QPR REPORT

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Timeline: The QPR "Loan Deal Thread - Claims and Responses

Sunday Mirror/Paul Smith "QPR FACE DROP OVER LOAN DEAL"

QUEENS Park Rangers face being relegated from the Championship or handicapped with a severe points deduction when the Football League board meet on Thursday.
The League is furious that QPR seriously breached their rules by entering into an illegal loan agreement with League One Oldham.
They borrowed £500,000 against the future sale of 24-year-old winger Lee Cook. The Football League has ordered QPR to repay the money.
But QPR's financial crisis has deepened leaving them in a perilous position after the original cheque they issued to - repay Oldham bounced.
However, QPR chairman Gianni Paladini insisted last night: "We paid the cheque to Oldham on Friday. I can tell you now that everything is satisfactory."
A Football League source said: "We have unlimited powers to take an acceptable course of action in the case of QPR." Sunday Mirror

July 9, RESPONSE On LSA FAN BOARD BY QPR DIRECTOR/LEGAL COUNCIL, Nick De Marco, Responding in his personal capacity

Query and Response

NICK DE MARCO RESPONSE

"...I will do my best to answer, in a personal capacity and to my best ability, the questions you have raised....
Taking your questions in the order you raised them:
I know that in a previous email on this you said there would be no further ramifications to QPRFC, do you and the rest of the board still feel this to be the case?
Yes. Indeed it is my understanding the story in the press is not reliable. I understand the Club has been assured today by the relevant authorities that the arrangements the Club has already put in place to resolve this issue remain acceptable. No charges have been brought against QPR. QPR have not been invited to attend any meeting or make representations to any meeting dealing with this matter in the next week, or beyond that. No disciplinary charge has been laid against QPR. No suggestion has been made by the relevant authorities of any sanction involving the deduction of points being considered.

The journalist’s story was incorrect on a number of other counts, the most significant of which I understand are as follows:
(i) The alleged loan reported was not made by Oldham FC and
(ii) No cheque bounced.

I do not know who is purported to have told the journalist that “"We have unlimited powers to take an acceptable course of action in the case of QPR." However the statement is pretty non committal. If you consider it in full it amounts to saying, “we can do whatever is appropriate”. That if course is true. If a journalist telephoned an officer of the FL and asked for a comment, I would not be surprised if such a non-committed comment was made. I don’t think too much needs to be read into it seeing as the Club has, I understand, been assured that the resolution it has put in place is acceptable.

It would seem to the average lay man that with several law people on the board, something of this nature should never have occurred, without wishing to sound rude, what checks were carried out as to the legality of this loan?
I was not involved in the negotiation of this matter nor was I involved in any initial review of it. I understand that the initial discussions concerned a proposal by Mr Blitz to assist in re-financing the ABC loan, and the money advanced was done so as a deposit or down payment in respect of those discussions. I understand those involved at QPR relied on the assurances of the lawyers representing Mr Blitz that the arrangement had been cleared with the football authorities and was not in breach of the rules. It remains a matter of debate as to whether any material rule was breached, but given the concerns raised, and our own review of the rules, it was agreed that it would be better to pay the money back and not pursue further the discussions about the re-financing of the loan rather than risk any breach.

With speculation that there is a chance QPRFC could face relegation or start the new season with points deducted, why has there been no official word on this from the Club, I would have thought it of uppermost important to put the supporters minds at rest on this? Can we expect an official statement?

The only speculation about a points deduction and relegation that has been made is in one small article of one newspaper. The article has a number of flaws and we do not believe there is any basis for that speculation. If the Club responded to every piece of speculation about it reported in the press it would probably only further fuel such speculation, would do little to quell it amongst those who wish to speculate, and would take up a disproportionate amount of time. I have, however, attempted to provide you with answers to the questions you have sent me on behalf of the LSA, and I hope that is a proportionate response to the issues raised.
Kind regards Nick De Marco


JULY 10 Kilburn Times/Ben Kosky - League may probe Blitz loan
QPR are confident they will face no action when the Football League meets tomorrow to discuss their controversial loan from Simon Blitz.
Rangers are in the process of repaying the £500,000 they received from Blitz, the Oldham Athletic chairman, as part of his proposed investment in the club earlier this summer.
A national newspaper report claimed last weekend that the Rs could be deducted points or even relegated if the League's board decides that a breach of their rules took place.
QPR have strongly denied that, as the newspaper claimed, their cheque to Blitz 'bounced' - and have also stressed that their dealings have always been with Blitz as an individual, never with Oldham.
A Loftus Road insider told the Times: "We were surprised by the story. We haven't been asked to attend the Football League meeting or told there is anything we need to reply to.
"The loan will be repaid in full. The club has contacted both the FA and Football League and they have confirmed they are not taking any action."
Football League spokesman Jon Nagle stated: "To our knowledge, at this point in time, the monies have not been paid. The matter will be discussed by the League board at their monthly meeting on Thursday."
Rangers accepted Blitz's money as part of their attempts to refinance the crippling ABC loan, but agreed to return it after learning that the FA had not authorised the arrangement...
. Kilburn Times


EARLY MAY PIECES RE LOAN POSTED AT QPR REPORT

May 1, 2007 - Boardroom Blues Site "[Lee] Cook Used As Loan Security"

May 2, 2007 - Oldham Chairman Simon Blitz Explains £500,000 Loan to QPR

May 6, 2007 - QPR Statement re Blitz Loan, ABC Refinancing and Returning Loan

May 8, 2007 QPR & Simon Blitz & Future Investment

May 8, 2007 - QPR's Return of Money to Oldham's Simon Blitz Noted