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SWINDON TOWN: Possible Di Canio lawsuit one reason for embargo
THE potential of a lawsuit involving former manager Paolo Di Canio is one of the reasons Swindon Town remain in embargo, the Advertiser understands.
In a statement issued yesterday, the Robins’ board cited the “possibility of legal action from previous employees that must be covered by the club for the Football League to have comfort to lift the transfer embargo” as a contributing factor to Town’s inability to delve into the loan market.
The Adver understands Di Canio is still considering suing the club for breach of contract but no legal action has been issued as yet, although dialogue has taken place between the legal representatives of the respective parties. Questions remain regarding whether or not a possible lawsuit would prompt the Football League to continue the embargo.
The League was not available for comment last night while Di Canio’s representative politely declined the opportunity to comment when contacted.
The embargo was first placed on the club in January during the sale of Town to Seebeck 87 Ltd, and prevented the loan transfers of Bradley Wright-Phillips, Marlon Pack and Danny Green on deadline day as the financial future of the Robins remained unclear.
It was expected to be lifted when the club provided proof of funds to the League and had their financial model approved prior to the completion of the takeover last month but it still currently hangs over the County Ground.
The statement issued by Swindon’s board also suggested that outstanding amounts due dating back as far as 1957 have provided a stumbling block of late.
It is believed that these sums of money, the majority of which are understood to be 50 years old or more and come in debenture form, total around £30,000.
They were only recently discovered as due diligence was undertaken which had been made impossible by the speed at which the takeover of the club went through in January.
Town still aim to be out of embargo before the end of the emergency loan window, which closes on Thursday, with as many as four players understood to be lined up.