Cove Rangers have agreed to pay £105,000 to one of their former principal sponsors after being taken to court to reclaim the cash, The Press and Journal can reveal.
Terry Cobban, of ACE Group, launched a civil action against the club and the case called in Aberdeen Sheriff Court yesterday.
During the hearing, Mr Cobban’s lawyer suggested the club ran the risk of becoming insolvent – a claim strenuously denied by Cove chairman Keith Moorhouse.
Within hours of the legal proceedings, which neither Cove bosses nor their lawyers attended, talks were held with Mr Cobban’s representatives.
Mr Moorhouse said he has now offered to pay the full amount to Mr Cobban to resolve the court case.
Second legal action
It is the second legal action facing the club after a creditor went to the same court last week in a bid to reclaim about £35,000 he believes the club owes him.
In contrast, the club disputes the validity of that claim – made by businessman Ged Gaffney – and plans to fight it.
However, Mr Gaffney responded to that position by reaffirming that he believes his claim is valid.
News that Cove have moved to resolve the matter with Mr Cobban means that the club can now focus on matters on the pitch, with the new season starting on July 15 as Cove host Spartans in the League Cup.
They will gear up for that with a home friendly against Aberdeen on July 12.
And Mr Moorhouse teased plans for an “exciting new initiative” set to be announced in the coming weeks.
‘Integrity and professionalism’
In the wake of yesterday’s court hearing, the club decided to clear up the issue by putting out a statement to the P&J.
Mr Moorhouse said: “We are aware of recent legal proceedings involving a former principal sponsor.
“While we are disappointed that these contractual matters could not be resolved privately and amicably, we remain committed to handling them with integrity and professionalism.
“An offer in settlement has been made to Mr Cobban today to resolve the court case.
Disputed claim
“We are also aware of a claim by a former sponsor (Mr Gaffney).
“While we won’t comment on individual circumstances, it appears that family-related disappointment has played a part in this situation,” said Mr Moorhouse of Mr Gaffney, whose son Myles Gaffney played for Cove until May this year.
Mr Moorhouse added: “Unfortunately, we believe the matter has been taken out of context.
“We will defend the claim in the appropriate manner and hope it can be resolved soon, allowing all parties to move forward.”
Mr Gaffney did not wish to comment.
Chairman: ‘We continue to operate responsibly’
During yesterday’s court hearing, Mr Cobban’s lawyer, Robert McDiarmid, made a statement to Sheriff Andrew Miller.
The statement suggested the club ran the risk of becoming insolvent.
Mr McDairmid told the court: “There is a real and substantially risk [that the claim] could be defeated by insolvency or the removal of assets.”
However, addressing that in his statement today, Mr Moorhouse said: “We want to be clear; Cove Rangers FC is not facing insolvency.
“Our financial position is in line with most clubs at our level, and like many, we experience seasonal cash flow variations, particularly during the close season.
“This is a common and well-understood aspect of football club operations.
‘Operating responsibly’
“We also recognise the wider economic pressures affecting small businesses and community organisations.
“Despite these challenges, we continue to operate responsibly and with a focus on long-term sustainability.
“We’re grateful to our supporters, sponsors, and suppliers for their continued loyalty. Your backing is the foundation of our club.
“We will soon be sharing details of an exciting new initiative, something we believe is a first in Scottish football, that will help set Cove Rangers on a stronger path for the future, both on and off the pitch.”
A spokesman for Mr Cobban, a former club sponsor, said: “My client does not wish to provide any comment at this time.”