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Looks like SBC have been paid off

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rowley2 said:
GOM covered this a bit ago I think . We have to be stable without parachute payments asap. They'll stop in eighteen months or so. If that's what they are up to then you can't argue with it. It's the only way to build again.
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Yeah I said on another thread that I thought it was a great way to approach it, basically ignoring the parachute payments when it comes to accounts etc.. They know they are there if needed but are already preparing for life without.

I am happy with the way they are approaching the money side of things so far.
 
So part of the money owed to SBC was against a covenant on the ground and now that Ellis has seemingly paid that off we get to own our ground again? Yes? Was there a covenant on the AOL?

I assume that this means that Ellis has been true to his word and assumingly he has now settled the £152m? Is that a fair assumption or do we think he has merely paid off whats owed to SBC? the rest was i assume to ES and he has simply written that off. Going over old ground here but I've been "away from here for 3 months". Ahem....
 
Buchans Boots said:
So part of the money owed to SBC was against a covenant on the ground and now that Ellis has seemingly paid that off we get to own our ground again? Yes? Was there a covenant on the AOL?

I assume that this means that Ellis has been true to his word and assumingly he has now settled the £152m? Is that a fair assumption or do we think he has merely paid off whats owed to SBC? the rest was i assume to ES and he has simply written that off. Going over old ground here but I've been "away from here for 3 months". Ahem....
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With a charge there's no change of ownership involved. It's essentially the same as a domestic mortgage, giving the lender the right to acquire those assets in the event of default. Short still has charges over the SoL, AoL, Black Cat House and the parachute payments (bit of overkill there) as security for the amounts the owners still owe him for the purchase.

The intercompany debt between Sunderland and Drumaville will have been capitalised as part of the share issue that took place in May, the same way as other elements of money put in by Short had been capitalised previously.

I'm confident that the club is, as Short intimated, currently debt free. Of course, there may be, probably will be, a need for internal, external or both forms of borrowing in future.
 
young2077 said:
Yeah I said on another thread that I thought it was a great way to approach it, basically ignoring the parachute payments when it comes to accounts etc.. They know they are there if needed but are already preparing for life without.

I am happy with the way they are approaching the money side of things so far.
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Aye getting to a stable financial situation in the short term and hopefully as the football side progreses Mr Sartori is in the wings as and when we need to invest. Best of both worlds. Fair play to Mr Short too with his support in getting us to this position.

The mix of Mr Donald, Mr Methven and Mr Sartori is exciting indeed. We have a mix of good business acumen, potential serious financial backing and impressive PR too as well as some very good connections..

We have had false dawns (with some fun on the way) in recent years but this time who knows where we will end up.

If you can get to the games and support these fellas....this could be big.

Grumpy Old Man said:
With a charge there's no change of ownership involved. It's essentially the same as a domestic mortgage, giving the lender the right to acquire those assets in the event of default. Short still has charges over the SoL, AoL, Black Cat House and the parachute payments (bit of overkill there) as security for the amounts the owners still owe him for the purchase.

The intercompany debt between Sunderland and Drumaville will have been capitalised as part of the share issue that took place in May, the same way as other elements of money put in by Short had been capitalised previously.

I'm confident that the club is, as Short intimated, currently debt free. Of course, there may be, probably will be, a need for internal, external or both forms of borrowing in future.
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Given where we were a few months ago we should be very happy where we are now.
 
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Grumpy Old Man said:
With a charge there's no change of ownership involved. It's essentially the same as a domestic mortgage, giving the lender the right to acquire those assets in the event of default. Short still has charges over the SoL, AoL, Black Cat House and the parachute payments (bit of overkill there) as security for the amounts the owners still owe him for the purchase.

The intercompany debt between Sunderland and Drumaville will have been capitalised as part of the share issue that took place in May, the same way as other elements of money put in by Short had been capitalised previously.

I'm confident that the club is, as Short intimated, currently debt free. Of course, there may be, probably will be, a need for internal, external or both forms of borrowing in future.
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You really are a breath of fresh air for us concerned, but financially challenged thicko’s on here marra!
 
So if the club's finances are effectively being balanced without taking the parachute payments into consideration, then what is happening to the 48 million due over the next two years?
 
Buchans Boots said:
So part of the money owed to SBC was against a covenant on the ground and now that Ellis has seemingly paid that off we get to own our ground again? Yes? Was there a covenant on the AOL?
Going over old ground here but I've been "away from here for 3 months". Ahem....
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Been in the big house?
 
This is good news and much better than doing a deal last year.

I am not one for claiming to be in the know, however for once I can. I was helping my son move houses in Leeds a couple of weeks ago and as he needed a lift to the cricket match he was playing in I popped in to watch the games. Out of the blue one of the other lads in the team, who we knew worked in sports management started talking to us about Sunderland and Short in particular.

It turns out he was advising one of the three groups who were looking to buy the club in 2017. The group he was working for was one draft away from a deal but that would take them past the deadline set by Short by a week. The deal collapsed when Short said a deadline is a deadline and threw his toys out of the park, his words not mine.

The deal at that time didn’t include paying off debt and also left the ownership of the ground with Short. I was told that it was a bad deal but the buyers wanted the club.

When talking about the current deal he said it was one of the best deals for any club and that new owners have bought a fantastic club with the capacity to major force in the future. But if last years deal had gone through the club would have still been stuck with debt and very few assets.

All I can think is that Short finally accepted that he was responsible for the mess the club was in after last season and felt he had to do the right thing.
 
Grumpy Old Man said:
Highly. The charges over SAFC are also gone. So it looks as though Short has paid off the amount that went up to Drumaville.

The only charges over the club are those granted to Short to cover the outstanding purchase payments.

Happy days.
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Finally woken up after having to down that pint on saturday? Funny how we spoke about this Sat and then here we are with the charge released
 
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