Charity Commission offer clarity on Southport takeover situation following Big Help investigation
The Charity Commission has released a statement after the new Southport owners detailed that their investigation into the Big Help Group's activities delayed the takeover.
The Charity Commission says it's not trying to prevent the Southport Football Club takeover as they offered clarity on their investigation, which has delayed the formal completion of David Cunningham and Kieran Malone’s ownership.
A Charity Commission spokesperson told Off The Park: “We have an ongoing statutory inquiry into Big Help Project to assess a number of concerns, including whether the charity has accurately accounted for its funds and assets in line with legal requirements and if conflicts of interest have been adequately managed.
“We have recently issued two legal orders, which are temporary, protective measures to ensure Big Help Project’s assets and / or funds are protected.
“This includes any proceeds from the sale of shares Big Help Group Ltd has held or still holds in Southport Football Club on trust for the charity.
“We have similarly previously issued an order preventing Big Help Group Ltd from disposing of any funds it holds on trust for Big Help Project without the prior consent of the Commission.
“The purpose of these orders is not to prevent the sale of Southport FC, but to ensure we can protect funds or assets that belong to the charity.”
It was confirmed on Monday that the ownership of the club had been transferred to the aforementioned businessmen following The Big Help Group and Peter Mitchell’s 18-month stewardship.
At the beginning of May, it was announced that the club had entered a period of exclusivity which would see Mitchell relinquish control, handing over to the two property developers.
However, in their statement to supporters, it was confirmed that the formal completion has been halted due to the ongoing investigation into the Big Help’s Group’s activities by the Charity Commission.
An inquiry into The Big Help Project was launched in December 2023, when the regulator first engaged with the charity after a significant increase in its income.
Further to that, the commission reported that they had identified concerns around trustee decision making, potential unauthorised trustee benefit and unmanaged conflicts of interest.
The Big Help Group had previously been issued a section 84 order under the Charities Act 2011.
The Commission further issued the group with a Section 76(3)(d) order, which allows the Commission to order that a person holding charity property or acting on behalf of a charity trustee cannot part with that property without theit approval, and a Section 76(3)(f) order, which allows the Commission to restrict the type of transactions that a charity can enter into, requiring Commission approval for certain actions.
Throughout their tenure at Southport, the Big Help Group reiterated that their profit making-arm of the business, The Big Help Project, was not associated or had no direct involvement with the running of the football club.
And in a statement to Off The Park, a Big Help Group (BHG) spokesperson said: “BHG can only reiterate once again that no charity funds have ever been expended on Southport or used to support the purchase of the club.
“That being said, it would be improper for us to comment further whilst we await the outcome of our appeal into the Charity Commission's actions to date.”