Carlisle United Football Club is dying

[_Stefan_Kuntz]

Even if we ignore the debt to Pioneer (and why would we do that) the club, 1921, has debt in excess of £2.7 million. This debt is to Phillip Day's Purepay. He wants all of that money back immediately. Nobody can dispute on either moral or legal grounds the right of Purepay to demand that money back forthwith.

It is clear that although 1921 made significant profits (purely from transfers) in the 2 consecutive years to 30th June 2021 the club has used much of that cash and credible people are stating that 1921 now has less than £250,000 cash. Typically 1921 makes annual losses much greater than £250,000.

None of Cumbria's biggest / best businesses will provide sponsorship / advertising revenue to the club nor will they provide other benefits such as free or discounted goods / services. This is because they have no confidence in the key Holdings board members and thus will not support this regime.

How can this debt to Purepay be paid and the club move forward? Well, it cannot be paid from normal trading revenue, it will not be paid by Andrew Jenkins and it is nonsense to rely on Henderson / Branthwaite being transferred. 1921 may well cease to exist before these transfers occur if they ever occur in the best value moment of the respective careers of these players.

No prospective new owner will want to pay off the debt because it represents the accumulation of the follies of the current ownership. Would you want to pay off that debt and have The Three walk away laughing?

The real value of all the club's assets minus its liabilities is a negative figure. Its annual income minus its expenditure is a substantial loss.

So, PD's Purepay wants paying immediately, the club cannot pay now or probably ever and meanwhile the club has very weak streams of revenue such that it always makes a substantial annual loss and has the constantly heavy financial burden of keeping Brunton Park up to the standards imposed by the EFL.

Carlisle United Football Club is dying.

[Blackdogblue]

Sad when you look at this way, you only need to look south to see what happened to Bury & Macclesfield…

[howoldboy]

With AJ and his "gentlemen" chums hanging around in the Boardroom the club has minimal prospect of future success unless, of course, AJ returns to historic ways and starts subsidising the club to the extent of £0.5m a year again.

Against that background, the news that PD finally seems to be applying some pressure for repayment is probably our best chance of achieving a change of regime.

Although there may be pain in the short term (and perhaps even Administration and the demise of 1921 Ltd) ultimately it could lead to a rebirth, with new ownership and the return of some hope for the future.

I am confident new owners/investors will quickly appear on the scene once the debt to PD is resolved.

Come on PD...keep ratcheting the pressure.

[6EQUJ5]

Andrew Jenkins ceased putting money into the club prior to 2017. He will never put any more in. If in 2017 he had been in a position to put money in then the club would have had no need of the initial £450,000 to get to the end of that season (2016 / 2017) that PD's Edinburgh Wool Limited (of EWM Group) did put in.

The reality of the Andrew Jenkins positions is completely the opposite of him putting money in. He (Pioneer) wants money out that is indisputably owed by 1921. The position of the club and its prospects are as set out in the first post of this thread.

[howoldboy]

Andrew Jenkins ceased putting money into the club prior to 2017. He will never put any more in. If in 2017 he had been in a position to put money in then the club would have had no need of the initial £450,000 to get to the end of that season (2016 / 2017) that PD's Edinburgh Wool Limited (of EWM Group) did put in.

The reality of the Andrew Jenkins positions is completely the opposite of him putting money in. He (Pioneer) wants money out that is indisputably owed by 1921. The position of the club and its prospects are as set out in the first post of this thread.

Noted and agreed Stefan/6EQUJ5. However, ultimately AJ would seem to have little choice in the matter.

if PD serves formal demand for immediate repayment of the loan and 1921 cannot repay it (which seems probable) then PD is fully entitled to look to any guarantors to meet any shortfall. This would almost certainly necessitate a further injection of funds from AJ.

Theoretically the injection of funds could go directly into 1921 (thereby enabling 1921 to satisfy the demand served on the Company) but in view of the amount of the debt it would seem far more likely that the funds would go directly to PD (in settlement of the personal guarantee).

What we don't seem to know at this stage is whether the personal guarantee is for the full amount of the debt (unlimited) or for a lesser amount (e.g. £1m).

It may be that AJ does not have adequate liquidity to meet the guarantee liability and if that is the case he could seek financial support from family/friends etc.

Maybe he will be able to negotiate a settlement with PD, possibly for less than the face value of the guarantee and possibly using his shareholding as part of the settlement.

Ultimately, in view of his age, he may even choose to plead a case to the courts that he didn't fully understand what he was signing when he entered into the guarantee (mental capacity).

Clearly there are lots of options here, but as others have already said, PD holds all the cards and the sooner he plays them the better.

Hopefully we can then get on with the future rather than dwelling on the pain of the recent past.

[6EQUJ5]

Quite

[griff]

One option might be that he also goes after the other two and end up the defacto owner of Carlisle Glass from one, and enough to buy a Dacia Sandero from the other.

[_Stefan_Kuntz]

SP owns 25 of the 133 Holdings shares, so 18.8%. (AJ 50, CUOSC 33, JN 25 & SP 25)

SP owns a similar percentage of Carlisle Glass to his Holdings holding. His brother, whose name I cannot remember so I tend to call him Mycroft Pattison (as in Sherlock & Mycroft), owns 49% of Carlisle Glass.

[griff]

That Sandero’s looking even more appealing.