Some actual facts emerged in the proposed Peter Cullum takeover today. The Evening News report that the board has agreed to meet the billionaire to discuss “the parameters”, but that isn’t the part of the article that got my attention. There are a few other quotes in there, little details that may answer a few of the bigger questions.
This little excerpt in particular grabbed me:
“I admire what Delia and Michael have done and want to work with them. I would want two-thirds of the share-holding for the £20m investment. With that level of share-holding (a majority); it would mean the club is in my control – and I was informed that was a complete no-no for Michael and Delia.
“They have said it costs £56m to buy Norwich City – technically they are right but that assumes that the debt has to be repaid – there might be clauses with the loan providers – but I know those providers would be happy to renegotiate with me.
“But the aim was not to give £20m just to pay off the debts – what is the point in that? It was about getting in new players.
In the spirit of jumping to conclusions and speculating wildly, I think we can make a few conclusions and get speculating from Mr. Cullum’s latest statements:
– If, as has been reported, £20m was to be invested in the squad then Cullum would be “buying” two-thirds of the share-holding for nothing.
– We know that if he buys 66% of the shares he is obliged to make an offer on the remaining issued shares at the same price paid for the first lot, i.e. nothing.
– The plan would not be to pay-off the debt, but to renegotiate with the loan providers.
So that would imply to me that in exchange for a £20m injection to the playing budget, Mr. Cullum would get the lot. Sounds like an absolute bargain to me – especially if the dream became reality and Premier League football returned to Carrow Road.