Carlisle United have gone another month without any progress in their debt situation – which will cost them more than £100,000 in interest across 2022/23.
The Blues’ latest official update confirms that there have still been no new discussions with lenders Purepay Retail Limited.
It means a wait of more than four months since United’s owners tabled repayment proposals to the company.
And interest is continuing to grow on the seven-figure debt – at a higher rate than before.
“A new proposal was made in late May. No new discussions have taken place since the last [club] report in early August,” United’s latest update says.
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“Interest continues to accrue [not paid] on the Purepay loan. This is at an increased rate given the rising interest rate and compounding interest.
“The charge in 22/23 is expected to [be] in excess of £100k.”
Dealing with the debt has been described by club bosses as “absolutely vital” to opening the door to potential future investment or takeover.
Co-owner John Nixon said in June that they had written to Purepay with a repayment proposal.
He said Purepay’s John Jackson, who is also a CUFC Holdings director, had told the club they were in the process of calculating the balance of interest for this year.
Nixon said United, once they received that figure, would be seeking a written agreement over their proposed terms.
But the situation appears to have moved little further since the summer.
The News & Star has invited John Jackson and Purepay to comment.
The debt situation - a legacy of United's loans from Edinburgh Woollen Mill from 2017 - remains the major unresolved issue at Brunton Park, at a time club bosses stress United are in a “sound financial position day-to-day.”
The latest club update, from chief executive Nigel Clibbens, adds: “Our trade creditors position remains good with the liabilities being low. All our PAYE and VAT liabilities continue to be paid up in full and on time. Income is growing but so are costs.”
United have reported significant ticket income as fans back Paul Simpson’s team.
The Blues say season ticket income is up 18 per cent on last season and matchday ticket income up 40 per cent after their first five home league games.
This reflects increased crowds and a ticket price increase.
The relevant attendance figures are the best for a decade, Clibbens said. “This is critically important in funding [our] committed increased player costs spending in 2022/23.
“It is the first time for over a decade that at all of the first five League Two games, the total gate has been over 5,000 each match.
“This is fantastic support.”
Retail income is also up but United added that “we are also facing significant business cost increases [like energy, wage cost increase, supply cost inflation, interest cost increases].”
And they said the increase in football spending will take such outlays to their highest “for a number of years”
“As a result, the overall budgeted loss in 2022/23 is significant.”
Auditing on the 2020/21 accounts is almost complete and will show a small profit, the Blues added.
The full club update and the latest Carlisle United Supporters' Groups (CUSG) minutes can be read HERE
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