Leeds Utd 'held to ransom' by businessman - claim as Ken Bates sued for
libel
Published Date: 11 June 2009
By Chris Bond
A BUSINESSMAN who is suing Ken Bates tried to "hold Leeds United to
ransom" and destabilise the club, the High Court in London was told
yesterday.
Melvyn Levi, 65, is suing Ken Bates, 77, for libel damages over three
articles written by the chairman in Leeds United's match-day programmes
during 2006 and the following year, as well as the content of a letter
sent to fans in 2007.
The articles variously accused Mr Levi of being a shyster, an "enemy
within", attempting to blackmail the club and scaring off potential
investors.
The dispute arose after Mr Bates took over the club from the Yorkshire
Consortium Trust, of which Mr Levi was a member, in 2005.
Mr Bates, who denies libel and is due on the witness stand today, says
that Mr Levi blocked the sale of the remaining shares in the club in
2005 without reason.
Mr Levi says he was acting for a company he was involved with called
Cope Industrial Holdings and that there was a "genuine" legal dispute
over whether or not a "call option" on the shares had lapsed.
Yesterday, Mr Bates's in-house lawyer, Richard Taylor, told Judge Sir
Charles Gray that Mr Levi's stance in September 2005, when he argued
that the "call option" was unenforceable, was "appalling".
Describing the completion of the "call option", due to be done by the
end of May 2005, as "simply a formality", Mr Taylor said that any
attempt to gain a commercial advantage from it was "entirely contrary to
the spirit of what was agreed with the Yorkshire Consortium." He said
that, in January 2005, the "real" commercial deal had been done which
had saved the club.
Mr Taylor insisted that had the "call option" not been effectively
agreed at that time, Leeds United could have gone under and, at best,
would have entered administration.
He said that on September 6, 2005, he had a conversation with Mr Levi
and, as a result of it, believed he was "extremely close to reaching a
settlement".
But just a few days later he spoke to Mr Levi's business partner, Robert
Weston.
Mr Taylor said that he was given the impression during a "thoroughly
unpleasant" telephone call that Mr Weston was acting with the authority
of Mr Levi, although that has been denied.
"It was clear to me that Mr Weston was seeking to blackmail the club
into making these concessions to him and Mr Levi," said Mr Taylor. "They
believed they had the club over a barrel."
The lawyer added that Mr Weston and Mr Levi's behaviour was made "all
the worse" by the fact Mr Bates had given the Consortium £2m in January
2005 as a "reward" for keeping the club going.
"In spite of this the club was now being held to ransom," he said.
The club's chief executive, Shaun Harvey, gave evidence, and said that
he believed Mr Levi had destabilised the club by criticising Mr Bates at
a number of Leeds United games.
"His protests were an embarrassment to everybody at the football club,"
said Mr Harvey of Mr Levi's behaviour at an away game against Watford in
April 2005.
In August 2005, at a friendly against Harrogate, Kevin Blackwell, who
was then Leeds United manager, alleged that Mr Levi had criticised Mr
Bates and told him that he was going to take over the club again.
As a result, Mr Levi was banned from Elland Road and has not attended a
match since.
Barrister Simon Myerson QC, for Mr Levi, claimed that Mr Levi was
entitled to tickets for Leeds games, and as a result of Mr Harvey
"conniving" with Mr Bates, the club had breached its contractual
obligations.
Mr Harvey denied that he had "connived" with Mr Bates.
The hearing continues.
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