Club could have had to sell player to pay wages

Charlton were close to having to sell a key player to pay wages until Thomas Sandgaard acquired the club, Lee Bowyer has revealed: https://londonnewsonline.co.uk/charlton-athletic-boss-lee-bowyer-we-were-close-to-having-to-sell-a-player-to-pay-wages/

Duchatelet's claim on Charlton assets removed

A charge over CAFC Limited which was issued on January 23rd in favour of Roland Duchatelet to secure debt to him has just been released, according to a Companies House notification tweeted by VOTV editor Rick Everitt.

The Rickster explains: 'What this means is that Staprix (Duchatelet) no longer has a claim on Charlton assets to secure money he was owed. Not clear that the charge was strictly lawful in the first place as it did not have the needed consent of ex-directors. Looks like a tidying up exercise, but who knows!'

Anything that distances Duchatelet from the club is to be welcomed.

Two right back options for Addicks

Sounds as if Charlton have two right-back options - one of those is Adam Matthews, reports Richard Cawley of the SLP.

In the words of Highlander "there can only be one". Set to be resolved today/tomorrow in terms of which way the Addicks go states Cawley.

Charlton are in the money now, but are constrained by the spending cap says Lee Bowyer. Most clubs were able to do their spending in the summer before the cap came into force: https://londonnewsonline.co.uk/charlton-athletic-boss-lee-bowyer-weve-got-money-now-but-spending-it-isnt-easy/

Former Sunderland trialist Stan Asomugha is on the radar of Charlton. The former West Brom winger played a number of games for the Black Cats’ under-23 towards the end of the 2019/20. He played for U23s yesterday.

Bowyer: 'We need someone who can finish'

Lee Bowyer told Richard Cawley of the SLP: 'We need to bring in a striker who is going to take them chances we’re creating. We can’t keep doing that - missing chance after chance after chance. We need someone who is going to finish.'

'We had someone here and he went back home because things changed in the middle of the week. But now I hope to get that back going and get him back into the building next week.'

'I could have left on more than one occasion but I chose to stay because I want to be the person who takes Charlton back to the Premier League. It will take time but Thomas is here for the long haul and I want to be a part of that. I believe we'll get there.'

'I'm happy we can start moving forward and building - that's it. I'll sleep better now. I feel exhausted. I can't tell you how many sleepless nights I've had or waking up - seeing things get worse and worse.'

Richard Cawley tweeted on Monday afternoon: 'Doesn't sound like there is set to be any signings at Charlton today. Obviously work going on behind scenes to line things up.'

Cawley added: 'The trialist in action for the Addicks this afternoon is Ruben Carvalho, who had been with Aylesbury United.'

SLP report on yesterday's game: https://londonnewsonline.co.uk/charltons-defeat-at-lincoln-city-only-underlines-urgent-need-to-strengthen-squad/

West Bromwich Albion are targeting former Addick Karlan Grant.  They are prepared to pay Huddersfield £5m for a one year loan move and a total of £18m to sign him if they avoid relegation.   Apparently our cut on the sale would be £2m - £3m, presumably nothing from the loan.

Poor start to new era on the pitch

A new era may have started for Charlton off the pitch, but it was a poor start on the pitch this afternoon after the Addicks went down 2-0 to Lincoln City at the LNER Stadium.   All they left with was a collection of yellow cards.

Charlton had edged the first half at least in terms of chances, but then saw Lincoln score following a penalty on just past 45 minutes.  The Imps appeared to be offside.

In the second half Charlton played less well.   Lincoln often had possession and the final ball by Charlton was lacking.  Bonne and Washington did not link up as well as they had in the first half. Lincoln then scored their second in the dying minutes of normal time after Charlton had carelessly conceded a corner. 

Washington had one of the best chances of the game after three minutes when Doughty turned provider, but put the ball just wide of the post.

Charlton had a spell of pressure and then won three corners in succession around the half hour mark, but to no avail.

Charm merchant McGrindles received the first yellow card of the game for a foul on Levitt.  A Lincoln free kick from a dangerous position was blocked.

As the half came to a close, a free kick was awarded against Pratley for an alleged handball.   As the ball was cleared from the area, the referee awarded a penalty.  I wasn't sure what it was for, but he was decisive.

Amos saved the penalty, but Grant put the ball in the net from the rebound.   They seemed to be offside and the referee and linesman had a discussion.  Apparently, they weren't sure whether it was offside or not, so decided to award the goal.  Captain Darren Pratley was furious and an equally furious Bowyer remonstrated with the referee as he walked off the pitch.

Half time: Imps 1, Addicks 0

It was a lively game again in the second half.  Fameno was pulled off on 60 minutes for Watson.  He had seemed comfortable, but perhaps he can't play 90 minutes.

On 65 minutes Barker put in a great cross to Bonne, but he was unable to use it.  I thought that Bonne had a disappointing game.

Pratley received a yellow card on 75 minutes.   Charlton made a double substitution with Otzumer being replaced by Forster-Caskey and Williams coming on for Levitt.  Williams made some positive contributions.

Watson took a yellow card for the team and then Eyoma received one for following Doughty.  Lincoln had most of the possession.   Barker received a yellow card for repeated fouls.

Osilaja, who had had a decent game up until then, played the ball along the line to Amos and conceded the corner.  Lincoln then scored through Montsma from a free header.

In the six minutes added on, Forster-Caskey received a yellow card for a foul while Johnson was given one for kicking the ball away.

There's a lot of work to do.

On 65 minutes

Another new signing

Charlton have signed Norwich defender Akin Famewo on a season-long loan, reports Richard Cawley of the SLP.

Born in Lewiisham, the 21-year old is a centre back: https://en.wikipedia.org/wiki/Akin_Famewo

Improvement needed against Lincoln

A big improvement is needed against Lincoln City at Sincil Bank/the LNER stadium tomorrow say CAS Trust in their preview, classifying the performance against Doncaster as 'the most dispiriting under Lee Bowyer's management': https://www.castrust.org/2020/09/lincoln-time-to-restore-some-pride/?utm_source=rss&utm_medium=rss&utm_campaign=lincoln-time-to-restore-some-pride

Despite the boost given by the takeover, it has only been possible to minimally strengthen the squad so far.  One crumb of comfort is that we have a good record against the Imps.

The Imps finished 16th in League One last season and Four Four Two are predicting a 10th place this season.  They comment: 'Expect more from the Imps this season.  Michael Appleton made do with a squad to play very differently from his own way and just as he toiled at Oxford before winning promotion in the second campaign, he should give Lincoln an edge.'

The contributor of the 'fan file' says: 'The fans' opinion of the gaffer is split, although the bigger group are firmly behind him.  He's very different to Danny Cowley and some have trouble accepting that era is over.  We'll finish 15th.'

Busy ex-West Ham forward Anthony Scully is a potential danger man.

First signing of Sandgaard era

Ben Watson is the first signing of the Sandgaard era: https://londonnewsonline.co.uk/charlton-athletic-sign-former-forest-and-palace-midfielder-ben-watson-to-kick-off-thomas-sandgaard-reign-in-style/

Richard Cawley of the SLP commented, 'Yeah, he is 35. But coming off a really good season for Forest. Convinced he'll be quality for Charlton.'

Forest boss Sabri Lamouchi - speaking in September - said: “He had an amazing season – probably one of the best midfielders in the Championship. He was my captain and my brain on the pitch, so just for that, ‘thank you so much’."

We can do with experienced players alongside our youngsters.

It's a done deal!

In an open letter to Charlton fans, Thomas Sandgaard said he wanted them to know before anyone else that he had completed his acquisition of the club.   This is now available on the official site: https://www.cafc.co.uk/news/view/5f6dd60385c8a/an-open-letter-to-charlton-fans-from-thomas-sandgaard

Sandgaard has confirmed that he has passed EFL's OADT test and that he expects official confirmation that the transfer embargo is gone - adds "it kind of is already".

Richard Cawley reports: 'Sandgaard's deal has seen him increased the lease on The Valley and TG to 15 years. Says costs on that side have risen as part of deal with Duchatelet. It buys everyone peace of mind that we'll keep playing at The Valley and have the training ground."

Thomas Sandgaard: "There won't be any drama. There is nothing to be nervous about going forward - we can focus 100% on the club and getting back to the Premier League."

Thomas Sandgaard describes it as "an entirely clean deal of everything - versus before when things were interconnected in some way. That is totally undone, otherwise we couldn't have done deal."

Sandgaard on the lease of the land: "It might be the right time to negotiate on those then [at some stage towards end of the agreement]."

Four signings are ready to go, one of them Adam Matthews, reports Richard Cawley.

Charlton's financial plight

Richard Cawley of the SLP reviews Charlton's financial situation given that matches are likely to be played behind closed doors for six months.  He estimates losses of £10m.  There has been no response from the club on how salaries will be paid: https://londonnewsonline.co.uk/efl-finally-make-a-statement-but-its-not-the-one-that-charlton-fans-have-been-waiting-so-long-to-hear/

Sandgaard: 'It's tearing me apart'

Thomas Sandgaard said he couldn't comment on whether he had been approved by the EFL - which has certainly been suggested in some quarters, reports Richard Cawley of the SLP.

He's back in Colorado - flew back there shortly after last weekend's game against Doncaster. His dialogue over striking a deal for The Valley and training ground has been with point man Lieven De Turck - not Roland Duchatelet.

Sandgaard: “It’s tearing me apart that I can’t tell people everything because it is not that far away. I just want to be able to say it is all official – clear and clean – and that we can start bringing players in.”

Alex Gilbey has been ruled out of the trip to Lincoln on Sunday after picking up an injury in training: https://londonnewsonline.co.uk/charlton-suffer-midfielder-injury-setback-as-thomas-sandgaard-says-it-is-tearing-him-apart-not-to-provide-takeover-update-to-fans/

Robbo returns to his native heath

After ten years in Florida, former Addick John Robinson has returned to England and is working with Haywards Heath Football Club: https://www.westsussextoday.co.uk/sport/football/haywards-heath-fc-link-former-charlton-and-brighton-star-boost-footballs-next-generation-2981497

Property is a problem with takeover

Thomas Sandgaard has tweeted: 'Wanted to give fans an update. Discussions have been moving forward positively so far, however the property piece remains an obstacle.' [Does he mean 'price' rather than 'piece'?]

Either way, VOTV editor Rick Everitt has tweeted: 'Oh look, it's Roland again, like every time in the last five years.'

One fan commented: 'This £50m will be a block to any bidder that wants to own the lot. All because Roland took ESI at face value and didn't do due diligence. We've got to be into double figures of interested parties that he's ruined negotiations with.'

Sandgaard also tweeted: 'If we can’t agree immediately, the players we have lined up to sign will go elsewhere and that would ruin our season. I personally don’t want to be part of a scenario where we cannot sign the players lined up. Let’s get this done.'

No more players succumb to Covid-19

Following a positive test for Chuks Aneke, no more Charlton players have succumbed to Covid-19.  Aneke played in the Carabao Cup game at West Ham where former Addick loan player Josh Cullen, maestro manager Moyes and one other player tested positive yesterday: https://londonnewsonline.co.uk/charlton-athletic-report-no-extra-covid-19-cases-as-west-ham-trio-test-positive-this-week/ 

With a thin squad we can't afford to lose any more players.

How streaming money works

With fans banned from grounds for the forseeable future, one source of revenue for clubs, admittedly a relatively small one, is from streaming games.   Here the chairman of Colchester United explains how the finances work.  On the whole, it should work quite well for Charlton given the size of our support base:

'The way it works currently is that the home team keep all of the revenue for the tickets they sell through their own website and they also get the revenue for the first 500 that buy via the away team. For example: for Saturday’s game against Bolton, we sold 452 iFollow passes, (so we keep all of the revenue from those), and Bolton sold 2252 iFollow passes, (of which we get the revenue from the first 500).

This has put a very new aspect on the revenue that is available to clubs this season. Bolton made more money in gate receipts from our home fixture than we did because they had the revenue from 1,752 iFollow passes whereas we had the revenue from 952 iFollow passes. In normal times, we would have expected about £54,000 in home gate receipts from this fixture but we will receive just shy of £8,000, whereas Bolton would have expected about £600 for the 5% commission we pay them but will have received about £14,000 more than that.

We sold just over 300 streams for the away game against Bradford, so we earnt £0.00 for that away game and I expect that to be the case for every away game this season. So based on twenty three away games, Bolton look set to receive about £345,000 from the streaming of their away games this season whilst we can look forward to approximately £0.00.'

A note of caution: it may be that League One has a different model to League Two based on historical away attendances.  If I find out more, I will post again.

No acceptable bids for Bonne

Lee Bowyer has said that no acceptable bids have been received for Macauley Bonne with Barnsley said to be the latest club to express interest: https://londonnewsonline.co.uk/charlton-athletic-manager-clear-on-transfer-stance-over-striker/

Bowyer noted that Charlton had paid £200,000 for him.  BTW, it would be interesting to know who the 'people upstairs' Steve Gallen refers to for decisions are.

Valley of Frustration

It was a frustrating afternoon for the 1,000 fans let into The Valley as Doncaster Rovers secured a 3-1 victory over Charlton.

I went to have my flu jab this morning and my GP asked me, 'Are Charlton still crap?'  Well, on this performance, not quite good enough, but also a little unlucky.

Those of us watching remotely once again had to struggle with a failure of the audio.

On eight minutes Washington broke into the right of goal and his shot ran across the front of goal, Gilbey was just unable to connect to nudge it in.  On 11 minutes a low shot from Gilbey was tipped wide for a corner.

On 13 minutes Morgan put in a cross, Bonne was wide, but was offside anyway.

On 24 minutes Gomes put in a snap shot out of nowhere from distance, Amos was wrong footed and the visitors went 0-1 ahead against the run of play.

Just past the half hour, Amos spilled a Doncaster free kick, but Morgan came to the rescue.  Doncaster were playing with confidence and Amos had to make a good save on 40 minutes.   Pratley had to put in some good defensive work as the half came to a close.

Half time: Addicks 0, Vikings 1

There was a change of formation for Charlton at the break with three at the back.  The ball was given away sloppily in midfield and Barker scored an own goal to make it 0-2.   James was given a yellow card for a foul on Barker.

Washington drew a save and then Amos had to save smartly from Forster-Caskey.   On 60 minutes Williams replaced Baker.

John-Jules made it 0-3, it was way too easy.   The defence didn't have a great day.

After a Charlton corner Morgan kept the ball alive well and Washington scored with a header to give Charlton some hope.

The game became very open and end to end, but the skill level was not high from either side.  Doncaster brought on the 39-year old Coppinger.  In a last throw of the dice, Lapslie replaced Morgan on 85 minutes.

In the five minutes added on, Gilbey put in a strong shot from distance that hit the crossbar.

The Vikings could return north pleased with their raid.

Shell shocked supremo Lee Bowyer fears that complacency may have set in among his players, there is no competition for places: https://londonnewsonline.co.uk/charlton-boss-lee-bowyer-fears-complacency-may-have-set-in-after-doncaster-defeat/

The arrangements at the game were featured on the ITV evening news, including interviews with fans.

Four changes in line up

Following the midweek Carabao Cup fixture against West Ham United, Lee Bowyer has brought Connor Washington, Alex Gilbey, Jake Forster-Caskey and Albie Morgan back into the starting XI, whilst Charlie Barker makes his second league start for the club.

Ben Amos continues in goal whilst Barker, Deji Oshilaja, Darren Pratley and Ben Purrington make up the defence. Forster-Caskey will once again feature in the centre of midfield alongside Morgan and Gibley with Alfie Doughty operating on the right-hand side. Debut goal scorer Connor Washington will once again take position on the left, with Macauley Bonne looking to open his account for the season through the middle.

Josh Davison returns to the bench for the first time this season alongside fellow academy graduates Ashley Maynard-Brewer, George Lapslie and James Vennings. Erhun Oztumer, Jonny Williams and loanee Dylan Levitt make up the bench, after all three featured at the London Stadium in midweek.

Jason Pearce remains out and will be in the Valley Pass commentary box for today's game, while Chuks Aneke misses the game through illness.

Is this a way round transfer embargo?

VOTV editor Rick Everitt tweets from his Ramsgate fastness: 'Speculation only but one potential way round the transfer embargo would be for Thomas Sandgaard to provide source and sufficiency of funds to ESI1. He’d have to make sure they couldn’t run off with his money and that ESI2 couldn’t get it, obviously.'

The Rickster continues, 'Since he’s applied for the OADT he’s not in the same place as Farnell, who hadn’t applied when made a director of ESI. Unlikely EFL could or would disqualify him as a relevant person. Sequence of events might matter.'

'Note that the money doesn’t have to be spent on Charlton, it just has to be available if needed.'

It's an interesting idea, but I am not sure it is a runner.

Fans in stadium will make a difference

The presence of 1,000 Charlton fans in The Valley this afternoon will make a difference to the intensity of the game, says Doncaster Rovers boss Darren Moore: https://www.doncasterroversfc.co.uk/news/2020/september/moore-believes-fans-will-make-a-difference/

Moore said it will be a tough game for the visitors who have to improve their passing game and show greater fluidity.

Sky News had an item last night on the preparations for the game with extensive shots of The Valley and the reporter leaving through the turnstile.  Lee Bowyer was interviewed, apparently from his gaff.

Doncaster Rivers finished 9th in League One last season and Four Four Two forecast a 8th place this season.  They comment, 'Doncaster appeared capable of breaking into the promotion reckoning at times last season, only to be undone by inconsistency.'

Rovers were once known as the Butterscotch Men, but changed their name to The Vikings. The contributor of the fan file states: 'This season will be different to last because we won't have Kieran Sadler to bring one in from 20 yards in the absence of a real goalscorer up front.  It could be a long season.' He forecasts a top half finish without troubling the play offs.

The CAS Trust preview notes the contrast with the play off semi-final sixteen months ago: https://www.castrust.org/2020/09/doncaster-a-slightly-less-momentous-occasion/?utm_source=rss&utm_medium=rss&utm_campaign=doncaster-a-slightly-less-momentous-occasion

QPR bid for Bonne

PR have made a second bid for Macauley Bonne: https://talksport.com/football/efl/761254/championship-transfer-news-qpr-charlton-bid-bonne/ 

However, Charlton have made it clear he is not for sale.  

Sandgaard speaks out

Richard Cawley of the SLP reports:  'Just spoken to Thomas Sandgaard. He's made it clear still wants to buy Charlton - but also indicating not prepared to make deal with Lex Dominus.. Says it goes against his own "personal integrity".'

"I'm working with some of the smartest people to figure how how we make that happen without dealing with certain people."

Sandgaard saying he will be back in UK on Saturday for the Doncaster match."Right now I've probably got more stubborn than ever. I'm even more determined now."

Sandgaard: "What really matters to me now is we show the world that the fans want this deal done. That might actually have an impact - and obviously I'm hoping the EFL will take notice."

Richard Cawley comments: 'One of the key questions, to my mind, is whether the EFL would approve any takeover while this case is ongoing. [Probably not in my view]. If the answer is no, it would give us slightly more clarity on things.'

Thomas Sandgaard has tweeted: 'If you still want me, @SandgaardThomas, as the owner please change your profile picture to the Charlton logo to show your support.' This strikes me as a bit naff and gimmicky, but some well-respected fans have already done it.

Appeal allowed, injunction until November

The appeal has been allowed and an injunction granted until November.  The case will be heard on November 23rd.

This is no surprise to me given the evidence put forward and the interventions by the judges.   This is a dispute between two parties and the well-being of the club and its fans have little or no standing in legal terms.

I doubt whether the EFL will move to expel Charlton given the collapse of Macclesfield and problems at Southend, but the transfer embargo is likely to continue and there may be other sanctions.

Fanzine editor Rick Everitt has commented: 'The very widely circulated idea that this hearing doesn't matter because Thomas Sandgaard has a workaround to acquire Charlton will now be put to the test.'

Later he expressed some skepticism, stating: 'Pretty clear already there is no oven-ready workaround to buy Charlton and we’re still stuck in the same bind as a result of today’s court hearing. Marian Mihail is hopelessly out of his depth, which considering who appointed him is perhaps no surprise.

Everitt adds: 'Judge paid tribute to Lauren Kreamer's efforts in his judgement - I think he was acknowledging that she did the best she could against an experienced QC with very inadequate evidence from Marian Mihail and Panorama Magic. No reflection on her.'

Richard Cawley of the South London Press has tweeted: 'If this doesn't get resolved somehow - and very quickly - the player deals Charlton have lined up are gone. There were four ready to go, in terms of incomings. But that pales into insignificance if club goes into administration.'

Court states that Judge was right to conclude that if injunction refused LD will have lost opportunity to buy unique asset. Ownership brings intangible benefits that cannot be compensated in damages. Appeals turns on whether Panorama could be adequately compensated by damages. Rick Everitt comments, 'At first sight, judge's conclusion is counter-intuitive.'

LJ Lewison finds judge's view that it would lose opportunity to sell difficult to understand. Panorama has provided no evidence of impending sale or its terms. Nearest is saying that it is committed to finding a buyer, who would also have to pass EFL tests. "Panorama must live with its decision to remain silent".

Lewison: What impressed previous judge was evidence of Mihail about potential consequences for the club itself. [But my interpretation these are not material to the case].

ESI that has not shown it was not able to finance the club sustainably. Quite unclear how grant or refusal of injunction would affect EFL sanctions. Mihail's evidence depends on scenario that Elliott wins at trial and can't operate club. Should look at what happens if LD fails at trial. Difficult to see how Elliott can fall into relevant person category in that situation.

Hard to see how grant of injunction would put the club at further risk. Embargoes in place before the SPA signed and arose out of ESI, not LD. Mihail does not explain what continuation of embargo caused by injunction. We also know club has begun season.

No explanation of how embargoes would be lifted if the injunction is refused. Gallen's evidence is that would affect transfer windows, but no ability of club's ability to pay for any players if the injunction is lifted.

Gallen gave evidence that performance and income would improve but no evidence that this would happen. Unsafe to assume that loss of income translates pound for pound into share value.

Mihail does not give any evidence about how the issues could be resolved in the time between now and the trial in November. Would be a "bold move" to expel the club while Elliott's OADT its under appeal. Pearce supplied the wrong legal hypothesis.

Interim costs of £25k were granted.

Our day in court

Proceedings have started on time in the latest case involving Charlton.   Lauren Kreamer is representing Panorama Magic, with Paul Chaisty for the applicant, Lex Dominus, as before. Judges are in. Lord Justice Levison and Lord Justice Males.

Chaisty is arguing that Gallen evidence is not relevant, reports Rick Everitt. Respondent has produced no evidence whatsoever to explain state of negotiations with third party in any sale - the current state of play - says Chaisty.

Chaisty: "There is no evidence from the respondent as to what it might lose in terms of financial consideration if an injunction is granted until November. There is total silence in respect of that. No evidence from respondent to show what the position is going to be if an injunction is refused." (reports Richard Cawley)

No evidence as to what contract, price or date of completion or identity of third party, says Chaisty. Extremely important if respondent says irremediable damage if injunction granted. No evidence third party would disappear either. Mihail's evidence is speculation about what risk to the club is in injunction grated, but nothing to show what happens if it isn't - Chaisty (via Rickster)

No evidence put forward to show club has spoken to EFL about the position which might prevail in a range of scenarios. Doomsday scenario disproved by the fact that the club has started the season, says Chaisty. Court left with speculation about potential consequences but with no evidence to form a view as to likelihood.

LJ Lewison says Mihail sets out hypothesis that injunction is granted and LD succeed at trial then ties consequences to that scenario. So to determine whether damages are an adequate solution for Panorama is that injunction is granted by LD loses at trial.

LJ Lewison says that Judge Pearce's ruling may be based on the wrong hypothesis. Chaisty says that MM assumed that Elliott's disqualification is final ruling, which is false.

Elliott pursuing right of appeal with arbitration panel, says Chaisty. EFL disqualification based on misleading evidence provided by Elliott about the SPA. MM's evidence has no foundation because there is an appeal process.

Chaisty saying Paul Elliott pursuing an appeal to overturn the EFL decision on August 7 relating to the OADT ruling."If he succeeds at trial we know damages will not be an adequate remedy. Panorama is a company based in Abu Dhabi with no money."

LJ Males says more fundamental point is whether Mihail has given any evidence about what will happen if injunction granted and claim ultimately fails.

Chaisty saying Mihail's evidence that Elliott can no longer appeal the EFL verdict is "totally misconceived". Basically MM saying that SPA agreement alone wouldn't be enough to push through a deal for CAFC. Chaisty making point that individual can appeal OADT test.

Both judges have wanted Chaisty to focus on Mihail's witness statement, that's why we're on that subject now.

No evidence put forward that EFL embargo will change if the injunction refused, says Chaisty. Mihail suggests club will be expelled if Elliott owns club but cannot be a relevant person under EFL rules. Chaisty says this ignores commercial position for LD.

CAFC Facts and Stats comments, 'Mihail getting hammered again.'

Only statement re third party is that Nimer remains committed to finding a buyer. Court unable to find evidence from Mihail that ESI would suffer any harm from injunction, says Chaisty.

Steve Gallen's evidence criticised for making statements as if they are based on fact. Gallen not now a director of the club, Chaisty tells judges. Gallen explains reason for embargoes, and suggests that cause of them remaining is Elliott's disqualification.

LJ Lewison says not down to Elliott, underlying documents show that ESI has failed to satisfy source and sufficiency of funds. LD hasn't reached that stage with the EFL. LJ Lewison making clear that EFL embargo is down to ESI not passing the governing body's criteria.

Chaisty - source and sufficiency of funding for PE has not been dealt with yet. "Mr Gallen is confusing my client with ESI when he says they've had seven months to provide EFL."

Chaisty says difficult to understand. LD dependent on the support of Elliott. Chaisty says that Heller offered £100k for the shares of ESI at one point. Elliott offered guarantee of £50k, presumably against damages.

LJ Lewison suggets proceeds of sale could be frozen to protect LD's interest. Chaisty says hypothetical and we don't know what deals might be struck, including independently with Nimer, by which funds might be channeled.

Chaisty: over-emphasis on seriousness of consequences, not to Panorama but to the club, but no evidence as to the likelihood of those consequences coming about.

Chaisty notes that Pearce said history of the club is something he can take into account. No precedent for taking into account third party interests, he says. Not a public interest case, just parties interested in the outcome.

Pearce did not take account of £500k put in by Elliott in June, says Chaisty. Ruling outside reasonable disagreement, factors including fate of CAFC given unreasonable weight, failure to consider absence of evidence on key points from Mihail.

Kreamer takes the stand

Lauren Kreamer is now addressing the court.

She argues that appellant court should only interfere between two imperfect solutions when judge has exceeded generous ambit within which reasonable disagreement is possible. The focus is now on technical legal arguments so report will not go into them. Kreamer told to get on with her 'substantive submission'.

LJ Lewison asking whether damages would be adequate to Panorama Magic if Lex Dominus obtained an injunction but lost the case.

I'm getting the impression that the judges do not think the fate of the club is the issue in law here. LJ Lewison says that first risk MM described is of club not being able to start season. Second is points deduction. LK says they are continuing risks, not gone just because the season has started and the EFL has not imposed sanctions yet. LK saying those punishments (points deductions) can come "a considerable time" after the event.

Also discusses the likelihood of redundancies being made. Wants this court to take it into account.

LJ Males asks why court is forced to rely on "rather unreliable" evidence from journalists and not from the respondent. LJ Lewison asking why have to rely on press reports [Louis 'Unreliabke' Mendez] and social media for that information. LJ Lewison says doesn't say anywhere in evidence that "we've got a buyer, here are the terms of the deal." No evidence provided that a particular deal will be lost if an injunction is granted. [Judges apparently not too impressed with evidence base].

LJ Lewison: no challenge to evidence that £500k has been put into the club. LK says no evidence it come from PE. Could have put evidence before the court about the provenance of those sums and hasn't.

LJ Lewison says that Judge Pearce was relying on Mihail's hypothesis which is not what the court should be looking at. LK submits that Pearce does refer to the consequences of an injunction being granted, not simply the outcome of a later trial.

LK: significant liabilities in respect of which personal guarantees have been given by both the respondent and CAFC. So PM and club stands to lose a lot more if a willing buyer is lost. LJ Lewison didn't know about these liabilities. All new to him, he says. LJ Lewison says that he would have liked notice of these points. LK says that it shows CAFC as first guarantor and PM as second guarantor for these substantial amounts. LK: £1.7m or more due depending on net property valuation and deferred contingent payments on status.

LK: Chaisty said undue consideration was given to Charlton Athletic, but LK argues that court may have regard to other connected parties. Chaisty argues that CAFC is at heart of dispute but then says it should not be given such weight, she says. [His argument is that the case is about the dispute between the two litigating parties].

Nothing in Judge Pearce's ruling goes outside deciding between two imperfect outcomes. Not the role of the Court of Appeal to revisit that. Kreamer finishes her case, not up to Chaisty to respond if he wishes.

Chaisty responds

He says considerable reliance placed by LK on Gallen's evidence. Concerned about that if appeal is rejected. Gallen has sought to explain what Mihail was saying. PM shouldn't be allowed to rely on evidence that should have been before court below.

Chaisty: "For some reason or another her client has chosen to remain absolutely silent over where negotiations are with a third party." Says LK cant get over MM's silence about state of play of negotiations and actual position that it is in with third party. LD only produced press reports to request short term relief in respect of this appeal.

Chaisty says Elliott's evidence is clear that he has put £500,000 in. Net assets of £12m.' I haven't seen anywhere his statement has been challenged.' Unreasonable to do so now.

Court adjourns for lunch

LJ Levison saying court will adjourn and resume again at 2pm. "I hope by then we'll be in a position to give you an answer."

Proceedings after lunch will be the subject of a separate report.

Kreamer has put her case vigorously, but on the basis of interventions by the judges, I am not sure how well it stands up legally.