GOING GOING GONE

from the Hammersmith Times 23rd June 2004

by Dave McIntyre

The long-running battle for control of QPR has been resolved with the Chris Wright era being spectacularly ended once and for all. Chief executive David Davies, embattled and outnumbered in terms of board support, stood down on Friday with company chairman Ross Jones set to follow.

And the writing is on the wall for Rangers chairman Nick Blackburn, who will arrive back from Portugal to find his two key allies at the exit door and the club effectively under new control.

Blackburn, Davies and QPR Holdings chief Jones, the so-called ‘gang of three’ whose refinancing deal took the club out of administration in 2002, were seen by many as symbolic of Wright’s failed regime.

Blackburn was Wright’s vice-chairman and later his representative on the board after £10million was borrowed to pacify creditors - who included Wright - and secure the club’s immediate future after successive takeover bids stalled.

It left the trio at the helm and Davies, whom supporters credit with turning the club around in recent years, in charge of day-to-day affairs until he reached the end of the line last week after a series of disagreements with fellow directors.

The catalyst for change was the appointment of Gianni Paladini to the board earlier this year.

The Italian bought a 22 per cent stake and immediately formed a strong alliance with Bill Power, a lifelong supporter who joined the board last year after injecting much-needed cash.

Paladini’s relationship with Davies quickly turned sour, leading to a serious bust-up prior to Davies’ departure being confirmed after a board meeting on Friday morning.

The gang of three had survived many a battle in the past, but when a desperate need for cash led them to Paladini in April, their grip was loosened. It was a watershed moment.

Paladini, Power and another supporter on the board to have injected money, Kevin McGrath, became the dominant force in terms of shares owned and, crucially, boardroom votes.

Much of the disagreement behind the scenes in recent months has been over the club’s seemingly endless search for new investors - a search that led Davies down many dead ends and ultimately led to his departure.

He courted Australian David Thorne over a long period of time, all to no avail, and also tried to secure a deal with American Tim Krause.

Thorne made it clear he wanted to retain Blackburn, Davies and Jones and had he bought a stake in the club when Davies was convinced he would, the door would not have been left gaping for Paladini.

And as late as last week, Krause, who also proposed to keep the incumbent regime intact, was suggesting he could find the funds to acquire a major or even majority shareholding. When he failed to deliver, the game was up.

Another factor was an impending Annual General Meeting, which is scheduled to take place next month.

Last time out, Davies, Blackburn and Jones were at odds with Harold Winton, then a director, and were being challenged to accept a bid from aspiring investor Haleem Kherallah, who attended hoping to force the board’s hand.

Buffeted by Wright’s shareholding and the 26 per cent batch of shares they then held, the AGM was a stroll for the gang of three.

Kherallah was dismissed - his offer was seen as derisory in any case - and the power being wielded at the top was later evident again when Winton left the board. Until Friday, he was preparing to face legal action from the club, who claim they are owed money for players’ wages Winton is said to have agreed to fund. That action will now certainly not go ahead.

This year, the AGM was shaping up to be a very different affair.

The pressure on Davies and his own disenchantment seemed to be growing. Blackburn, unpopular with fans due to his association with Wright’s regime and the once-proposed merger with Wimbledon, faced the prospect of having to stand for re-election without a block vote behind him.

With the combined shareholding of Paladini, Power and McGrath totalling over 40 per cent, and Paladini retaining the option of increasing his personal stake from 22 to 51 per cent, the balance of power had shifted and Davies was the first to fall on his sword.

In effect, a new gang of three has emerged.

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