Ex-Swans man claims he was ‘bullied’ into resigning
A former Swansea City board member says he was “bullied” and “intimidated” into resigning his position when the football club was sold.
US pair Steve Kaplan and Jason Levien snapped up 68% of the club’s shares in July 2016 to complete a shock takeover deal.
Three of the club’s oldest board members lost their positions as directors at the time.
One of them, lawyer Steve Penny, is now suing the club for unfair dismissal and age discrimination.
At a tribunal in Cardiff Mr Penny described how club lawyer Chris Farnell told him there would be “implications” if he refused to give up his directors position ahead of the takeover.
He said: “I knew there was a sale imminent but I never thought how it might affect my position.
“Companies change all the time and people do not get asked to resign or take a different post.”
He said he was told he must resign from the board of directors but could stay as an in-house lawyer.
The club says his removal was a condition of the sale of the club and it had been agreed that all board members must have at last a 5% steak in Swansea City.
None of those removed from the board were shareholders.
Mr Penny said when he refused to resign he went to a meeting with lawyer Chris Farnell – one of the lead lawyers in charge of the sale – who told him there his refusal would have “implications” on his ongoing employment.
According to Mr Penny he was told a lack of co-operation would not do him “any favours”.
Mr Penny also claimed he was given little information about how his job would change following the sale, and suspected he would have a diminished role.
Solicitor Jamie Jenkins, representing Swansea City FC, said no firm decisions were made until the sale was finalised on July 21 2016.
He asked Mr Penny if he accepted it was up to the owners what happened to the board of directors, which Mr Penny said he did.
He also told the hearing Mr Farnell denied bullying Mr Penny.
He added: “He told Mr Penny his resignation was a condition of sale of the club. He told you if you didn’t resign you could put the sale at risk.”
He added: “Mr Penny worked at the club for quite a number of years with very little numeration and ultimately was part of the team of people that progressed the club from a very low position in the league to the Premier League. Shareholders stood to make a lot of money from the sale but as a non-shareholder you would make no money from the sale. But you still felt that you should receive a financial reward for your efforts.
“You were resigning and not going to stay as a director and not getting your financial reward. Now you have brought this claim to get that money out of the club that you feel was owed to you.”
Mr Penny denied that and further claims his refusal to resign was partly due to not wanting to lose the status that came with a director position.
The hearing continues.