Press Release Article Thursday 08th April 2004: Supporters Trust set record straight on shares issue
Following recent press coverage and comments by former CCUIST chair Alan
Steel the CCUIST board wishes to set the record straight in what it
perceives to be the main issues with regard to the proposal to waive its
option on ownership of an additional 20% of the shares in CUFC Holdings. The
CCUIST board believes that the trust needs to be realistic and honest about
what can potentially be achieved by the supporters in order to get the best
possible outcomes and at the same time support John Courtenay in a bid to
raise much needed income for the club.
Under its agreement with John Courtenay the trust agreed to buy shares in
three parts. A first issue of 20% of the shares costing £400,000 to be paid
for in 3 years was agreed a little over a year ago. On completion of this
purchase it had a first option on a second 20% of the shares at the same
price (£400,000) with a further three years to pay for these and lastly an
option on a last 9% of shares when the purchase of the second 20% was
complete at a price to be negotiated.
CCUIST has so far raised around £135,000 leaving it a further £665,000 to
raise in just under 5 years in order to pay for the first and second 20%
blocks. An additional, unknown sum would then have to be raised in order to
complete the purchase of the last 9% option. Even if the trust was able to
do this, in order to purchase a controlling interest they would still need
to agree and finance the purchase of at least a further 2% of shares in the
club at a price to be negotiated and obviously run and fund the club on an
on going basis after this.
All current CCUIST board members with the exception of Alan Steel believe
that raising funds on this scale will be virtually impossible and the trust
board believe that this view is shared by the majority of fans. They believe
that the role of the trust should therefore be to establish an effective
shareholding in the holding company that can be built on and to maintain the
role of the fans as an integral part of the clubs main board - they do not
share the view that owning 49% of the shares is a must in order for its
voice to be maintained and heard in the future.
The current reality is that the club needs to raise money and raise money
now and there are people and businesses that are prepared to invest in
shares in the club. The easiest way to facilitate this is for the trust to
relinquish its option on the second 20% block of shares and this is the gist
of the proposal that has been put to its members for approval at a Special
General Meeting on Sunday 18th April 2004. Anyone investing in these shares
has the right to keep any voting right attached to them or they can choose
to give their proxy to the trust.
Kate Rowley, newly elected CCUIST chair comments: "At the end of the day
owning 49% of the shares leaves the Trust in no better position than owning
the 20% we now have, by hanging onto the 2nd 20% we are effectively blocking
immediate investment in the club. We have the best interests of the club at
heart and the trust board believe that the short and long term future of the
club should take priority over the unrealistic aim of a club that could be
owned by the fans".
Chairman John Courtenay has agreed to support the trust in refocusing its
objective by agreeing that the trust should keep its option on the further
9% of shares included in the original agreement and this will be formalised
should the proposal be adopted on Sunday 18th.
Kate added: "John Courtenay and the trust board strongly believe that CCUIST
should have a major role to play in the future of the club and by fulfilling
its obligations to pay for the initial 20% shareholding and subsequently
adding to this the voice of the members will be a strong one for years to
come. We would urge members, fans and local businesses to refocus on the
importance of being a part the trust by joining with us and making regular
contributions or one off donations".
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