Press Release Article

Thursday 10th February 2005: Share negotiations

Statement on behalf of the United Trust

Representatives of the Carlisle United Trust met with Mr Story and two of his CUFC Board colleagues recently. Lawyers for both sides attended the meeting. At the end of that meeting it was agreed that, other than a short statement, no comment would be made on the meeting by either party.

Following the statement in the local press by Mr Story, we would confirm that we are taking legal advice from leading Counsel in London, in view of all the circumstances and the issues requiring consideration this has taken some time. The lawyers for both parties have been in frequent communication and all parties are fully aware of this position.

The Trust was established to maximize a shareholding in CUFC Holdings Limited and to achieve representation on the Club Board so that the Club would be protected from exploitation and would be run for the benefit of this and every subsequent generation of Cumbrians. An agreement was signed in 2003 which secures these objectives.

Several fundamental aspects of that agreement have recently been publicly brought into question by the Club – not least of which were the clauses in the agreement protecting the people of Cumbria from having their shareholding reduced at any time in the future for any reason, and preventing its takeover by anyone unacceptable to the supporters of Carlisle United.

Amongst the ‘minor points’ referred to in Mr Story’s statement are:-

A claim for the right to reduce to negligible levels the 40% shareholding for which many hundreds of Carlisle United supporters have amassed £800,000

A claim for the right to remove any say for supporters as to who might become owner of the Club in the future.

The statutory duties of the officers of the Trust prevent its funds being used whilst these matters remain unresolved.

We anticipate that the legal situation will be reconciled in the very near future so that the Trust can concentrate all of its efforts into raising even more funds to take Carlisle United up through the Divisions of the Football League