Raith Rovers: Hong Kong-based investment firm could buy rival Scottish club instead if Rovers deal is not agreed 'within a week'

Gordon Smith, the man advising Silverbear Capital Inc in their proposed takeover of Raith Rovers, reckons the two parties have a week to sort out their differences and agree a deal or Silverbear could invest in a rival Scottish club instead.
Gordon Smith is advising Silverbear Capital Inc during proposed purchase of Raith Rovers (Pic by Rob Casey/SNS Group)Gordon Smith is advising Silverbear Capital Inc during proposed purchase of Raith Rovers (Pic by Rob Casey/SNS Group)
Gordon Smith is advising Silverbear Capital Inc during proposed purchase of Raith Rovers (Pic by Rob Casey/SNS Group)

Talks have stalled between the Hong Kong-based company - led by Peter Chun - and Raith owner John Sim, but former SFA chief executive Smith revealed that the deal is far from dead in the water.

"The investors are still interested in taking over the club,” Smith told the Fife Free Press. “I like the fact the club has a bit of history and there’s the potential to improve the club and take it forward.

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"One of the things that’s held it back is finance and the people who are looking to invest do have a considerable amount of money.

"If this breaks down with Raith Rovers then my understanding is that there is a good chance that they’ll go and look for another club in Scotland.

"I think accepting this offer was always in Raith’s interest because they are looking to sell. Therefore they want to get a good buyer in and that’s why it depends whether they think this is a proper bit of business.

"That’s the thing that has to be decided upon, whether they think that these buyers are going to improve the club.

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“When they sell the club they want it to be to people who have the club at heart and do their best for the club.

"That’s the ongoing problem at the moment, where the difficulties are coming from. We will wait and see what happens.

"I think there would have to be some sort of agreement within the next week.”

Despite their strong interest in buying Championship outfit Rovers, Silverbear Capital stated this week that, after two months of applying due diligence, further discussions regarding the acquisition were on hold, citing “shortcomings and lack of corporate social responsibility by the management” and the fact that Rovers had allegedly backtracked on a verbal agreement to sign two free agents brokered by Silverbear via Mike Dellios. These players were reportedly a Swiss international and a star “from one of the top clubs in world football”.

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Rovers responded by saying: “The club can confirm that over the past couple of months they have held discussions with Mike Dellios, Gordon Smith and James Carlin regarding the potential sale of both the football club and Stark Park Properties.

“Due to this group feeling the need to make these discussions public we feel as a club we need to respond to ensure everyone connected with Raith Rovers Football Club understands where we are.

“We do not recognise the circumstances described in their statement but note they wish to continue discussions.

“Mr Dellios approached the club and advised he was representing Hong Kong based Silverbear Capital Investors and had the funding required to purchase a controlling interest in Starks Park Properties and Raith Rovers Football Club.

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“Raith Rovers Football Club have had as yet no direct discussion with Silverbear Capital Investors nor has the financial guarantee been forthcoming.

“During these discussions it also became evident that Mr Dellios’ vision was not beholding of our club values nor was his conduct supportive of the standards generally accepted within Scottish Football.

“We do not want to specifically comment on the details given by the group around the offering of players apart from saying that subject to funding being available the manager makes decisions on who to sign and he decided that the players were at best squad players and would not add any value to the current squad.

“These same players have been showcased at other clubs in Scotland and have not been offered contracts.

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“As proud custodians of Raith Rovers Football Club, our first and most important responsibility is to protect it and safeguard its long-term future, while upholding the club’s values and conducting our business in a professional manner.

“We will continue to discuss potential investment with other interested parties.”

Responding to the Rovers statement, Smith added: "The investors are looking at a club that they think they can turn around. That’s why Raith Rovers became attractive and why Mike Dellios has been fronting this for them over here.

"He’s got a football academy of players. He’s from Switzerland and has players over here, putting them playing games against clubs.

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"He put some players into Raith Rovers and that’s why he decided that they were a club maybe with potential.

"I think Raith stated that these players had been put out to other clubs (and rejected) but that doesn’t relate to these two players we’re talking about.

"There is no doubt they are quality players. They are certainly players who have got something to offer.

"One of the things that was ongoing was the fact that we were wanting to get players in there, even at this moment in time when negotiations were still going on. That was possible.

"Mike Dellios said there was a verbal agreement from Raith to sign these two players, who have already been in at Raith training. They are both midfielders.”

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