Bassini ordered to repay £1m Russo Hornets' payment (From Watford Observer)
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Sham, secrecy & shredders - Russo brothers' cash backing of Bassini's Watford FC reign kept out of public eye, court hears
12:30pm Friday 22nd March 2013 in News
By Mike Wright, Chief Reporter
Bassini ordered to repay £1m Russo Hornets' loan
A high court judge has ruled that former Watford FC owner Laurence Bassini should pay back almost £1 million given to him by ex-hornets directors Jimmy and Vince Russo.
Mr Justice MacKay made a summary judgement on £959,500 paid in February 2012, which the Stanmore businessman denied was a loan but part of a secret arrangement between the them to covertly own the club.
Mr Bassini argued the money, which was meant as a bridging loan to help the Watford FC’s cash flow problems, was paid by Russos' to the club and not him.
The court heard negotiations between the two parties and their advisors for the cash were “totally covert” and that Mr Bassini’s solicitor had been urged to shred documents relating to it.
However Mr Justice MacKay said a letter regarding the money named Mr Bassini twice as the recipient and found with Russos’ claim.
Jimmy and Vince Russo.
The judge did not rule on two earlier payments of £3.5 million and £135,000 made from Valley Grown Salads (VGS) - the company owned the Russo brothers – to Mr Bassini in early 2011, just before and after his takeover of the club.
Those two claims are due to be settled in a trial at a later date.
The Russos took Mr Bassini to court for last year for a total of £4,594,000, given to him in the period just before and during his tenure at Watford FC.
At yesterday’s hearing Mr Justice MacKay said the Russos’ case was that the money had been straightforward interest-free loans paid to Mr Bassini and they had produced a loan agreement to that effect.
However Mr Bassini’s case was that the loan arrangements were “a sham” and the payments were part of a secret scheme for him and the Russos to take joint ownership of the club.
Mr Justice MacKay said: “The defendant admits receipt of the money and says they were not loans at all. The first tranche was paid by the claimant to acquire a half share in the company that controls and owns Watford FC.
"The second tranche is the return of the money paid by the defendant to acquire the claimant’s shares in the holding company of Watford FC, which was Watford Leisure PLC.
"The third was described as bridging loan to Watford AFC and not a payment to the defendant.
“The defendant describes them as in effect the price of investment by the claimant in a joint venture in the forming of a new company (Watford FC Ltd) to acquire control of Watford FC.”
The court heard Mr Bassini, who has been bankrupted before, is a businessman with interests in property development and was keen to buy into a football club.
Mr Bassini started attending Watford FC matches in late 2010 and set up Watford FC Limited on January 12 2011, initially with orthopaedic surgeon Panos Thomas as the only individual named on the company’s reports submitted to Companies House.
Laurence Bassini and Panos Thomas.
The court heard that in the early part of 2011 Mr Bassini had a series of meetings with Jimmy Russo.
Mr Justice MacKay added: “The defendant says the loans were agreed as effectively a sham. It was built to mislead as to what the true nature of what was going on.
“What was going on, says the defendant, were negotiations and in the end an agreement to set up an arrangement. The set-up would be that the claimant and defendant would come together to acquire two shares in the leisure company and in the process own it 50-50.”
The court heard that there was a need for secrecy due to Mr Russo’s “unhappy” time as a minority share holder in the club’s former parent company, Watford Leisure PLC.
Mr Justice MacKay said: “The circumstances were unfavourable and views were formed and it would have been bad politics to advertise their return to control.”
Summing up Mr Bassini’s version of what this deal meant, he said: “The effect of this, to put it in plain English, would have been to put the claimant and the defendant effectively in equal control and ownership of Watford FC Ltd.”
The court heard that after the deal was done there was a declaration of trust executed that said Mr Bassini would hold Mr Russo’s 50 per cent share in trust for him.
Mr Bassini claimed there was a deal to write off the balance of the loan once the shares had been acquired.
Mr Justice MacKay referred to notes kept by Mr Bassini’s solicitor, Angelo Barrea, that stated the £3.5 million "was the price the claimant was willing to pay for joint ownership in Watford FC Ltd”.
He said: "I don't intend to read all the documents out, but they included a note from the claimant’s advisor, undated, which stresses the need for secrecy and confidentiality and that the negotiations should remain totally covert.
“To the extent he recommended that he shred that document".
The first £3.5 million payment was made to Bassini on February 2, 2011. The second for £135,000 was made on May 20, 2011.
Mr Bassini’s case was that the second tranche of cash related to Mr Russo’s minority share holding in Watford Leisure PLC, of 29.9 per cent, which at the time was thought to be worth in the region of £135,000.
Mr Justice MacKay said it was decided that if they succeeded in setting up the ownership company on a 50-50 basis it would be wrong for Bassini to return the proceeds from the minority shareholding in Watford Leisure PLC to VGS.
The third sum in the case related to a payment to Mr Bassini on February 24, 2012 of £959,500, which was described as a bridging loan needed because of the club’s cash problems.
Mr Justice MacKay said: “The claimant’s case is that Mr Barrea approached Mr Russo for a loan and the security officered for it was a forthcoming player transfer, the funds from which would be used when they materialised for the repayment of this loan.
“Initially Mr Russo was being asked by the defendant to make this payment to the football club which had its usual cash flow problems.”
Mr Justice MacKay added that letters had been produced that named Mr Bassini as the recipient of the money.
He added: “It is plainer in that second letter that the loan is to the defendant who is twice named in it. The loan is to him and the repayment is to be by him.
“The defendant's case is that it is for presentational purposes or in other words a sham. Like the loan agreed the year before it is part and parcel of the agreement between the original parties.”
As a result Mr Justice MacKay made a summary judgement that Mr Bassini should repay the £959,500 as well as a portion of the Russos’ legal costs.
Following the judgement at the Queen's Bench Division of the High Court of Justice yesterday Mr Justice Mackay also continued a freezing injunction on Mr Bassini’s assets, with a limit of £1 million.
Mr Bassini’s barrister, Ian Mayes QC, said his client’s home was worth more than £1 million and he had no intention of selling it in the immediate future.
Comments(37)
corbindallas
says...
1:16pm Fri 22 Mar 13
Harry's Bar
says...
1:45pm Fri 22 Mar 13
Harry's Bar
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2:07pm Fri 22 Mar 13
piemagico
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2:17pm Fri 22 Mar 13
Zorg the Leveller
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2:25pm Fri 22 Mar 13
WessexLad
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2:31pm Fri 22 Mar 13
piemagico wrote:Brilliant! It doesn't bode well either for Bassini's appeal against his 3 year ban from football. If he goes through with it, the ban should be increased.
What a bunch of bandits. This has got to be the first legal case in history where you hope it's true that the lawyers are the only winners.
mickallen57
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2:34pm Fri 22 Mar 13
Thank God for the Pozzos and Zola onwards and upwards COYH.
mickallen57
says...
2:37pm Fri 22 Mar 13
mickallen57 wrote:That should be a pair of plonkers L.B for all the reasons stated above and much more and me for thanking him (ignorance is bliss)while applauding him!
What is killing me is thatI saw Bassini at a match in the early days and clapped him and as he walked passed thanked him for what he had done! What a plonker still wish the judge will clap him too in Irons that is. If anyone hears of me clapping ex bankrupt con-men please escourt both from the ground asap.
Thank God for the Pozzos and Zola onwards and upwards COYH.
JohnnyHornet
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2:51pm Fri 22 Mar 13
abbotshornet
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3:15pm Fri 22 Mar 13
Good riddance to Baz.
COYGBs!
Smilingburkinshaw
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3:37pm Fri 22 Mar 13
Bringe
says...
3:40pm Fri 22 Mar 13
KeithMercer
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4:08pm Fri 22 Mar 13
I know you can only say it as you see it but surely you must agree we our much better off without the likes of the Russos and Big Bad Baz !!
lutondown
says...
4:32pm Fri 22 Mar 13
The amount of good people taken in by Bas is staggering. I wasn't simply because I knew someone who knew him. I did take hell of a lot of abuse back then, some by who I now have a pint with and even swap gifts ( Bush baby!!)
The guy should be jailed, and I suspect he will have to pay everyone back as his assets are frozen.
I've just one more thing to add to this, was does Graham Taylor think? I'd like to hear.
mattymashup
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5:22pm Fri 22 Mar 13
lutondown
says...
5:26pm Fri 22 Mar 13
mattymashup wrote:It would be unfair to say told you so as I had inside info. He was a knob, pure and simple!
Oh my! I was one of his supporters when he took over, and believed all his Bs about putting his own money into the club to keep it going. I would apologize but I didn't throw any insults around the chat rooms, I'm so happy with the new regime though and take a massive interest in where this story will end. Seems baz owes a lot of people a lot of money. Maybe the thing in the safe that he wanted so badly was what was left of his integrity! Forza Watford!
tommy gunn
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6:05pm Fri 22 Mar 13
There was only one Scully
says...
6:30pm Fri 22 Mar 13
Now, wont that be a shame!
nevertrustedbaz
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6:58pm Fri 22 Mar 13
It shows the arrogance and stupidity of the man. Bankrupt Baz is no joke but a deluded 'dangerous' individual.
Someone posted during the week a Thank You Pozzo's banner at the next home game. Lets get going on this. They have saved us from what I fear was almost certain administration and possible worse.
The future is now yellow but what a close call!
lutondown
says...
7:13pm Fri 22 Mar 13
nevertrustedbaz wrote:Yes I think that banner is appropriate, as they have indeed saved us.
No genuine Watford supporter need feel any sorrow for any of the parties involved in this sorry episode.As someone who has spoken to all the key players, the Salad Boys are the last persons that I would double cross.
It shows the arrogance and stupidity of the man. Bankrupt Baz is no joke but a deluded 'dangerous' individual.
Someone posted during the week a Thank You Pozzo's banner at the next home game. Lets get going on this. They have saved us from what I fear was almost certain administration and possible worse.
The future is now yellow but what a close call!
duckfan10
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8:05pm Fri 22 Mar 13
D.unstable
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10:10pm Fri 22 Mar 13
mk6 hornet
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6:36am Sat 23 Mar 13
Bush Hornet
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8:33am Sat 23 Mar 13
lutondown wrote:I always give people the benefit of the doubt and as you rightly imply, it was easy to be taken in. He released money to Dyche who bought loads of players after all.
Thanks to my old mate Harry of the bar, I went back to a Bas post circa Feb 2012.
The amount of good people taken in by Bas is staggering. I wasn't simply because I knew someone who knew him. I did take hell of a lot of abuse back then, some by who I now have a pint with and even swap gifts ( Bush baby!!)
The guy should be jailed, and I suspect he will have to pay everyone back as his assets are frozen.
I've just one more thing to add to this, was does Graham Taylor think? I'd like to hear.
Anyway many of Bas's detractors were too malicious to have credibility. I'm sorry to say that but slating Dyche and certain players in the same breath as slating Bas weakened the case. Just sounded like negative white noise. Hence the big division last year between the happy clappers and the sad slappers. Thankfully we've moved on.
But I'm happy to apologise to anyone I've abused along the way. Times have changed and the bickering should stop. And Roy Stockdill should keep off these boards. He's not a WFC fan and he hates people.
But Lutondown you are a true fan, and deep down you're a socialist too (don't deny it) so I'll look forward to seeing you maybe April 6th as we unite against a common sweaty enemy and one of the biggest (fattest) villains of them all.
Only 2 Ross Jenkins
says...
10:15am Sat 23 Mar 13
lutondown wrote:I may be wrong but I am sure GT left saying he was happy that the club was being run properly. That was about 3 or 4 weeks before the Pozzos took over I think, so June 2012 approx.. So GT must have known about the impending takeover and was happy to step aside. If there had been no Pozzos involvement I think he may have stayed on - but can you imagine if the sh!t really had hit the fan with GT in charge? Most likely that GT and Timperley etc were desperately trying to rid the club of Baz's involvement. I also think GT gave us all good warning of what may have been happening at the fans forum when Baz didn't turn up. We may have to wait for the GT autobiography to find out the whole truth!!
Thanks to my old mate Harry of the bar, I went back to a Bas post circa Feb 2012.
The amount of good people taken in by Bas is staggering. I wasn't simply because I knew someone who knew him. I did take hell of a lot of abuse back then, some by who I now have a pint with and even swap gifts ( Bush baby!!)
The guy should be jailed, and I suspect he will have to pay everyone back as his assets are frozen.
I've just one more thing to add to this, was does Graham Taylor think? I'd like to hear.
lutondown
says...
12:16pm Sat 23 Mar 13
Bush Hornet wrote:Lol! And we were all guilty!
lutondown wrote:I always give people the benefit of the doubt and as you rightly imply, it was easy to be taken in. He released money to Dyche who bought loads of players after all.
Thanks to my old mate Harry of the bar, I went back to a Bas post circa Feb 2012.
The amount of good people taken in by Bas is staggering. I wasn't simply because I knew someone who knew him. I did take hell of a lot of abuse back then, some by who I now have a pint with and even swap gifts ( Bush baby!!)
The guy should be jailed, and I suspect he will have to pay everyone back as his assets are frozen.
I've just one more thing to add to this, was does Graham Taylor think? I'd like to hear.
Anyway many of Bas's detractors were too malicious to have credibility. I'm sorry to say that but slating Dyche and certain players in the same breath as slating Bas weakened the case. Just sounded like negative white noise. Hence the big division last year between the happy clappers and the sad slappers. Thankfully we've moved on.
But I'm happy to apologise to anyone I've abused along the way. Times have changed and the bickering should stop. And Roy Stockdill should keep off these boards. He's not a WFC fan and he hates people.
But Lutondown you are a true fan, and deep down you're a socialist too (don't deny it) so I'll look forward to seeing you maybe April 6th as we unite against a common sweaty enemy and one of the biggest (fattest) villains of them all.
Oracledave
says...
2:25pm Sat 23 Mar 13
It must be paranoia but I suspect that Baz will run the same argument regarding this 'loan' . It failed first time round because he was specifically named in related correspondence. Let's hope there is similar evidence with this larger debt. Woudn't want the club to be saddled with it even if we can afford it !
lutondown
says...
2:41pm Sat 23 Mar 13
Oracledave wrote:It must be paranoia, as they lent the money to Bas not the club per se as they sought to get in through the back door. Bas being the back door. This is between Those two parties
"The judge did not rule on two earlier payments of £3.5 million and £135,000 made from Valley Grown Salads to Mr Bassini in early 2011, just before and after his takeover of the club. Those two claims are due to be settled in a trial at a later date."
It must be paranoia but I suspect that Baz will run the same argument regarding this 'loan' . It failed first time round because he was specifically named in related correspondence. Let's hope there is similar evidence with this larger debt. Woudn't want the club to be saddled with it even if we can afford it !
Reginald Dwight
says...
4:00pm Sat 23 Mar 13
lutondown
says...
5:09pm Sat 23 Mar 13
lutondown wrote:I hope you've called the TO to change then my Svedish friend! If you don't know how then, you ring them, express your wish to move for the game, have your fan Id and seat no at hand, and Hagars your uncle! ( no Bobs in Thors lands).
Bush Hornet wrote:Lol! And we were all guilty!
lutondown wrote:I always give people the benefit of the doubt and as you rightly imply, it was easy to be taken in. He released money to Dyche who bought loads of players after all.
Thanks to my old mate Harry of the bar, I went back to a Bas post circa Feb 2012.
The amount of good people taken in by Bas is staggering. I wasn't simply because I knew someone who knew him. I did take hell of a lot of abuse back then, some by who I now have a pint with and even swap gifts ( Bush baby!!)
The guy should be jailed, and I suspect he will have to pay everyone back as his assets are frozen.
I've just one more thing to add to this, was does Graham Taylor think? I'd like to hear.
Anyway many of Bas's detractors were too malicious to have credibility. I'm sorry to say that but slating Dyche and certain players in the same breath as slating Bas weakened the case. Just sounded like negative white noise. Hence the big division last year between the happy clappers and the sad slappers. Thankfully we've moved on.
But I'm happy to apologise to anyone I've abused along the way. Times have changed and the bickering should stop. And Roy Stockdill should keep off these boards. He's not a WFC fan and he hates people.
But Lutondown you are a true fan, and deep down you're a socialist too (don't deny it) so I'll look forward to seeing you maybe April 6th as we unite against a common sweaty enemy and one of the biggest (fattest) villains of them all.
We need that Viking spirit to repel the Q Celt invaders ( in banter of course!)
a1derek
says...
1:16pm Sun 24 Mar 13
lutondown wrote:I think GT's silence during the entire Bassini reign speaks volumes. Although would like to hear GT's thoughts as well.
Thanks to my old mate Harry of the bar, I went back to a Bas post circa Feb 2012.
The amount of good people taken in by Bas is staggering. I wasn't simply because I knew someone who knew him. I did take hell of a lot of abuse back then, some by who I now have a pint with and even swap gifts ( Bush baby!!)
The guy should be jailed, and I suspect he will have to pay everyone back as his assets are frozen.
I've just one more thing to add to this, was does Graham Taylor think? I'd like to hear.
Also think it was his resignation as Chairman that effectively ended the Baz years. GT must have known everything was in place for the Pozzos so his resignation triggered the need for the bond to be repaid in full which Baz (or Russos) were never able to do. Thank goodness these jokers are gone - hopefully forever.
Harry's Bar
says...
6:34pm Sun 24 Mar 13
lutondown
says...
6:39pm Sun 24 Mar 13
Harry's Bar wrote:Can't understand why, great manager but surely we need to look forward, but if not, I'd like to see Ken Furphy reconnect...
I think GT needs to reconnect with the club. Not in an official capacity, just reconnect with the supporters as Graham Taylor the Football Manager. Hopefully he can do that once the club's legal case against Bassini is over.
But that's plain daft!
Harry's Bar
says...
12:44pm Mon 25 Mar 13
lutondown wrote:We need to look forward, but not forget the past. Also, I don't think you can compare Ken Furphy to Graham Taylor.
Harry's Bar wrote: I think GT needs to reconnect with the club. Not in an official capacity, just reconnect with the supporters as Graham Taylor the Football Manager. Hopefully he can do that once the club's legal case against Bassini is over.Can't understand why, great manager but surely we need to look forward, but if not, I'd like to see Ken Furphy reconnect... But that's plain daft!
lutondown
says...
12:57pm Mon 25 Mar 13
Harry's Bar wrote:I can, he Did it with no money, no chairman to back him. He was the first manager ever to take us out of the lower leagues,our first SF appearance.
lutondown wrote:We need to look forward, but not forget the past. Also, I don't think you can compare Ken Furphy to Graham Taylor.
Harry's Bar wrote: I think GT needs to reconnect with the club. Not in an official capacity, just reconnect with the supporters as Graham Taylor the Football Manager. Hopefully he can do that once the club's legal case against Bassini is over.Can't understand why, great manager but surely we need to look forward, but if not, I'd like to see Ken Furphy reconnect... But that's plain daft!
GT gave us days i'll never forget but, other than maybe a statue erected down the yellow brick Road ( a name mooted by D Unstable for occupation Rd.) I don't see any reason to connect to him! But as always we can all have our own thoughts on this
Smilingburkinshaw
says...
1:01pm Mon 25 Mar 13
Or Maybe not..........
Smilingburkinshaw says...
1:07pm Fri 22 Mar 13