Gregg to sue over Everton ownership

Paul Gregg, the Everton director, last night threatened to sue Bill Kenwright because of his refusal to step down as the club's chairman. Gregg expressed his frustration over what he feels is Kenwright's unwillingness to accept his plans to dissolve the company True Blue Holdings, in which they are both directors, and invest £15m in the debt-ridden club.

Paul Gregg, the Everton director, last night threatened to sue Bill Kenwright because of his refusal to step down as the club's chairman. Gregg expressed his frustration over what he feels is Kenwright's unwillingness to accept his plans to dissolve the company True Blue Holdings, in which they are both directors, and invest £15m in the debt-ridden club.

"I suppose legal action is a consideration," Gregg said. "I don't want to walk away. I want to try and make sure it has a long-term future."

Kenwright was due to make an announcement at 5pm over the future ownership of Everton but has still not received the guarantees he needs over where Gregg's backing is coming from. So far he has only been given a letter from a Merseyside-based solicitor saying that "up to £15m would be invested". But it did not say from whom. "If this was the proof, any bank would laugh at it," one source said.

Kenwright, although considering whether he should resign, is also believed to be close to securing his own funds.

Yesterday, Gregg claimed he had gained the support of John Suenson-Taylor, Lord Grantchester. "One of our partners has already been announced and it's quite obvious we can supply the funds," Gregg said. "Lord Grantchester is the partner. He's a true Blue - you can't have any better Blue than Lord Grantchester."

His involvement is a severe blow to Kenwright. Lord Grantchester is a former director and was the last member of the Moores family on the board before he resigned in 2000.Kenwright has always held a deep respect for the Moores family and will be upset that he has apparently lost that support.