Ex Shelton Seagull
New member
I hope these articles (purloined from the excellent Darlo Uncovered website) will provide a little insight into George Reynolds. Just in case anyone felt like feeling sorry for him.
Former Chairman and 97% shareholder of Darlington Football Club, George Reynolds, has spent another day in court to try and explain his business dealings with his former company George Reynolds UK.
The whole case has brought out some interesting facts which Darlington fans should know. It seems that alot of money has been transferred from GRUK to Darlington Football Club and not from George Reynolds himself.
A loan of between £4m and £6m from GRUK to Darlington Football Club was written off by GRUK in April 2001. Reynolds said he nothing to do with writing it off.
Reynolds admitted that he treated money in the accounts of GRUK as his own and used the funds as his own personal bank account. Even the vehicles he drove, a Rolls Royce, Range Rover and Mercedes, are all part of the liquidated GRUK company.
In the accounts it showed that a loan of £6,822,650 was given to the football club from GRUK but then written off. This was all in the football club accounts that were available publicly and mentioned many times on Uncovered's messageboard, much to the annoyance of Mr Reynolds. When asked why the loan was written off he answered "I don't know."
He was then asked why he signed the paper to agree to the write of, "I just sign paper" replied Reynolds.
Shares in Darlington Football Club bought by GRUK for hundreds of thousands of pounds were later transferred to Mr Reynolds, apparently for £1. Once again Reynolds denied the figure, saying he would consult his chequebook stubs.
The take over of Darlington Football Club also throws up some strange figures. Initially it was claimed the football club was bought for £200k, but when it was shown in the following years accounts the figure was shown as £666,066. "Where did that figure come from?" asked the barrister. "You better ask my accountant" replied Reynolds.
George was then quizzed on just how much of his OWN money was put into the new stadium. Reynolds stated that he was allowed to take money from GRUK as it was his money that started the business up years ago. "That money was the company's. The fact that you could have taken it out by some lawful mechanism isn't the issue, that lawful mechanism was never invoked. The money was lawfully the company's." the barrister told Reynolds.
The Reynolds told how if he did things legally he would have had to pay 50% tax, so he did it the wrong way instead.
Reynolds was asked why he bought the shares of Darlington Football Club for £1 from GRUK when they had paid £666k for them months earlier. "You can buy shares for that, they can be worth two pence the next day. I am not into stocks and shares, I am oblivious to shares to be honest."
was GR's answer.
A few other strange financial dealings were discussed but they didn't involve the football club. But another loan of £0.9m was given to the club after the £6m loan was written off. Once again GRUK, which went bust with debts of millions, were the kind donators.
It was revealed how Reynolds cash flow had dried up and work on the stadium was struggling to carry on. Strange that as when I visited the stadium at this exact time, due to concerns about a slow down in construction, I was advised by GR that there was no such problems and then told about how he issued a writ on ICI. It was at this time he talked about erecting the messageboard at the ground.
The car park at the stadium only got laid after Reynolds did a deal with Hall Construction to carry out the work in exchange for his engineering yard at Coundon because he had no money left to do it.
The case has now been adjourned and will return at a future date. After the hearing Reynolds said that he was 'delighted' to be given the opportunity to explain himself.
On a final note, in the last set of accounts it has stated that Reynolds 'Director's Account stood at £5.6m. Reynolds now claims he is owed £14m. As yet there has been a lack of evidence on either claim.
So the question must be asked. Just how much of Reynolds' OWN money was put into the club?
Former Chairman and 97% shareholder of Darlington Football Club, George Reynolds, has spent another day in court to try and explain his business dealings with his former company George Reynolds UK.
The whole case has brought out some interesting facts which Darlington fans should know. It seems that alot of money has been transferred from GRUK to Darlington Football Club and not from George Reynolds himself.
A loan of between £4m and £6m from GRUK to Darlington Football Club was written off by GRUK in April 2001. Reynolds said he nothing to do with writing it off.
Reynolds admitted that he treated money in the accounts of GRUK as his own and used the funds as his own personal bank account. Even the vehicles he drove, a Rolls Royce, Range Rover and Mercedes, are all part of the liquidated GRUK company.
In the accounts it showed that a loan of £6,822,650 was given to the football club from GRUK but then written off. This was all in the football club accounts that were available publicly and mentioned many times on Uncovered's messageboard, much to the annoyance of Mr Reynolds. When asked why the loan was written off he answered "I don't know."
He was then asked why he signed the paper to agree to the write of, "I just sign paper" replied Reynolds.
Shares in Darlington Football Club bought by GRUK for hundreds of thousands of pounds were later transferred to Mr Reynolds, apparently for £1. Once again Reynolds denied the figure, saying he would consult his chequebook stubs.
The take over of Darlington Football Club also throws up some strange figures. Initially it was claimed the football club was bought for £200k, but when it was shown in the following years accounts the figure was shown as £666,066. "Where did that figure come from?" asked the barrister. "You better ask my accountant" replied Reynolds.
George was then quizzed on just how much of his OWN money was put into the new stadium. Reynolds stated that he was allowed to take money from GRUK as it was his money that started the business up years ago. "That money was the company's. The fact that you could have taken it out by some lawful mechanism isn't the issue, that lawful mechanism was never invoked. The money was lawfully the company's." the barrister told Reynolds.
The Reynolds told how if he did things legally he would have had to pay 50% tax, so he did it the wrong way instead.
Reynolds was asked why he bought the shares of Darlington Football Club for £1 from GRUK when they had paid £666k for them months earlier. "You can buy shares for that, they can be worth two pence the next day. I am not into stocks and shares, I am oblivious to shares to be honest."
was GR's answer.
A few other strange financial dealings were discussed but they didn't involve the football club. But another loan of £0.9m was given to the club after the £6m loan was written off. Once again GRUK, which went bust with debts of millions, were the kind donators.
It was revealed how Reynolds cash flow had dried up and work on the stadium was struggling to carry on. Strange that as when I visited the stadium at this exact time, due to concerns about a slow down in construction, I was advised by GR that there was no such problems and then told about how he issued a writ on ICI. It was at this time he talked about erecting the messageboard at the ground.
The car park at the stadium only got laid after Reynolds did a deal with Hall Construction to carry out the work in exchange for his engineering yard at Coundon because he had no money left to do it.
The case has now been adjourned and will return at a future date. After the hearing Reynolds said that he was 'delighted' to be given the opportunity to explain himself.
On a final note, in the last set of accounts it has stated that Reynolds 'Director's Account stood at £5.6m. Reynolds now claims he is owed £14m. As yet there has been a lack of evidence on either claim.
So the question must be asked. Just how much of Reynolds' OWN money was put into the club?