Wednesday 6 February 2008

New Legal Challenge

West Ham United say they are prepared to go to court to fight a new legal challenge from the owners of Carlos Tevez over £7 million in 'unpaid' fees relating to his one-year spell at Upton Park. According to article in The Telegraph, Kia Joorabchian, the player's agent and front man for the two offshore companies which own the Manchester United striker, filed a writ in the Chancery Division of the High Court last week. It is claimed his lawyers are due to lodge the particulars of their claim at the court today and, according to the writ, Joorabchian is seeking an outstanding sum of £4.5 million, plus a further £2.6 million which, he alleges, was due to be paid to him by West Ham on Jan 31.

The Iranian born businessman is understood to be claiming he has documentary and taped evidence to back up his claims while West Ham United insist they do not owe any money pertaining to this matter, adding that they are ready to go to court to prove it. A club spokesman is quoted as saying: "We have been aware of this claim from Mr Joorabchian for some time. In our view there is no substance to it and, if necessary, we will defend our position in court."
Club representatives insist they will not know exactly what Joorabchian is claiming until he files the particulars with the court. He is not thought to be seeking any monies on behalf of Tevez. Instead, it is thought the claim relates to loan fees, insurance for the player and other agents' fees he believes he was contractually entitled to. The first part of the claim is understood to be linked to promises made by the club's former chairman, Terry Brown, and managing director, Paul Aldridge, who negotiated the original loan deal which took Tevez and Argentine team-mate Javier Mascherano to West Ham in August 2006. The second tranche of £2.6 million is understood to relate to a verbal agreement Joorabchian says he had with Eggert Magnusson - the club's former chairman and frontman for the Icelandic takeover by billionaire Bjorgolfur Gudmundsson in November 2006.

West Ham United have always maintained no verbal or written agreements exist to back up Joorabchian's claims; it was one of the central tenets behind the club's stance during the protracted legal wrangles throughout the summer. They also believe that any outstanding issues with Joorabchian or Tevez's owners, Just Sports Inc and Media Sports Investment, were settled at the time of last August's out-of-court deal which secured the player's transfer to Manchester United. At that time, in an agreement designed to placate the Premier League, Just Sport and MSI agreed to pay West Ham United £2 million for the release of Tevez's registration. Manchester United agreed to pay Just Sport and MSI a £5 million loan fee plus £5 million a year to Tevez in wages. The deal avoided a bitter and highly expensive court battle.

A Football Association arbitration panel are due to rule next month on Sheffield United's claim that West Ham should not have been allowed to continue playing Tevez after they were found guilty of breaching league rules on third party ownership last season. A Premier League chairmen's meeting tomorrow is expected to prohibit the third party ownership of players.

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