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Significant investment by FPP has been made

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vinegar hill said:
Can someone tell me what the downside is of this cash injection?
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I can tell you a theoretical one. If the club is losing let's say 2 or 3 million per year and has a history of losing money on their investments / transfers, a loan would only accelerate losing more money.

If we go up the the expenses rise quicker than income.

All theoretical of course.
 
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kildaremackem said:
why would you be told about this latest deal?
its nowt to do with safc...the americans have invested into madrox..safcshares dot change hands and safc isnt in debt as a result?
this deal doesnt change the equity value of the club, or pass comment on it..really we wont know the full pictre untilhe accous are released showing how much SD CM AND JS have put in both prior to this deal and afterwards..
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I dont think we need to see much detail...just the results.

Other clubs knowing our business is not good business if you know what I mean.
 
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Coeus said:
I can tell you a theoretical one. If the club is losing let's say 2 or 3 million per year and has a history of losing money on their investments / transfers, a loan would only accelerate losing more money.

If we go up the the expenses rise quicker than income.

All theoretical of course.
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of course this is corerect..but if the loan is to madrox..and madrox invest it into safc..then the security ofr the loan is something madrox provide..not something safc do..
 
kildaremackem said:
of course this is corerect..but if the loan is to madrox..and madrox invest it into safc..then the security ofr the loan is something madrox provide..not something safc do..
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Not necessarily. The assets of the club are just as much part of the Madrox group, and could be valid security. It's worth noting the the loan facility that Short took out with SBC at the time of the takeover was secured on the assets of three of his companies - Drumaville, the company that runs the Hilton, and a Bermuda-based property company.
 
Grumpy Old Man said:
Not necessarily. The assets of the club are just as much part of the Madrox group, and could be valid security. It's worth noting the the loan facility that Short took out with SBC at the time of the takeover was secured on the assets of three of his companies - Drumaville, the company that runs the Hilton, and a Bermuda-based property company.
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thanks. but how does that work..each company is a seperate kegal entity right? or is madrix the parent?
also if there are safc assets being used as secuturity..the charge would have egistered by now presumably?
 
kildaremackem said:
thanks. but how does that work..each company is a seperate kegal entity right? or is madrix the parent?
also if there are safc assets being used as secuturity..the charge would have egistered by now presumably?
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No charges have been registered in any group company so far. As Madrox owns 100% of Sunderland Limited, which in turn owns 100% of SAFC Ltd, it could provide security in the form of its shareholding in Sunderland, individual assets of the group company concerned, or both. All that is necessary is that the assets concerned are capable of being used as security, and that the owners of those assets are prepared to offer them as security.
 
kildaremackem said:
ive mentioned this before and people have said what im pointing aout may not fit the definiotn of corruption, which is fair enough, but it certainly was bad for the club.
some scouts were choosing to watch games further away from where they were based, as they got paid moe for doing it, this meant they saw a lot of the wrong playwrs, or didnt watch players on their patch who were actually good enough..

any evidence we ddidnt use those?
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Many clubs use freelance ones and I used to do a bit of work for Watford with a friend of mine in that regard. One of the players we were sent to watch was a certain SKP playing for Baldock against Margate I think it was, ended 1-1 and he was at full back iirc and he was excellent.
 
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