Swansea City: Club could face legal action over 2016 sale

Steve Kaplan (right) is principal and group founder of the Oaktree Capital investment firm. Jason Levien (left) is the CEO and managing general owner of the Major League Soccer club D.C. United

Members of Swansea City Supporters' Trust have voted to take legal action against Swansea's current and former owners over the 2016 sale of the club.

Jason Levien and Steve Kaplan bought a 68% controlling stake in Swansea with the Trust retaining 21.1%.

The Trust says it was excluded from negotiations over the ownership change and has a mandate to pursue legal action after a members' ballot.

Of those who voted last month, 81.8% were in favour of legal action.

The Trust does however remain open to "dialogue" with Swansea's owners and the selling shareholders in the 2016 deal.

"While the Swans Trust is preparing to proceed with issuing court proceedings as a result of well-known complaints resulting from the sale of the football club, it has always been the preference of the Trust to resolve all issues outside of court," the Trust said in a statement issued to BBC Sport Wales.

"While there has been no communication from the other parties in recent months, our door remains open for future dialogue to resolve this issue, in the interests of all parties and particularly the football club, although we are almost in stoppage time if there are to be negotiations before court proceedings are issued."

Levien and Kaplan led an American consortium which took charge of Swansea in a deal that valued the club at around £100m.

Former Swans chairman Huw Jenkins, Bulk Vending Systems - who are partly owned by vice-chairman Leigh Dineen - Martin and Louisa Morgan, Brian Katzen and business partner Jeffrey Crevoiserat, Rob Davies and John van Zweden all sold shares in the club.

The Trust said at the time of the takeover it was disappointed by "a lack of engagement" over the share sale and revealed it was considering going down the legal route in October 2016.

There were talks about the Americans buying up to half of the Trust's shares but they were put on hold in May 2018.

There were attempts to resolve the dispute through mediation late last year and in early 2019, but the various parties did not come together on either occasion.

Swansea's owners have declined to comment on the vote for legal action.

The majority of the selling shareholders have either declined to comment or failed to respond to requests for comment.

But Julie Hurran, managing director of Bulk Vending Systems, said: "Bulk Vending Systems was always happy to attend mediation whether in person or by proxy and nothing has changed in that respect.

"We must point out that we did not withdraw from any mediation process. We would also like to point out that, prior to the mediation dates, the Trust met with other selling parties but we were excluded from that meeting by the Trust even though we asked to attend."

Should the Trust be successful in a legal battle - which may last for months or even years - Swansea's owners could be forced to purchase some or all of the Trust's shares in the club at the same price that was paid in the 2016 takeover.

Swansea's seven-year spell in the Premier League came to an end in 2018. They have made an impressive start to the new Championship season under head coach Steve Cooper, taking 16 points from their first six league games.