Massimo Cellino close to Leeds takeover after successful appeal over ban
Guardian 6/4/14
Italian successfully appeals against being barred
But faces ban if Sardinian court says he was dishonest
David Conn
The Football League could clear the Italian businessman Massimo Cellino to take over Leeds United this week after Cellino's successful appeal against being barred, then disqualify him within three months if a Sardinian court says Cellino was dishonest when found guilty of tax evasion. That possibility has been opened up by the judgment of a QC, Tim Kerr, who allowed Cellino's appeal after the League barred the Italian from buying Leeds due to his conviction in Cagliari on 18 March.
Kerr did not consider the facts behind Cellino's conviction at all, but decided the League was wrong to decide the Italian had acted dishonestly, before seeing the written judgment of the Cagliari court. Those written reasons are due by mid-June, within 90 days of the 18 March conviction. This specific offence of tax evasion, Kerr concluded, can involve dishonesty, or in Italian law a person can be convicted of failing to pay the tax without having done so dishonestly.
The League's rules, identical to those of the Premier League, in its "owners and directors test", formerly the "fit and proper person test", bar any person from taking over or being a director of a football club if they have "unspent convictions for offences of dishonesty". The League's rulebook defines that as "any act which would reasonably be considered to be dishonest". The League board decided on 24 March that Cellino's tax evasion could be considered dishonest.
Cellino, who had pleaded not guilty to the charge, was found guilty of illegally evading €388,500 (£321,000) import duty on his yacht, the Nelie, which was ordered by the judge to be confiscated and a €600,000 fine to be paid. Prosecutor, Andrea Massidda had argued Cellino deliberately sought to evade the import duty by setting up a US company, Freetime Miami, to own the boat.
The League, which had observers in court and took advice on Italian law, barred Cellino from the £11m takeover of Leeds (plus £23m to pay off debts), which he has agreed with the club's current owners, Gulf Finance House of Bahrain.
Cellino's lawyers, a QC and junior barrister instructed by solicitors Mishcon de Reya, then appealed, arguing that the decision of the Cagliari court did not in fact amount to a conviction, given the way Italian law works, but Kerr rejected that argument.
On the question of dishonesty, Kerr's judgment ruled that while Cellino had indeed been convicted of the offence, Kerr could not yet be clear that what Cellino did involved dishonesty.
The League said it was "disappointed" with the decision, and when its board meets on Thursday, it must decide if it should allow Cellino's takeover to proceed, even though the written reasons of the Cagliari judge, Dr Sandra Lepore, could by June find he was guilty of dishonesty.
Leeds, who have plummeted in the Championship table and lost 1-0 to Wigan Athletic on Saturday, are in financial disarray. GFH argue Cellino remains bound to fund the club; he has refused unless his appeal is approved.
Italian successfully appeals against being barred
But faces ban if Sardinian court says he was dishonest
David Conn
The Football League could clear the Italian businessman Massimo Cellino to take over Leeds United this week after Cellino's successful appeal against being barred, then disqualify him within three months if a Sardinian court says Cellino was dishonest when found guilty of tax evasion. That possibility has been opened up by the judgment of a QC, Tim Kerr, who allowed Cellino's appeal after the League barred the Italian from buying Leeds due to his conviction in Cagliari on 18 March.
Kerr did not consider the facts behind Cellino's conviction at all, but decided the League was wrong to decide the Italian had acted dishonestly, before seeing the written judgment of the Cagliari court. Those written reasons are due by mid-June, within 90 days of the 18 March conviction. This specific offence of tax evasion, Kerr concluded, can involve dishonesty, or in Italian law a person can be convicted of failing to pay the tax without having done so dishonestly.
The League's rules, identical to those of the Premier League, in its "owners and directors test", formerly the "fit and proper person test", bar any person from taking over or being a director of a football club if they have "unspent convictions for offences of dishonesty". The League's rulebook defines that as "any act which would reasonably be considered to be dishonest". The League board decided on 24 March that Cellino's tax evasion could be considered dishonest.
Cellino, who had pleaded not guilty to the charge, was found guilty of illegally evading €388,500 (£321,000) import duty on his yacht, the Nelie, which was ordered by the judge to be confiscated and a €600,000 fine to be paid. Prosecutor, Andrea Massidda had argued Cellino deliberately sought to evade the import duty by setting up a US company, Freetime Miami, to own the boat.
The League, which had observers in court and took advice on Italian law, barred Cellino from the £11m takeover of Leeds (plus £23m to pay off debts), which he has agreed with the club's current owners, Gulf Finance House of Bahrain.
Cellino's lawyers, a QC and junior barrister instructed by solicitors Mishcon de Reya, then appealed, arguing that the decision of the Cagliari court did not in fact amount to a conviction, given the way Italian law works, but Kerr rejected that argument.
On the question of dishonesty, Kerr's judgment ruled that while Cellino had indeed been convicted of the offence, Kerr could not yet be clear that what Cellino did involved dishonesty.
The League said it was "disappointed" with the decision, and when its board meets on Thursday, it must decide if it should allow Cellino's takeover to proceed, even though the written reasons of the Cagliari judge, Dr Sandra Lepore, could by June find he was guilty of dishonesty.
Leeds, who have plummeted in the Championship table and lost 1-0 to Wigan Athletic on Saturday, are in financial disarray. GFH argue Cellino remains bound to fund the club; he has refused unless his appeal is approved.
