‘The real story of the takeover’

Status
Not open for further replies.


West_Winger said:
And all those rallying cries to the fans to buy tickets, merchandise and everything else when he uses parachute payments to buy the club instead of using them to reduce overheads show just how much interest he has in the fans and their money as well.
Click to expand...
he didnt use parachute payments to buy the club-thats the whole point. and actually growing revenue is what owners should be doing.

Grumpy Old Man said:
No idea - there's little or no public information. Apparently the family was involved in the setting up of Hastings Direct or another online broker, and made a lot from selling it on to its current owners. I'd guess £50-100m would be the right kind of ball park. He was certainly rich enough to plough £10m+ into Eastleigh.
Click to expand...
im glad you mentioend the name of the insurer-i thought it was them but wasnt sure..
 
harmy said:
Wats Gordon Armstrong beef?

He’s got a lot to say on social Media about all this.
Click to expand...
He's saying that SD used the £30 million from parachute payments to buy the club from ES. So if SD sells up then Armstrong is asking if SD will put that £30 million back into the club. If not then I can see why he's got a beef! :lol:

Imagine that, you've rich enough so OK'd to buy a business. That business is due £30m so you give it to old owner who is already taking a hit so not really spending your own money. You then sell the club on but then don't have to pay the club the £30 million ;)
 
MackemX said:
He's saying that SD used the £30 million from parachute payments to buy the club from ES. So if SD sells up then Armstrong is asking if SD will put that £30 million back into the club. If not then I can see why he's got a beef! :lol:

Imagine that, you've rich enough so OK'd to buy a business. That business is due £30m so you give it to old owner who is already taking a hit so not really spending your own money. You then sell the club on but then don't have to pay the club the £30 million ;)
Click to expand...
but the money is going back in now-to cover losses etc,,,,essentially he used the £30m to pay ellis earnly-then his onw money to pay debts..
 
Grumpy Old Man said:
I'd love to know which accounts they've looked at, because I can't anything in them to substantiate their claims. Madrox's accounts show £9.6m owing to a group company (SAFC), so that's the counterpart to that debtor, and creditors of £27m, which is presumably the amount owing to Short. There are investments of £37m, which will be the cost to Madrox of the shares in Sunderland Limited. That implies the purchase price was £37m. The £25m of parachute payments was, as already known, used in part payment of the SBC debt, prior to the purchase going through. The suggestion that that £25m ended up with Short is erroneous, given the amount still owing on the shares. What's confusing the Mail are the consolidated accounts of SJD, the ultimate holding company. I'll need to do a detailed crawl through that to separate the group and company elements. It's complicated because,as the takeover was in May, the cosolidated accounts only include the trade of SAFC from then forward. It's not straightforward at all.
Click to expand...
I told you in April that they were using the parachute payments to buy the club and you said i was wrong, now what,?
 
kildaremackem said:
thr article in the daily mail. they gave ellis the para money-but then the creditors-sbc came forward and said they wanted paying-so stewrat and juan paid them..they just reversed the order of who got paid..
Click to expand...
So how much did they pay personally?
I couldn't give a fuck actually
 
Neb_Safc said:
What the same thing that was reported in the media on the 24/05/2018?

If that’s worrying you mate then f***ing brexit must put you on suicide watch.
Click to expand...

Few people getting a little foamy defensive about all this like. Merely pointing out Its quite a negative story and hardly filling me with confidence ref the clubs short to medium term position.
 
Grumpy Old Man said:
That's not his net worth; that comes from a lazy journalist adding up the net asset values on the balance sheets at Companies House. The companies will be worth more than that, but the Donald family wealth comes mainly from profits on previous investments.
Click to expand...

Wow. Even the net asset values don't mean the businesses are "worth" that much either. Journalists are great aren't they.
 
The Rat said:
It is a bit dodgy like, they are only here for one thing lets be honest and have barely spent a penny of their own money

Not sure Short had this in mind when he wiped the debt like, a quick flip and profit.

Using the clubs own money to pay short isnt great like

Expect them to be backed to the hilt as usual though.



Not common knowledge that he has only put forward £5m of his own money like



What not using his own money to buy the club?
Click to expand...
Short wanted out and he got out. We wanted to feel better about our club and we felt better. SD saw a business opportunity and took it. Nowt to get wound up about
 
kildaremackem said:
yes you are-they havent used the para...the para was promised to SBC corporation-it wasdnt stewwarts to spend.
Click to expand...
He tweeted saying £25 mil parachute monies ring fenced and secured for early payment. Madrox replaces these funds over time

So sounds like they have spent it?
 
But lets give two examples of how a deal could be structured when selling a business.
  • The club was worth NOTHING because it wasn't a going concern without the money of the owner underpinning it. Nobody was going to pay money for a club with such massive debts heading towards administration / bankruptcy.
Deal 1
The club owed +£30m to the bank (which was incurring interest/financing costs at £4m or £5m per year). Lets say he sold the club with the £30m still left in the CLUBS books as owing to the bank. New owners paid him nothing for the club and then the parachute payment was then used during the course of the season to pay down the debt and the interest costs that were accruing. Well done the clubs money has been used to pay off the debts that the club owed.

Or, maybe the deal was done in a different way....
Deal 2
Ellis Short agreed to pay the clubs overdraft off immediately, which would reduce the operating costs during the year as interest costs would be significantly reduced. This would give the club a much better cash flow position for the coming season just by the saving of the finance costs (which were frankly a disgraceful position for the club to have been in). But in return, Short wanted to be repaid this money and so the parachute payments would be used to pay him back as and when it was received during the course of the season. New owners paid him nothing for the club.


What's the difference in the two deals? The club is paying off its debts in both examples. But the debt is held with different companies/people and in the second example it has a cash positive impact for the club due to the finance/interest costs.
But in the second example the parachute payments are being made to Ellis Short rather than to a Bank. Let's all now get into hysterics because the club is paying Ellis Short so that new owners can be in place.



kildaremackem said:
but the money is going back in now-to cover losses etc,,,,essentially he used the £30m to pay ellis earnly-then his onw money to pay debts..
Click to expand...

That's effectively what I was trying to explain to people earlier with an example of two different deals that are basically just about cash flow (which potentially benefit the club due to the finance costs that had been incurred previously) - see above.
 
The Rat said:
If he makes 37 million after spending as little as he has then its sly as fuck like. They are being made out to be heroes, and I am not sure why
Click to expand...
That’s like someone else backing an outsider then you whingeing when it won. Wouldn’t have looked sly if we’d been at the wrong end of L2

MackemX said:
He's saying that SD used the £30 million from parachute payments to buy the club from ES. So if SD sells up then Armstrong is asking if SD will put that £30 million back into the club. If not then I can see why he's got a beef! :lol:

Imagine that, you've rich enough so OK'd to buy a business. That business is due £30m so you give it to old owner who is already taking a hit so not really spending your own money. You then sell the club on but then don't have to pay the club the £30 million ;)
Click to expand...
Ellis knew the deal when he made it, can’t see why everyone’s outraged on his behalf now
 
Last edited:
who gives a fuck, they've done what needed doing.....the club was on its knees, at least now there's a glimmer of hope. The fans have reconnected and if the moaning f***ing gloom mongers fucked off there'd be a good feeling round the place.

We've still got a club to support, we should be grateful for that!!!!
 
tooliohelmet said:
who gives a fuck, they've done what needed doing.....the club was on its knees, at least now there's a glimmer of hope. The fans have reconnected and if the moaning f***ing gloom mongers fucked off there'd be a good feeling round the place.

We've still got a club to support, we should be grateful for that!!!!
Click to expand...
Absolutely marra! Who cares apart from terminally envious/bitter folk. If he sells on to someone with plenty of funds we’ll still be better off than under the old regime

rocky said:
Aye I think he'd have liked to have been in Stewarts position in potentially selling the club for a profit
Click to expand...
Like all the bitter whingers on here
 
Last edited:
Status
Not open for further replies.

Back
Top