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Important information from CUOSC View this email in your browser Statement from CUOSC February 11, 2016 THE LATEST PROPOSAL FOR LOCAL INVESTMENT IN CARLISLE UNITED Background In our most recent official statement issued on 6 January we indicated that an outline proposal for substantial local investment in the Club had been developed during December last year and discussed with the directors of the holding company. At that stage the intention was to put more detail into that proposal ahead of further dialogue with the Club. Further meetings to discuss these investment plans have now taken place and the CUOSC Board would like to bring members up to speed with where things currently stand. It might be helpful firstly though to reiterate the steps which led to where we are at present on the local investment front. It was about eighteen months ago that CUOSC reps were introduced to Andrew Lapping by John Nixon and Andrew Jenkins. A firm investment proposal was subsequently developed which was supported wholeheartedly by the CUOSC Board and the membership but, as we know, those plans did not come to fruition. Nevertheless, the Club made it clear some months later that it was still seeking local investment. In early November 2015 CUOSC was presented with a couple of local investment suggestions by the Club. After consideration the CUOSC Board felt that those ideas did not go far enough towards achieving the required long term financial security and stability for the Club. Consequently, it was agreed by the Club that CUOSC would pursue alternative and more financially beneficial investment ideas prior to further discussion taking place. The Current Investment Proposal Pursuing other ideas led to the investment proposal which is presently on the table, amongst the aims of which are to :- . put CUFC firmly in the ownership of the local community ( i.e. fans and businesses ) via an investor consortium model . raise £2m of new investment through the business community and CUOSC . ensure the future financial stability and solvency of our football club . protect the asset of the football ground for future generations of fans . make CUFC an attractive concern thereby providing a platform for future investment . set out and achieve ambitious targets relating to investment and revenue generation . build upon the momentum of current success on the playing side to create and maintain success across the Club The proposal envisages that the investor consortium will be made up of CUOSC and around 12 - 15 major business investors. The strategy is for these key players in the local business world to raise £1.5m and for CUOSC to raise £0.5m from its members, other fans and smaller businesses. This arrangement would result in an expected shareholding of 25% CUOSC, 75% business community depending on the amounts actually raised by the respective parties. The Club's Response to the Proposal Following further meetings with the Club it has become clear that the CUFC Holdings directors do not wish to pursue the current proposal. This is particularly disappointing for the CUOSC Board as the proposal :- . was developed to deliver on the agreement with the Club that CUOSC would seek to identify and present fresh investment ideas . would result in a financial contribution to the Club roughly ten times greater than the Club's November '15 proposals . would eliminate the Club's over-reliance on the generous financial contributions from Andrew Jenkins and relieve him of that unacceptable burden which was stated by the Holdings directors to be one of their major aims when they first raised the Lapping possibility with us . is felt to be very much in the best interests of the community's football club and in keeping with the on pitch improvement this season and the team manager's ambitions for further progress What Next? The CUOSC Board and the business investment group have indicated to the Club that their offer of investment will remain in place should there be a change of heart in the near or mid-term future. We hope that the consortium's plans will be welcomed and supported by CUOSC members and the wider fan base. Those involved in the consortium are genuine fans of the Club and, like all fans, want to see it progress and to be in a better financial place for the long term. As it isn't realistic to provide too much detail in a statement such as this, the CUOSC Board wants to arrange a members' meeting to take place in the next couple of weeks or so to provide the opportunity to learn more about the present proposal and for us to receive feedback on it. We will be joined at the meeting by Robin Brown and Graham Mossop who are leading on this initiative on behalf of the business investors alongside the CUOSC Board. We will be in touch with members in the next few days regarding the venue, date and time of this meeting. Although the focus will no doubt be on the local investment possibilities, other CUOSC/CUFC matters will also be on the agenda. In the meantime, here's hoping for 3 points at Newport on Saturday as we seek a return to League 1 next season, via the play-offs, or otherwise! Contact details: Email info@cuosc.org.uk Phone 07999 737390 Web: www.cuosc.org.uk Facebook www.facebook.com/Cuosc2015 Twitter @cuosc |