Port Vale: Board unanimously rejects Mo Chaudry offer
PORT Vale's eight-man board decided unanimously not to pursue Mo Chaudry's proposed £1.3m investment in the club.
The multi-millionaire businessman from Newcastle had requested a meeting with the board after sending each director a written outline of his proposals.
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But The Sentinel understands they were all polled about his plans for the club and opted to dismiss them.
The club then contacted Chaudry's legal advisers, Beswicks Solicitors, and told them Vale was not for sale.
Despite making losses of £372,649 last season, club sources said Vale's financial situation was better than some people envisaged.
The board are also believed to be concerned that the number of would-be investors who have emerged in recent months could destabilise the club at a time when the team are performing exceptionally well under the guidance of manager Micky Adams.
New York-based hedge fund trader Mike Newton had a £500,000 offer rejected in August, while a separate US consortium have since met the board to discuss a buyout.
Chaudry hit out at the board for refusing to even consider his proposals – before upping the ante in his fight to gain control.
"I'm obviously disappointed and shocked the board have not shown me the courtesy of having a formal discussion about my proposals," he said.
"What sort of message does that send out to Vale fans?
"I regard dismissing my bid without further discussion or without holding a board meeting as unprofessional and despicable."
"Are they genuinely interested in attracting an investor for the benefit of Port Vale?"
In his letter to the board, Chaudry revealed his ambition to help Vale win promotion back to the Championship within the next five years.
Chaudry now says he is willing to invest even more than the original £1.3m proposed.
He is ready spend an initial sum of between £2.5m and £3m to buy up all the club's sold shares – worth £1.162m – and help reduce the club's debt.
He also pledged to "substantially" increase Adams's ' budget for players, particularly if Vale win promotion to League One.
"I don't intend going away," added Chaudry. "I'm prepared to do whatever it takes to move the club forward.
"Before I was considering buying a majority stake in the club because I wanted the fans to benefit from my ownership, but if required I am now willing to buy out the club 100 per cent."
Vale chairman Bill Bratt and his board seem certain to come under intense scrutiny at the club's annual meeting on Monday night (7.30pm).
Already some disgruntled fans are trying to organise an anti-board protest which would take place an hour before shareholders meet.
"If I have the support of the fans I will stick with this," vowed Chaudry.
"But it can only happen if the fans put enough pressure on the directors."
How can the Vale board afford to say 'no' to Chaudry? Page 55
17 Comments
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by Ben, Trentham
Saturday, December 11 2010, 9:48PM
“We need change and we REALLY need this investment to happen and I can't see how the current board, some with £500, can possibly reject this! Some questions need to be asked and certainly some answers are needed if protests and action from the fans isn't going to happen, but at the moment its inevitable beside the current board seem incapable of seeing what's good for port vale!!!”
by adrew stowe, werrington
Friday, December 10 2010, 11:14PM
“I cant believe bratt and the other board members can turn such an offer down like this! how can the club and mickey move forward without this type of investment.If we get promoted this season which i think we will what kind of budget is mickey going to get without this investment? i personally think we will need a couple of better players to survive in league 1! the presant board have nomore money to invest! we are just going to keep losing money season after season until we get somebody in commercially minded! People keep saying investers only want the land vale park is on, well im sorry but ive said for years now the ground is far to big for us.To have the ground less than half full each week is crazy! Even if we got promoted we still wouldnt get more than 10,000 through the gates! Running costs must be cippling the club. so i for one wouldnt say no to a 12/13,000 more compact stadium like blackpool have got! more atmosphere ,more cost effective surely makes financial sense for a club our size! so if they offered a new ground and investment why not?”
by steve, Newcastle
Friday, December 10 2010, 7:43PM
“The 24.9% shareholder rule makes the Mo bid unacceptable BUT if Mo is offering £3 million (Radio Stoke Friday night) Bill Bratt must offer at the AGM to "throw out" the Valiant 2001 rule and let supporters vote on it?
The injection of £3 million would allow Mo a fresh start without crippling interest charges and a gang of "hangers on" making decisions about OUR club despite having invested huge sums of £500.
2010/2011 is already a positive season for Port Vale:
1. With at worst a deafeat at Burnley, nett £150k gate receipts/prize money from League, JPT, FA cup matches (80/90% not budgeted for).
2. Two thousand plus walk up
supporters at home matches paying full price admision (£10k a match nett?) and offering the potential to become regulars.
3.Quality comitted players and the best manager outside the Premier league.
Go for it Bill hopefully league one 2011/12 with 8k gates look how Bournemouth and Rochdale are performing this season.”
by readthecharterpleasebill, Burslem
Friday, December 10 2010, 6:31PM
“Jonathan Westlake - Mo has tried to by the unsold shares. There is a restriction on buying them! The board have stopped him!!! For crying out loud, its this kind of board apologist rubbish that is so frustrating. You don't have to sell your shares. He is willing to invest alongside current shareholders. He is offering to by £1.3 million of unsold shares, that would go straight into the football club. Yet the board wont even sit down and discuss it, and see if its for the best of the club! There is no defence for that at all. He may not be right for us, but we'll never know, and something isn't right behind the scenes for them to turn away such an offer without any negotiations.”
by Tony, Trentham
Friday, December 10 2010, 4:11PM
“The board are really Stoke fans who are waiting for the right offer from Tesco after initially rejecting an offer from ASDA. Talks have been ongoing to rehome the club at Eastwood Hanley's former ground.”
by dungadin, bycars
Friday, December 10 2010, 3:50PM
“Perhaps vale IS bills pension fund”
by Special Agent Oso, Joiners Square
Friday, December 10 2010, 2:28PM
“Seems to me PVFC is on self destruct. The board will not change until it has seen relegation into non league.”
by Andrew, Weston Coyney
Friday, December 10 2010, 1:58PM
“Perhaps Mo used to manage Bills pension fund.”
by Sye, Stafford
Friday, December 10 2010, 12:29PM
“A few reasons as to why it would be beneficial to hear what this guy has to say and where Port Vale currently are....
(1) Bottom league of professional football
(2) No money
(3) Debt
(4) Year on year loses
(5) Directors who can't afford to shop at Sainsburys
(6) No further investment from the current directors (as they haven't got any money!)
(7) A director who only has £500 in shares!
(8) A small playing squad
(9) Ageing ground and facilities
(10) No marketing
(11) No promotional campaigns
(12) No integration into local schools
(13) Unsustainable ticket prices
(14) High police bills
...... Shall I continue. We need change.”
by Sye, Stafford
Friday, December 10 2010, 12:21PM
“Mark, Newcastle - Tarnished reputation?
Are you having a laugh ? Reputations don't get more tarnished that those of our current board of directors.”