Football Dynasty-Chapter 13: The Covenant pt.2

As the conflict dragged on, Joe Smith held a press conference at his home in Prestbury. The topic was the threat from other board members to issue a "huge new block of shares" to block his path to becoming chairman.

Smith and his lawyer argued that the board's proposals were invalid and announced that his takeover group would propose their own resolutions at the next general meeting, calling on his allies to side with him.

Everyone expected the next general meeting to be a showdown between Joe Smith, the biggest shareholder, and Frank Johnson, the vice-chairman. But in a shocking twist, Johnson didn't even attend the meeting. What was even more surprising was the revelation that Johnson was planning to hand over all his shares.

It was at this moment that the sidelined ex-chairman, Albert Alexander, revealed his hand.

He was in no mood for peace offerings — the conflict had gone too far, dragging the media into the club's internal chaos.

In the meeting that Johnson failed to attend, he was stripped of his vice-chairmanship and replaced by Sydney Rose. The club also announced plans to launch legal proceedings to block the sale of Johnson's shares, arguing it violated the signed Deed of Covenant.

This time, the battle moved to the courtroom. Manchester City's solicitor, Frank Shepherd, was sent to London to prepare their case.

The club's legal team argued that the Deed of Covenant, signed on October 5, 1964, was still valid and enforceable.

Following a meeting between the lawyers representing both sides, Albert Alexander revealed the club's next explosive move — they planned to officially remove Frank Johnson from the board at the upcoming general meeting.

If the courts ruled that the covenant was still active, and Johnson was removed from the board at the next meeting, then Alexander would have a legal claim to Johnson's stake. That would leave him with a majority of the club's shares—rivaling the current Joe Smith.

Johnson wasn't ready to back down. With the court's involvement and time running out, he promised that the voting rights on his shares would not be exercised "on any resolution to remove any director from the board, reduce the number of directors, or appoint any further directors."

However, the court ruled that Johnson could still use his shares to block his own removal from the board and prevent the issuance of new shares — a decision that ensured further deadlock.

By this point, the boardroom turmoil was clearly affecting events on the pitch. That season, City suffered early exits from both the League Cup and the FA Cup. A league campaign that had started so strongly — with six wins and two draws in the first eight games — crumbled, ending with just one win in their final 19 matches.

Club solicitor Frank Shepherd warned that the trial could be up to 12 months away, deepening the sense of stagnation and frustration within the club.

As City became embroiled in an increasingly bitter takeover battle, a fresh face in the world of football was attracting headlines for all the right reasons. Several newspapers reported rumors of a mystery backer interested in investing in City.

After some digging, media soon found out that the mystery benefactor was a rising figure in the football world — someone who now offered to help break the deadlock.

His name was Peter J. Swales.

"Mr. Shepherd, may I know what you mean by this?" Eric's face darkened.

He was no pushover. Even though his tenure as chairman hadn't lasted as long as his father's, he was still a club legend.

At 19, he became the youngest member of the City 'A' team his father had set up. In fact, he was not only the captain but also held the course record and was in charge of a large social club.

"Eric, calm down. This isn't what you think," Peter quickly intervened, trying to prevent another conflict from spiraling out of control.

"I've already proposed this idea and even consulted Mr. Gordon about it," Peter continued, letting out a deep sigh. "Eric, gentlemen... let's be honest here — this club isn't doing well, is it?"

A heavy silence filled the room. It was undeniable. Legal bills were mounting alarmingly, and the club was on the brink. Yet, no one wanted to loosen their grip on the power they still held.

"We need to be bold. We need to take risks," Peter said, exhaling deeply before nodding to his personal secretary, who handed him a document concerning Richard's situation.

When the others read the bolded words — "single share" — that Richard would own, the room froze in stunned silence.

'A single share? You can't be serious. Even the smallest director holds at least ten shares!'

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But Peter didn't let them think; he needed to press them hard. "Gentlemen, I want to work together to lead this club in harmony. The power struggles are over. It's time to bring in fresh energy and new ideas." He walked over to Richard's seat and patted him on the shoulder. "And I believe in him."

Sure, the High Court battles were behind them, but the crushing legal fees and the club's disastrous performances on the pitch had left them all in despair. If things didn't change soon, they'd have no choice but to sell their shares to outsiders.

Even the covenant couldn't save them!

The bitter truth was that it had been their collective decision to back the previous manager — the one who had squandered vast sums on failed signings while selling off key talents like Asa Hartford, Gary Owen, and Peter Barnes.

One of the worst blunders was the record-breaking signing of Steve Daley, which shattered the British transfer fee record but delivered nothing on the pitch. City had started the season with high hopes, but now, with just one win in their last 19 games, the weight of their mistakes was unbearable.

"Now, gentlemen," Peter clapped his hands sharply, drawing everyone's attention. "It's time to make a decision — a big one. We either stand together and fight for this club, or we let it crumble right in front of us."

He let the silence hang in the air for a moment, the weight of his words sinking in.

"Now, give me your choice," he continued, his voice firm. "Are you with me to rebuild this club, or are you ready to watch it fall apart?"