Morecambe supporters' trust meets with the Shrimps' prospective owner

Shrimps Trust representatives held a meeting with Sarbjot Johal, who has been heavily linked with a takeover of the club during the last month-and-a-half.

The 20-year-old, who has been described as ‘a wealthy investment mogul’ and a ‘tycoon’, has previously purchased equity in the club through one of his companies, Sarb Capital.

That was revealed in a statement from the club, outlining that Johal – who also owns drinks brands Vitanic Holdings Limited and Lovely Drinks Limited – would become the new owner, subject to passing the EFL’s owners and directors’ test.

However, his proposed acquisition of the club has attracted scrutiny in terms of how it could be funded, where the money was coming from and alleged links to crypto-based investment schemes.

The Trust had issued a statement of its own last week, 24 hours before Johal claimed he was ready to submit an application to the EFL with the intention of completing a proposed takeover.

Now, the fans’ group has published a further update with the club having been put up for sale by the owners, Bond Group Investments, in September 2022.

It said: “On Monday, representatives of the Shrimps Trust met with Sarbjot Johal and Saidi Kawooya from Sarb Capital, and Jason Whittingham of Bond Group regarding the proposed sale of Morecambe Football Club Limited.

“During the meeting, we were able to raise some of the concerns that have arisen over the last few weeks.

“Sarb Capital have told us that the accusations of any involvement in a crypto-based investment platform are wholly untrue, and that an investigation is ongoing into the website alongside legal action taken with the allegation of copyright infringement and defamation.

“Sarbjot was also keen to impress to us that the financial position and performance of the trading entities within the Sarb Capital group are vastly changed from the financial statements currently on public record at Companies House.

“Whilst no further evidence was provided in the meeting, in our discussions it was mutually understood that the evidence to support the financial viability of the takeover will be provided to the EFL, who will perform the appropriate due diligence through the EFL Owners and Directors test.

“We understand Sarb Capital have already invested an amount of equity into the club, and their intention would be to invest further equity through share issue.

“As part of the due diligence process, we would expect the EFL to clarify the source of the investment funds given that this information is not publicly evident from the financial results of Sarb Capital, its group and associated companies.

“Sarbjot told us of his ambitions for the club, subject to approval from the EFL, which are aspiring and would involve significant investment both on the pitch and off it.

“Sarbjot is also keen to maintain a close relationship with supporters, if his application is successful, and build on our community foundations.

“Our understanding is that the process is now with the EFL and the Trust look forward to a diligent and decisive response in due course.

“While we await further information after a constructive meeting, the Trust is in continued close dialogue with the Football Supporters’ Association.”