The demise of Durham Ice Rink can be traced back to an explosive off-season which took place during 1995 when it was announced that the Wasps had been sold, and were to move to Newcastle as part of Sir John Hall’s fledgling ‘Sporting Club’ empire under the banner of Newcastle United.

We take a look back to the following article was written by award winning journalist Tim Rich, and was published in the Sunderland Echo on Wednesday March 13th 1996 examining the controversy around the details of the sale.

LEGAL NOTE: We would like to point out that in the end, no charges were brought against those involved, and the fraud investigation was ultimately dropped by Durham Police some weeks later. This article appears on this site for the sole purpose of explaining the story of the sale of the Durham Wasps and the controversy surrounding it for historical purposes. The story is reproduced with the permission of the Sunderland Echo. Many thanks to them.

Did Sir John Hall buy the proudest name in British Ice Hockey or was he tricked into purchasing nothing more than a few scraps of worthless paper? In a week in which Durham Wasps faced investigation after a shameful brawl at Crowtree, the Echo’s TIM RICH, who broke the story of the club’s bankruptcy tells the story of a dubious deal.

THE KEY PLAYERS:
Douglas Hall: Newcastle Utd Director
Sir John Hall: Newcastle Utd Chairman
Paul Smith: Durham Wasps Manager
Durham Ice Rink: The Wasps’ Former Home.

With a name like Durham Wasps, it seems appropriate that their tale should end with a sting. On the surface, the deal transferring ownership of the club from general manager Paul Smith and father Tom to Newcastle United Chairman Sir John Hall was straightforward. Tom Smith’s grandfather, J.F.J. ‘Icy’ Smith, founded the club in 1946 and the Smith family led it to the summit of the sport. But the sale to Newcastle was based on documents of doubtful origin. Far from owning the club, Tom and Paul may have simply been employees of two holding companies which ran the team - first Incredo, which went bankrupt in 1994, then Durham Wasps Enterprises, which still runs the Riverside Rink.

Last October, the Smiths were banned for two years by the British Ice Hockey Association and no longer work for Newcastle United. The ban was not because the BIHA doubted their right to sell the club, but because of the part they played in the bankruptcy of Incredo, which went into liquidation owing half a million pounds in 1994. The Smiths were able to convince the BIHA that the owners of the Riverside Rink merely operated the Wasps through a licensing agreement with the original owners - themselves. The BIHA allowed the sale of the Durham Wasps to a Newcastle United paper company, Photofriend - set up by Sir John Hall’s son, Douglas, and Newcastle United Vice-Chairman Freddie Shepherd - because of three documents.

They were:
• The title deeds founding Durham Wasps, signed by Icy Smith and son, John, on January 4th 1946
• A document, dated August 15th 1979, transferring ownership to Tom Smith;
• A letter, dated February 27th 1991, from Stephen Best, chairman of Incredo, to Tom Smith accepting Incredo ran the club under licence.

THE TITLE DEEDS:
These were the key to the sale. Despite pressure, Newcastle United solicitors Winskell and Winskell consistently refused to release them. Eventually, photocopies were given to Incredo’s liquidators, Sunderland accountants Jennings Johnson, and the BIHA.

What surprised the BIHA were the appearance of the deeds - they were written on four sheets of ledger paper. A ledger with similar ruled paper was found. Several sheets had been torn out. Because poor quality photocopies had been released by Newcastle United, it was impossible to determine the age of the paper. Forensic tests on the paper and the ink could verify its age. However, the handwriting could be analysed. The photocopy was sent to Patricia Russell, a forensic scientist at the Mountjoy Research Centre, Durham.

Ms Russell was shown five genuine samples of J.F.J. ‘Icy’ Smith’s signature from 1929 to 1953. She said in a statement: “There is no evidence that Mr. Smith completed the signature in his name appearing on the document dated 4th January 1946. Receipt of the original questioned document may cause this opinion to be revised.”

But the signatures were not the only discrepancy. The title deeds contained other apparent errors, apart from containing modern business slang such as “set-up costs”. The deeds were witnessed by a Sydney Gardner of 3 Wrights Terrace, Shiney Row. Mr Gardner’s signature does not appear on the document.
There is no such place as Wrights Terrace, although there is a Wright Terrace, but Mr. Gardner does not seem to have been living there on January 4th 1946. It was occupied by Thomas and John Bloomfield, who appear on the 1946 electoral roll. Wright Terrace is a council property and Sunderland Council’s housing department confirmed Mr Gardner took over the tenancy in April 1947, 16 months after the deeds were allegedly signed.
John Smith’s address is given as Igloo House, Ice Rink, Durham City. Igloo House is an extension to the Riverside Rink where Tom Smith still lives. Plans for Igloo House were submitted in October, 1946, ten months after the dates on the deeds. It was not built until 1947. In 1946, John Smith was still living in Bishop’s Mill, Walkergate.

THE 1979 LETTER:
In 1979, before ice hockey became big business, Charlie Brown was a member of Durham Wasps Committee. His name appears as a witness on a document transferring ownership of the club to Tom Smith on August 15th 1979. Below his signature, the date is written, apparently in Mr Brown’s hand. Mr Brown, who lives in Pity Me, Durham City, claims he provided a sample of his signature to Paul Smith, and brother Damian, who plays for the Wasps.

In a sworn statement, Mr. Brown said: “In or about December 1994 - January 1995, I was approached by Mr. Paul Smith and Mr. Damian Smith and asked to sign an A4 blank piece of paper. They told me the signature was to record that in 1979 I was a committee member of Durham Wasps and that the team was owned by the rink. I did not see any other part of the document. I did not see the other two pages which now form part of the three page document. I did not date the signature and the date is not in my writing.”

THE STEPHEN BEST LETTER:
Stephen Best was chairman of Incredo until just before the company went bankrupt. His letter to Tom Smith, dated February 27th 1991, emphasised that Incredo only operated Durham Wasps under licence, and the owners were the Smiths.

It seemed to back up the Smith’s argument that they had always owned the club and it is the only document found after the company’s collapse that mentioned a licence. However, on February 27th 1991, Stephen Best had no power to sign anything. He only joined the company as a director four months later, and Incredo only began trading in June that year. Incredo’s company secretary Anthony Budd says he doubts Mr. Best wrote the letter and has never seen any of the three documents the Smiths handed over to Newcastle United. Referring to the letter from Stephen Best, Mr Budd said: “The content suggests a detailed knowledge of the Smith family-player-club relationship. It is my belief that Best did not have such a detailed grasp of the complexities and relationships at that time.”

THE CONSEQUENCES:
The credibility of the documents could prove an enormous embarrassment for Sir John Hall who might feel that owning an ice hockey club is more trouble than it’s worth.

His failure to gain planning permission for a stadium means the Wasps may be unable to join the new Superleague next season. It is demanding every club should have a 2,000 seat arena. Should there be fraud involved in the sale documents, it is unlikely that the Wasps will be allowed to finish the current season. The British Ice Hockey Association, which allowed the sale, may itself be open to civil action from the owners of the Riverside Rink who could claim their Premier League title was, in effect, stolen from them. By contrast, Sir John may feel that football is a very simple game.

©1996 Sunderland Echo. Transcripted from original article with permission.