We were to experience what I have always believed was a big "sting."
By Peter Mallinger in his book "So You Think You Want To Be A Director of a Football Club."
A Meeting was hastily arranged for Monday 18 May 1992. We met at 11 a.m. at St James' park in the boardroom. Across the passage in the Directors' Guest Room sat Douglas Hall with his Sheffield-based Peat Marwick solicitor. Sir John was nowhere to be seen. We asked Austin Donohoe of Coopers & Lybrand to be present. There was no sign of our solicitor, Neil Calvert. We learned later that Austin Donohoe had told Neil he wouldn't be required!
It would have been better, in hindsight, if the events that took place that morning had been witnessed by a dozen solicitors. We were to experience what I have always believed was a big a "sting" as that had seen by filmgoers and orchestrated by Robert Redford and Paul Newman.
This time the actors were Freddie Shepherd and the accountant advising us, Austin Donohoe of Coopers Lybrand.
Freddie Shepherd had kept himself more or less in the back ground for almost the whole of the Hall and McKeag vendetta. George and I had met him on several occasions as for a while he had indicated he would not join up with the Halls.
But we were always left with the same feeling we had with Bob Young. They were sitting on the fence and not wishing to show their hands either way until a clear winner emerged. There was no doubt they were talking at length with the Halls but trying their best to keep close to George Forbes and me in an effort to find out how we were thinking.
When we took our seats that day in the boardroom Freddie Shepherd was the one person in the room who no one had expected to see. Freddie had accumulated a number of shares and by then we assumed he was very much on the side of Sir John Hall. His presence was a shock to George, Derek and me. Coopers & Lybrand explained he could not sit in on the meeting just to witness what was going on but would in effect, provided he remained, have to sign an irrevocable undertaking to sell his shares. Much to our surprise he agreed, saying he wanted to sell. We remained uncomfortable with Freddie listening to every word but had little reason to argue with him as he was adamant he was there to sell his shares. If he agreed to sign an irrevocable undertaking he could not go back on his word.
George Forbes took control of the bargaining and there was much trudging back and forth before a deal was agreed. Sir John had offered 20p per share and Austin Donohoe suggested we take that before Sir John had a change of heart. We were shocked at how keen Austin was to recommend the opening deal. George would have none of it and eventually a deal was agreed. We would receive 20p immediately for our shares, a further 20p on 31 December 1993, and a further 10p when the club got into the Premier League. In addition we were to remain as vice-presidents with access to the boardroom on match days (more on that later), four seat in the directors' box area and car park space. Austin Donohoe wrote up the documents and we, including Freddie Shepherd, signed the irrevocable undertakings. The fact that he sold his shares amazed us, but I had little time to think about his as I confess I was shattered by the whole experience. It was final, I was no longer a director of Newcastle United.
Austin Donohoe gathered up the papers to take them back to the office of Coopers & Lybrand. All that was left was for us to walk out of St James' Park for the last time as directors. I can still recall the lump I had in my throat as I walked down the corridor from the boardroom to the stairs. I don't think George and I spoke, we were both immersed in our own thoughts. Derek McVickers had gone in to see Douglas Hall to shake his hand. I could never work out why he would want to do that, unless he knew something that we didn't. That was the worst 192 mile journey I ever made from Newcastle to Leicester. The Evening Chronicle was of course jubilant that the Halls had taken over at last and the following evening gave details of the acquisition Cameron Hall Developments had made the night before George Forbes, Derek McVickers and myself. But where was the mention of the sale of Freddie Shepherd’s shares? He had after all signed an irrevocable undertaking to sell and there were several witnesses who could vouch for the fact. The only mention of Freddie Shepherd in the paper was to say he was supporting Sir John Hall. With what? He had no shares. Or was he claiming otherwise? Only then did the story come out.
Austin Donohoe from Coopers & Lybrand had collected the all-important documents, returned to his Newcastle office and inadvertently shredded Freddie Shepherd's documents. Not ours, mind, just Freddie Shepherd's. The "sting" had been completed, and I suspect much champagne was uncorked in Austin Donohoe's office in Coopers & Lybrand. Of course, they tried to deny it. Freddie had now decided he didn't want to sign another irrevocable undertaking as most of us would have done. No, Austin's allegedly clumsy action had apparently given Freddie time to think otherwise! I immediately wrote to Coopers & Lybrand to ask what was going on. The following is an extract from a letter from coopers & Lybrand on 27 July 1992.
As mentioned on the telephone, and reiterated to Mr Forbes, as far as this firm is concerned it was a complete accident that the irrevocable undertaking signed by Mr Shepherd was destroyed.
Any suggestion that Mr Donohoe did not act solely in the interest of the independent directors is strongly denied.
My firm gave advice to the independent directors of Newcastle United Plc in connection with the offer from Cameron Hall Developments Limited in accordance with the agreed terms set out in our letter of 15 May 1992. I am satisfied that my partners and staff performed their work to the highest standard and with integrity.
I would be most pleased to meet with you and Mr Forbes.
Yours sincerely
Lionel Davies
That of course, is exactly what you would expect him to say. George and I met Lionel Davies of Coopers & Lybrand on Saturday, 15 August at Gosforth Park Hotel prior to the first game of the new season against Southend. Mr Davies stuck to his story, although I had the feeling that face to face he was most uncomfortable repeating the fact that Austin Donohoe had inadvertently shredded Freddie Shepherd's documents. The explanation became even more bizarre when Freddie was reported as saying he had never sold out and had in fact changed his mind. So the figure we saw in the boardroom that day signing the irrevocable undertaking was obviously a mirage. And why would Coopers & Lybrand admit that the documents were shredded by mistake if Freddie had never signed them?
Nufcmismanagement view:
Nothing comes as a surprise when Freddy Shepherd is involved. I wonder what went through the minds of George Forbes and Peter Mallinger when they found out that Shepherd had lost the club while lying ill in a hopital bed? I can only guess that they both had a smile at some stage.