Bailiff threat over lack of payout from Swansea City
AFORMER Swansea City Football Club director has threatened the club with bailiffs over unpaid compensation.
Steve Penny said he was yet to receive funds following a remedy hearing held on July 5 to discuss compensation he and another ex-director should receive following their dismissal.
It follows an earlier employment tribunal, held over a week last December, which unanimously judged that Mr Penny and Donald Keefe’s claims of constructive unfair dismissal were “well founded”. Judge Cadney awarded Mr Keefe £78,962 compensation, whilst Mr Penny received £30,000.
Both men were given a further basic award of £10,059 each. The club have said the payments are being processed.
Taking to Twitter, Mr Penny wrote: “Now two years since club unlawfully removed Don Keefe and I and four months since tribunal concluded fundamental breach of contract.
“Club now failed to pay the tribunal compensation order. Very regrettably advised to enforce via High Court bailiffs now.”
The hearing was told previously that both men had been directors of the club and members of the board which had managed its affairs, and were involved in major decisions such as the move from Vetch Field to the Liberty Stadium in 2005.
They had played a key role in helping to safeguard the future of the club in the wake of Tony Petty’s stint at the helm in 2001 when Swansea City almost went out of business.
As part of a takeover of the club by a consortium led by American businessmen Jason Levien and Steve Kaplan in 2016, it was decided that only shareholder directors would remain on the board, meaning that as non-shareholder directors, both Mr Penny and Mr Keefe would have to resign from their positions.
Levien took the view that the board of directors was too large and needed to be smaller to be more effective and manageable, with only those who had “skin in the game” to remain on the main board, with the right to a board seat being 5% ownership.
But Mr Penny and Mr Keefe argued that, irrespective of any other breaches, the fact it was intended to remove them as directors was sufficient to amount to constructive dismissal.
A Swansea City spokesman said: “Following the outcome of the tribunal’s remedy hearing just over three weeks ago, the relevant funds for the award have already been transferred to our acting solicitor, who is currently processing payment to Mr Penny and Mr Keefe.
“This will be completed within a respectable and satisfactory timeframe.’’
Mr Penny declined to comment further at this stage, stating that legal steps were in motion.