Carlisle United directors comment on takeover talks

The Blues hierarchy have issued their first public comment on the situation.

It follows the News & Star’s revelation earlier this month that American businessman Tom Piatak had met club and supporters’ trust CUOSC officials and that he and his family had attended Blues games in recent months.

CUOSC today confirmed talks had been ongoing and “potential investors would meet fans at a series of meetings next month.

Neither CUOSC nor the club have commented on the Piatak interest specifically but chief executive Nigel Clibbens confirmed that discussions were taking place.

“Yes, there is credible interest from people in taking over the club,” he said.

“Yes, the shareholders, board and CUOSC have met people and held discussions. These are continuing.

“Yes, some people have visited the club and also attended games.”

Carlisle United chief executive Nigel Clibbens (Image: Richard Parkes)

Clibbens, writing in a monthly update issued to supporters’ groups and published by the club today, stressed the importance of dealing with the Blues’ debt to Purepay Retail Limited before any takeover could progress.

He said United and Purepay were in dialogue via legal letters and that the club had submitted a new repayment proposal last week.

Clibbens said the Blues hoped the response to their proposal would be “favourable”.

But he also warned that any process regarding the future of the club would not be “quick” and also stressed that the Blues would not repeat past mistakes by sharing details of takeover discussions in public.

“I have seen the media and social media speculation. I understand the desire from fans who want know what is happening, and for the media to do its job in finding out and breaking news,” said the director.

“From a club point of view, sometimes having the detailed information in public can be counterproductive to what is best for the club.

“Lots of different people can be involved with different agendas and it is sensitive and delicate.

The News & Star recently revealed American businessman Tom Piatak and his family had attended United games recently, and was in talks with the club and supporters' trust (Image: Richard Parkes)

“It is a difficult balance for us to weigh sharing information with fans in these circumstances, with doing what is in the best interests of the club.

“I have consistently said that doing takeover deals in football in a public glare and media spotlight is not conducive to achieving a successful outcome. I still strongly believe that.

“As a point of principle, if takeover interest develops to reach a stage where information can be shared with fans, and it will make a deal more likely, it will be done so straight away.”

Clibbens went on to explain the importance of dealing with the club’s debt, stating that no investor would take on the club while there was “risk” and a lack of “clarity” concerning the situation.

He also said the EFL could not approve any deal while such uncertainty remained.

“The club’s legacy debts must be addressed as part of any takeover deal. This is usual in football and has been the case every time there has been a past change of ownership here,” said Clibbens.

“The message is clear from potential investors. They want to improve the future of the club and want to see their cash stay in the club to give it full benefit and make the most impact.

“From a shareholder and guarantor point of view, if the Purepay debt remains unresolved, they would still guarantee a debt and if they have sold shares in club, they are still liable for the debt but have lost all influence.

“Building on the positive news of a meeting reported by John Nixon in the June fans’ forum, Purepay is now engaging with the club via its lawyers, by letter.

“Last week we submitted a new proposal. It’s been prepared to be realistic and affordable and not jeopardise the club.

“Fans need to understand, looking from the point of view of a lender, those who lend money expect to get it back.

“There is no doubt that by not asking for all its money back on demand so far, or even over a short period [of say a couple of years] the club has not been faced with the serious implications that it could have had.

“Everyone should consider this unemotionally as a pure financial matter with no room for sentiment.

“We hope the response from Purepay to our proposal, will be favourable and it can play a part in making investment realistically achievable, but there are no guarantees.

“For all the reasons above, as far as the club is concerned, it has to be business as usual.”

Clibbens added that while United now have more “certainty” over sell-on income from former academy player James Trafford’s multi-million pound move from Manchester City to Burnley, those proceeds would not be “transformational” and would “not repay the Purepay debt alone or anytime soon.”

He added that the sum would come in over a period of time rather than instantly, and was “less than media reports” had suggested.

“Clearly because of the factors I have explained, looking generally at any future takeover; is not easy and the process is not quick [even setting aside EFL regulatory requirements],” Clibbens added.

The chief executive also said that “many potential investors” who have approached the club had wished to “wipe out” CUOSC with its 25.4 per cent shareholding and voting rights in United’s Holdings company.

“Some fans may argue - people with that plan should be treated with caution,” added Clibbens. CUOSC said this week that any investment plan on the table would need its members’ approval.

The News & Star has contacted Tom Piatak with a further invitation to comment on the situation. The businessman has not yet responded to our initial invitation earlier this month.