Tom Piatak today pledged to put enough investment into Carlisle United to turn the club into a “regional powerhouse”.
The American businessman, whose family have taken over the Blues, today spoke in more detail about their plans and vision.
The Piataks, via their Castle Sports Group company, have already paid £1.35m for new shares in CUFC Holdings in order to take 90 per cent control, with fans’ trust CUOSC’s stake reduced to ten per cent.
But logistics entrepreneur Piatak said that is just the beginning in terms of their outlay which is intended to transform United on and off the pitch.
“In terms of getting the deal done, we put what’s required – by the EFL and going through that process – in to make sure we could make the transaction happen,” he said.
“Everybody that I’ve talked to knows I think we have greater plans than just that.
“We want to build this up, and we know what’s necessary to build Carlisle into a kind of a regional powerhouse.
“So we’re committed to more than that. I’ve told everybody – that is the minimum you will see. It’s there, it’s locked and cocked, it’s ready to go.”
The initial cash injection - and future investment
Documents filed at Companies House confirm that some 1,222,320 new shares were created in CUFC Holdings, at a value of £1.104 each, as part of the transaction which saw the Piataks take control from United’s previous owners, while the trust’s voting share was reduced from 25.4 per cent to ten per cent.
Future investment is also set to be in the form of equity, but United say CUOSC’s voting stake of ten per cent will remain.
On the initial £1.35m injection, chief executive Nigel Clibbens said: “It brings [that amount] into CUFC Holdings, which is lent to 1921 [United’s operational company], so it’s sat in the bank account of 1921.
“That’s public knowledge – it works with the cash balances we’ve already got to give the short-term funding to meet the business plan that was submitted to the EFL. That then gets tested as part of the deal. That takes care of future funding for the short term.
“In time there will probably be more share issues of a similar vein, in Holdings. It’s a company loan, it’s interest free, so doesn’t impact the P&L [profit and loss] and it’s all in the club which is the key.”
Piatak, meanwhile, said they would be investing more than has ever gone in to the club.
“On the player budget, we sat down with the management team, with Paul [Simpson], and said what is needed? That was the question – not ‘here’s what we’re going to put in’. What is needed to be successful in League One this year and next year? Because that’s where we want to be.
“That’s the investment that has gone in on that aspect. That is going to be hitting the operating and income statement and going through.
“On the capital side, that’s a completely different animal. Yes, we set aside funds for the capital, but there’s more available there. That’s just building the infrastructure, and that sits on the balance sheet.
“That should be a good economic investment for the club to do that and we’re willing to do that. We will be moving on multiple fronts rather quickly.”
Vision, ambitions and training ground talks
Piatak said their off-field vision at United can run “parallel” to their investment on the playing side.
“We’re putting together the vision and plan, who’s accountable within the organisation to execute on that and we want everybody moving on the same direction on multiple fronts, on getting as much done as quickly as we can,” he added.
“But I’d also temper that with…it’s going to take time. We’ve committed to building a training facility and we want it to be a phenomenal training facility.
“That doesn’t happen overnight. Know where we’re headed but temper the expectations on how quickly we can get there – but we’re committed to getting there.”
Five days into their tenure as owners – a spell which included a huge welcome for the family from fans at Brunton Park on Saturday – Piatak set out what he would regard as success at Carlisle.
“Short term, survive League One, safety in League One this year. That to me would be success,” he said.
“At the same time I would love to see the attendance figures maintain or even increase. That’s something we’re going to focus on – how can we increase that.
“I hope people understand, when you have what we had on Saturday, that affects what happens on the pitch, the players.
“We’ve all played sports, we know how that can be. The attendance increasing and surviving is one short-term [goal]. We’re also going to do some other things in the fan zone.
“Medium term we want to start moving on the training facilities, but another short term [plan] is we want to have another alternate training facility because the practice pitch out here is not always [usable]. I don’t want Paul and the club always having to go up to Gretna.
“There has to be something in town where we can have a reciprocal deal, where we’re taking care of the pitch or improving it but we get to use it Monday to Friday as needed and it works for both parties
“ Longer term it’s identifying the acreage necessary to build the necessary training [ground]. We’ve got a great catchment area, we want the parents and young ones in the academy and locally to say, ‘My goodness, that’s where we want to stay, we don’t want to go anywhere else, Carlisle has the facilities necessary’.
“So we can start building, the academy gets strengthened, we can build our own players…that’s what’s necessary I think for a club like Carlisle and our location to really succeed and thrive in the long term.”
Piatak said there have been “initial” discussions about the training ground vision – including potential sites – with Jane Meeks, the director for economic development at Cumberland Council.
He said further discussions would focus on “future economic development here in Carlisle, about how can we partner and build out some shared green space, if they can provide some land, and we can do something that’s good for both.
“We haven’t sat down with Mark [Fryer, the council leader] yet. With the business community, we’re scheduling meetings and I want to schedule more.
“So many people know about available locations and can help us out. I couldn’t do anything before the change of control [at United] because of [under EFL rules], you can’t influence those things, but now it’s going to be full steam ahead.”
The debt
Piatak had already told the News & Star that Castle Sports Group have bought the club’s £2.6m debt from Purepay Retail Limited in order to get the takeover across the line.
Asked how that could now be dealt with going forward, the Jacksonville businessman added: “I’m not an accountant so I’m going to have to defer to them on that. My commitment is it will not be a burden on the club in any shape or form.
“There will be no interest payments, the club can move freely as if it’s not there.
“Whether that will be a conversion to equity shares, if that’s the most efficient way…but I don’t want to see it disposed of and the club has a huge tax bill because it’s converted to forgiveness of revenue or something of that nature.
“It’s been resolved. I certainly think [Purepay] could and should have done more to help us resolve that but when I look at the bigger picture, I was not going to let it hold up the transaction.
“Our plans are bigger than just that piece of the debt. But we’re going to do it in the most tax-efficient manner we can, not hurt the club, and I’ll leave that to the accountants to figure that one out.”
On and off-field plans
Other on-field developments initially include an investment in StatsBomb, the top data package to help United's recruitment drive, while a data-driven recruitment analyst is also set to be brought in.
The family also want to improve Brunton Park's facilities, with the East Stand identified as a key part of the ground for change, Piatak saying they want to "completely finish" the stand to make the most of its potential, including classrooms and hospitality boxes.
They also want to make improvements to the Warwick Road to improve its acoustics as well as facilities including the toilets, while improvements to United's dressing room areas are also planned - and improvements to the Waterworks End also form a long-term aim.
The trust
Piatak, meanwhile, pledged that CUOSC would be embraced closely by the new regime despite the trust’s reduction in its voting share in CUFC Holdings.
“It’s one of the criteria of the club we chose. We wanted a club that had the fans’ support and part of the ownership. It was important to us,” he said.
“We’re going to be working with them very closely, as we have been – Matt Spooner the chairman, we have a great relationship with and we want to continue to build upon that.
“We want their input and assistance. We appreciated their help in getting some of the quick wins done, and we want to have a close relationship with them as we build towards the future.”
Running United - and the family's intentions
Piatak also responded to the question of how he and his family will run the Blues as well as oversee their businesses in the USA.
He expressed confidence that the family can spend all the time necessary on running and shaping United.
Members of the family, after meeting the media at Brunton Park this morning, were preparing to look at properties in the Carlisle area.
“The last time we were here, Patty and I were away from Jacksonville for 45 days. We were in Carlisle, then we went on a safari that we had planned for two years, then back to Carlisle,” said Piatak.
“Living out of a suitcase became a little bit of a struggle but it was kind of a test. When we saw back down in Jacksonville they said, ‘Tom, everything ran smoothly – with the processes, everything’s in place to manage it. Yeah, we would have loved to talk to you once or twice, maybe a Zoom call once every two weeks would have helped, but everything moved flawlessly.’
“And we’ve built it that way so it could do that. So we’re very pleased with the way that happened and it gave us confidence we could be here more and more.”
Piatak reiterated his pledge that the family were not in it to make personal profit, and were set on the “fulfilling” experience of helping United grow.
“The more we’ve been spending time in Carlisle – we’ve enjoyed the community, the people, talking to them – it’s made us even more committed to it,” he said.
“This is a challenge, there’s no doubt it’s a challenge. It’s requiring quite a bit of travel – our family likes travel so that’s not an issue.
“To see where this club is now and where it’s going to be ten years from now, that is going to be a very fulfilling experience for us.
“To see the community experience that change and embrace that change…we’re going to be over here and we want to see that come full circle.
“When I spoke at the supporters’ [trust] meeting in September, I said financial profitability was the last priority on the list on the presentation. Stability was No1, improving the squad was there…if we can see the fan experience in this community blossom, that’s success to us.”
The welcome from supporters
Piatak, meanwhile, said the extraordinary reception he and his family received at Brunton Park on Saturday had simply reinforced their ambition to make a big success of their time at United.
“It was unbelievable. It was beyond our expectations,” he said.
“We came early, we arrived at the stadium around 11am because we wanted to be in the fan zone, and we were probably out there maybe close to an hour and a half, two hours, talking to the fans – that’s what we all love.
“Seeing some of the changes, some of the quick wins we’ve tried to put in place so people understand the direction that we’re going to head, was fantastic.
“It wasn’t everything but there were certainly some different changes and a lot of the fans came up to us and said, ‘Wow, this is special’.
“Seeing the younger generation out there, just loving it, enjoying it, we took as many pictures as we could with them…that was unbelievable, then we went into the hospitality suites. That was very quick, but important.
“By the time we hit the tunnel and Nigel said ‘Get out there, go, go, go’…that was surreal. As a family we talked about it that night – wow, we did not expect that.
“I hope the fans understand, we were out there saying thank you to all of you. I think they were saying thank you to us, but this goes both ways. We were very gracious – what a warm reception.
“It certainly motivates us. We have a plan, we have a vision what we want to do, and that certainly confirmed we’re doing this for the right reason.
“If we can see that kind of support here at Brunton Park on a consistent basis it’s going to be great. It’s great for the community. To see the young generation out there with the older generation, everybody cheering – it almost becoming more of an experience than just the actual match…get there early, enjoy it, that’s what makes it fun, and it should be fun.
“It confirmed everything we thought as we made the decision on Carlisle.”
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