Kevin McCabe (Sheffield United)

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Kevin Charles McCabe is an English property businessman and the plc chairman of Sheffield United Football Club.

Contents

[edit] Business career

A native of Sheffield, Kevin McCabe set up in 1980 a property company called Scarborough Holdings and formed a £50m joint venture between United and Scarborough Holdings to invest in low-risk commercial property. United Scarborough (a £50m property joint-venture with McCabe’s Scarborough property vehicle) sold two properties for a £1.6 million profit, of which £800,000 will swelled the current year profit and loss.[1]

McCabe and his family still own the Scarborough group which has branched out into the Far East and China and which currently has a portfolio of property of over £500m in the UK alone. The group owns Forsyth plc, a serviced office subsidiary which runs the Blades Enterprise Centre and also a 20% stake in both Frasers Property (UK) Ltd and FairBriar Holdings Ltd.

He is the chairman of FairBriar plc, a listed residential development company in both London and the home counties and was chairman of Scamp Holdings Ltd. Scamp Holdings owns 72.3% of Teesland plc. He also sits on the board of certain subsidiary companies of Bank of Scotland.[2]

On 27 June 2007, McCabe made £850 million by selling his entire 60 per cent stake of Scamp Holdings Ltd, a former subsidiary company of his Scarborough group to the Australian company, Valad.[3] As part of the deal McCabe has invested Aus$100m in Valad and has been awarded a place on the boardroom. The remaining 40% of Scamp Holdings Ltd is still owned by Sheffield United plc.

According to the Yorkshire "Rich List", McCabe has amassed a fortune of about £100 million from his worldwide property empire.[4] With the sale of Scamp, this estimate has since been proved to be incorrect.

[edit] Sheffield United

Kevin McCabe has turned Sheffield United into a diversified property and leisure services enterprise which is leveraged around the football club.

In October 2005, McCabe revealed an interest in buying Chinese second division Chengdu Five Bull. He already has property and investments in China, and Sheffield United, which toured China in 2006, has a football academy there.[5]

Sheffield United acquired a 90% controlling stake in Chengdu Five Bull Football Club in January 2006, and changed the name of the club to Chengdu Blades Football Club.[6]

It was confirmed on 6 September 2007, that SDG Caledonia Holdings Ltd. (one of Kevin McCabe's companies) will give a £10 million loan to Sheffield United.[7] The new finance, which has been offered on an unsecured basis, is designed to replace previous bank borrowings and enable the club to continue with plans for the future.[8]

[edit] Carlos Tevez affair

In May 2007, McCabe launched a legal fight against an independent commission's decision not to punish West Ham United with a points deduction after the signing of Carlos Tévez and Javier Mascherano.[9] Sheffield United were relegated from English football Premier League on the final day of season 2006-07. McCabe said that Sheffield United would turn to the European Commission for compensation if an independent arbitration panel failed to over-turn their relegation from the Premiership.[10]

A two-day arbitration tribunal was held on 18 June 2007, to examine the decision by an independent committee set up by the Premier League not to dock West Ham United league points for breaching rules governing the ownership of football players.[11] A statement made by the committee on 17 June explained that "Sheffield United are asking the arbitral panel to determine two matters. The first is whether the decision by the independent disciplinary commission on 27 April to fine West Ham, rather than dock points, was legally flawed such as to require the issue to be determined afresh by a disciplinary commission at some point in the future. The second is whether the Premier League acted unlawfully by not de-registering Tevez. Fulham are seeking similar relief. The arbitral panel have no power to decide what the penalty to be imposed upon West Ham should be. This will be within the exclusive remit of the disciplinary commission, if one is convened as a result of the arbitral panel's decision."[12]

McCabe and Sheffield United subsequently lost their arbitration appeal after the tribunal found in favour of the FA Premier League on both issues and dismissed the claims of Sheffield United. The three-man panel did not have the power to change West Ham's punishment but could have ordered a new independent commission to judge the case. The tribunal said they had "sympathy" with the Blades, while West Ham had been "deliberately deceitful" and yet remained in the Premier League.[13]

As a result of the hearing, McCabe announced that Sheffield United would be "going to the High Court to appeal". McCabe accepted that Sheffield United will not be reinstated to the Premier League, but would be looking for up to £50m in compensation.[14]

On 13 July 2007, Sheffield United lost an High Court appeal against the Premier League. An arbitration panel had upheld the original decision not to dock West Ham points over the transfers of Carlos Tevez and Javier Mascherano. The Blades went into the High Court hearing hoping to prove that the arbitration panel made an "error in law" by not ordering a new disciplinary commission to deal with the affair - but this was rejected by the High Court. McCabe is still looking for compensation, and said he would be looking at "other avenues that I think may be worth pursuing." after the High Court ruling.[15]

Sheffield United initiated legal proceedings against West Ham United on 16 August 2007, for substantial compensation after the club was relegated from the Premier League in season 2006-07. United have estimated the cost of their relegation at between £30million and £50million. The Blades recently failed in their High Court bid to force the Premier League to take disciplinary action against West Ham, and claim West Ham failed to disclose vital information at the hearing. However, West Ham deny Sheffield United's claims.[16]

McCabe confirmed on November 7 2007, that Sheffield United's case for compensation following their relegation from the Premier League will be heard by a Football Association tribunal in mid-2008. Having failed in their attempt to have the original punishment overturned, United will seek monetary recognition and a financial settlement.[17]

[edit] References and notes

  1. ^ Growth Company (accessed 15 June 2007)
  2. ^ Teeslan iOG (accessed 21 June 2007)
  3. ^ Blades boost after £850m McCabe sale (accessed 27 June 2007)
  4. ^ Insider Media Ltd (accessed 15 June 2007)
  5. ^ Political Economy of Football (accessed 15 June 2007)
  6. ^ Sheffield United take over Chengdu football club (accessed 21 June 2007)
  7. ^ Blades bring in funds (accessed 10 September 2007)
  8. ^ Blades' £10 million boost (accessed 8 September 2007)
  9. ^ West Ham handed record £5.5m fine (accessed 18 June 2007)
  10. ^ Blades will take fight to Europe (accessed 18 June 2007)
  11. ^ Premier League v Sheffield Utd (accessed 18 June 2007)
  12. ^ "Blades call on Anfield chief", Yorkshire Post, 18 June 2007. Retrieved 2 July 2007.
  13. ^ "Blades lose appeal on relegation.", BBC Website, 3 July 2007. Retrieved 4 July 2007.
  14. ^ "Blades secure date at High Court.", BBC Website, 5 July 2007. Retrieved 6 July 2007.
  15. ^ "Sheff Utd lose High Court appeal.", BBC Website, 13 July 2007. Retrieved 14 July 2007.
  16. ^ "Blades seek Hammers compensation.", BBC Website, 16 August 2007. Retrieved 17 August 2007.
  17. ^ "Sheff Utd fight for compensation.", BBC Website, 7 November 2007. Retrieved 7 November 2007.