised that they wouldn’t speculate on hypotheticals. Published guidance on the parameters of the ODSE Test makes no reference to any impact of civil lawsuits - though there is more of a basing on the suitability of an ownership candidate on ‘honesty and integrity’ than the EFL test.
EFL to receive background on lawsuit
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Bord and Cohen clearly share what has become a complicated relationship and the situation is believed to be complex. The Star is told that the EFL are set to receive correspondence on the case from Bord’s legal team in an attempt to provide further clarity on the matter.
A spokesperson said: "The Consortium continues to engage with the authorities in a helpful and transparent manner. In light of litigation in the US, a note on the background of the case is being prepared for the EFL by James’s US attorneys. This is a deeply upsetting case for James who has supported Jonathan personally and financially in recent years. No further comment will be made on this case."