Significant investment by FPP has been made

[Hot Since 82]

No, it's my view that the parachute payment was used to repay the last £25m of the SBC loan, which was transferred to Drumaville when the deal completed, as evidenced by the appearance of charges in the hotel company relating to a £25m loan facility secured on the assets of Drumaville, Sunderland FC Hotels Ltd, and Short-owned company in Bermuda.

GOM what's your take on this then, this 9 or 10 million share capital, are those shares owned (ultimately in Madrox or SJDHL or wherever) by the yanks as investors, or have they simply made a loan to SD for him to inject the capital? And they have option to take shares if he doesn't repay the debt?

 

[Grumpy Old Man]

GOM what's your take on this then, this 9 or 10 million share capital, are those shares owned (ultimately in Madrox or SJDHL or wherever) by the yanks as investors, or have they simply made a loan to SD for him to inject the capital? And they have option to take shares if he doesn't repay the debt?

They'll be owned by Madrox. How the money got into Madrox is a mystery. In the absence of more concrete information (ie a charge document filed by Madrox), the working assumption has to be that it's an unsecured from FPP.

 

[Hot Since 82]

They'll be owned by Madrox. How the money got into Madrox is a mystery. In the absence of more concrete information (ie a charge document filed by Madrox), the working assumption has to be that it's an unsecured from FPP.

Cheers, yes no new charges filed on Madrox, yet.

 

[deleted user 785]

So basically we've took a loan out?

 

[JHmackem]

@Grumpy Old Man What do the changes on Madrox today mean?

06 Nov 2019	Confirmation statement made on 9 October 2019 with updates
06 Nov 2019	Change of details for Sjd Leisure Holdings Limited as a person with significant control on 4 August 2018

 

[Hot Since 82]

So basically we've took a loan out?

Possibly but possibly not, I'm sure SD will give an honest and concise explanation at some point

 

[Boyceyyy]

Possibly but possibly not, I'm sure SD will give an honest and concise explanation at some point

I wouldn’t be so sure, mind.

 

[Grumpy Old Man]

@Grumpy Old Man What do the changes on Madrox today mean?

06 Nov 2019	Confirmation statement made on 9 October 2019 with updates
06 Nov 2019	Change of details for Sjd Leisure Holdings Limited as a person with significant control on 4 August 2018

Nothing. They relate to Sartori talking a stake last summer.

 

[Black Cat Gypsy]

So basically we've took a loan out?

That's how it sounds. But most of this is Double Dutch to me.

 

[deleted user 785]

Possibly but possibly not, I'm sure SD will give an honest and concise explanation at some point

Aye, I'm sure of it.

 

[kildaremackem]

So basically we've took a loan out?

safc hasnt..jnowt to do witht eh club..madrox might hve done,..and then it has given (not lent) the money to safc..

if the mnaericans loaned the cash to madrox..it is either unsecured or secured by the assets of madrox..not those of safc.

madrox has only one asset..the shares it owns in safc..

so, if the terms of any loan werent met..the americans woulfd take madrox shares in safc..and become the owners of safc.

That's how it sounds. But most of this is Double Dutch to me.

madrox took the loan..not safc..nowt to do with the club in that sense.

 

[deleted user 785]

So it's a loan. All the waffle about what ifs and maybes is irrelevant.

 

[Deleted member 35923]

So basically we've took a loan out?

Madrox have. And it’s to help with running costs regardless of how it’s dressed up.

If money is put in to help set up a scouting network that used to exist but now doesn’t, and to fund an academy that used to be funded well but now isnt, and to maintain a stadium, that is pretty much running costs to get us back to a base level.

As things stand, it’s not really anything to be excited about. If FPP later take more control, then it might be.

 

[shepherd88]

Madrox have. And it’s to help with running costs regardless of how it’s dressed up.

If money is put in to help set up a scouting network that used to exist but now doesn’t, and to fund an academy that used to be funded well but now isnt, and to maintain a stadium, that is pretty much running costs to get us back to a base level.

As things stand, it’s not really anything to be excited about. If FPP later take more control, then it might be.

Sounds like the Tories. Few years ago cut the police by 21k officers, fast forward to now, tories are putting an extra 20k officers on the street to make them safer and we should all be grateful and applaud them

 

[Deleted member 35923]

Sounds like the Tories. Few years ago cut the police by 21k officers, fast forward to now, tories are putting an extra 20k officers on the street to make them safer and we should all be grateful and applaud them

might be the case

 

[Guinness Guzzler]

Madrox have. And it’s to help with running costs regardless of how it’s dressed up.

If money is put in to help set up a scouting network that used to exist but now doesn’t, and to fund an academy that used to be funded well but now isnt, and to maintain a stadium, that is pretty much running costs to get us back to a base level.

As things stand, it’s not really anything to be excited about. If FPP later take more control, then it might be.

I'm fairly excited about it. It means we have the ability to add to the squad in January as the wage limit will have risen, just need to keep ourselves in the hunt until then. Equally I can't see any reason in the world why these people would loan money to Donald and co just to earn a bit of interest, its fairly obvious that it's a first step to them hopefully becoming shareholders. It also means it's likely we'll be able to benefit from some of their contacts, which again could be beneficial. It's not worth jumping up and down about (yet) but you'd have to be pretty pessimistic not to see it as a very promising sign

 

[sksk3021]

I'm fairly excited about it. It means we have the ability to add to the squad in January as the wage limit will have risen, just need to keep ourselves in the hunt until then. Equally I can't see any reason in the world why these people would loan money to Donald and co just to earn a bit of interest, its fairly obvious that it's a first step to them hopefully becoming shareholders. It also means it's likely we'll be able to benefit from some of their contacts, which again could be beneficial. It's not worth jumping up and down about (yet) but you'd have to be pretty pessimistic not to see it as a very promising sign

We already could have a wage budget way above anyone else in the league though, we are getting parachute money this year.
I’m not sure what it might mean in the future but something feels a bit strange about it to me, I’m not sure why.

 

[Kermit]

Its a piss take if it is just a loan. I think it is a misleading to call a loan "investment", although technically, i suppose, it is correct.

With my mortgage i dont go around saying, "yeah ive just secured some investment from barclays"

Loan - a thing that is borrowed, especially a sum of money that is expected to be paid back with interest.

Investment - the action or process of investing money for profit.

Hopefully it is the latter

 

[Guinness Guzzler]

We already could have a wage budget way above anyone else in the league though, we are getting parachute money this year.
I’m not sure what it might mean in the future but something feels a bit strange about it to me, I’m not sure why.

I thought it had been mentioned a few times that we were having to be very careful due to SCMP and were still having regular discussions with the EFL? @kildaremackem seems to be the man for remembering what's been in the press but I'm sure I'd heard that we still had very little room for manoeuvre. We can't go mad with spending (and we shouldn't have to) but this means we should be able to bring a player or two in during the window without causing issues.

Not sure why it would seem strange tbh. Obviously we were all hoping to see them with a substantial stake in the club, but this is much better than them having walked away completely. I get the impression the rumours were right that they became anxious about the risk involved and this is an easy, risk free way for them to dip their toes in the water and see whether to invest in a share holding capacity later

 

[sksk3021]

I thought it had been mentioned a few times that we were having to be very careful due to SCMP and were still having regular discussions with the EFL? @kildaremackem seems to be the man for remembering what's been in the press but I'm sure I'd heard that we still had very little room for manoeuvre. We can't go mad with spending (and we shouldn't have to) but this means we should be able to bring a player or two in during the window without causing issues.

Not sure why it would seem strange tbh. Obviously we were all hoping to see them with a substantial stake in the club, but this is much better than them having walked away completely. I get the impression the rumours were right that they became anxious about the risk involved and this is an easy, risk free way for them to dip their toes in the water and see whether to invest in a share holding capacity later

We have to because we won’t have the parachute money next year so if we don’t get promoted would have to dramatically cut wages. It’s a similar situation as it stands with this money.
Strange in the sense I don’t understand the point of it. If it’s for investment in scouting and youth those things take a long time to see the benefits. They also increase the running costs which leaves us vulnerable if they don’t invest further.
Hopefully they spend the money well and it improves the club, but as it stands it’s just a cash flow improvement for the current owners as far as I can tell.