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Donald on BBC Newcastle

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threepenny bits said:
I have to say thats my take on it too, its still not clear on the finances when he bought the club, he said he's put 20 million in, has he?

Said between him and Juan they have enough to cover the loan, why get the loan, if you have plenty money in the bank you dont go and get a loan thats not needed!

If FPP wanted to invest, not a loan, invest, why didnt they, why's it been done as a loan?

My feeling is that Donald and Co wanted more for their shares, based on what they can do in the future, Donald has said I can do xy and z with 10 million, FPP pump the money in with zero risk as is secured against assets, and said ha'way then Stewy you make it work with that and we will agree to paying you what you want.
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But the price never changed from either side and hes implied hes started something against the sun for Nixon's bullshit. Hmmm let's see!
 
one armed boxer said:
I think there’s a chance he’ll default on the loan, I don’t think he has the personal finances he claims to service it if we don’t go up and his pal Juan is not a dead cert to bail him out or he would have now. I don’t think the Americans are stupid and had him over a barrel, hence the loan which if he can’t service will become ownership of the club for them.

I hear he has agreed cos he will get a better price if he uses the loan money wisely, shows his worth and gets us promoted. He has been Asked to prove himself for the extra cash and has backed himself (fair play).
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Hes already invested 20 plus million so he has more money than people suggested, and this money isnt needed to help the club survive, it will go on improving the club such as fixing the roof or building the new ticket office and club shop. I believe the loan wont default but instead it will be converted into equity
 
kwillhen said:
But the price never changed from either side and hes implied hes started something against the sun for Nixon's bullshit. Hmmm let's see!
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Not sure about the price not changing like, but let’s presume it didn’t, if what he was asking was unreasonable and based on getting us up or with a further payment if we got up, then clearly they didn’t agree with Donald’s valuation, hence the drawn out process and a different outcome (currently) to a full takeover. Same outcome so It’s irrelevant really isn’t it?
 
Mackemansj1 said:
Wait so why has he gambled the club for the sake of £10m if it’s not needed?. Like me putting my house on the line to buy a car when I don’t need one, why risk it?.
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The only one at risk is himself, if he cant repay it (which he said both him and juan can) the americans would own the club. Its more about getting them involved and building a relationship and the money will be spent in jan as well as improving the clubs facilities and scouting network
 
MadMackem10 said:
Hes already invested 20 plus million so he has more money than people suggested, and this money isnt needed to help the club survive, it will go on improving the club such as fixing the roof or building the new ticket office and club shop. I believe the loan wont default but instead it will be converted into equity
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How do you know Stewart Donald has invested 20 million?
 
not bothered about the finances.whats he going to do about the drop off in performance on the pitch since he appointed the league 1 david moyes?
 
kwillhen said:
But it's all owned by Madrox which is in debt, the holding company, not the club! The club is debt free, its madrox who arnt. But they own safc, and have secured debt against it. But the club is debt free.... I'm confused.
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It's totally normal in a group of companies, which is what we have here,for a loan to one group company to be secured on the assets of more than one. The debt is owed by one company, but having security set up this way gives a lender options in the case of a default. It's legal overkill. The reality is that, in the event of a default, FPP will activate their bail-in clause to acquire the club, or else appoint an administrator to Madrox to sell on the shares in Sunderland. The individual assets of the club companies would only come into play if there were no takers for the shares in Sunderland. Given that an administrator is only required to recover the debt of the secured creditor if appointed by them, the asking price would be the value of the loan, plus a small amount to cover administration costs - say around £10m.

And all this is hypothetical if there is no default.

Would you tell a mate who's just taken out a mortgage that he's bound to see his house sold from under him? Because what's being suggested is the equivalent of that.
 
one armed boxer said:
Not sure about the price not changing like, but let’s presume it didn’t, if what he was asking was unreasonable and based on getting us up or with a further payment if we got up, then clearly they didn’t agree with Donald’s valuation, hence the drawn out process and a different outcome (currently) to a full takeover. Same outcome so It’s irrelevant really isn’t it?
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He said they changed there minds but he cant talk about why, that was upto them if they wanted to disclose why. But he said nowt to do with price or promotion bonuses.
 
MadMackem10 said:
The only one at risk is himself, if he cant repay it (which he said both him and juan can) the americans would own the club. Its more about getting them involved and building a relationship and the money will be spent in jan as well as improving the clubs facilities and scouting network
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For the record I choose to hope his intentions are as he says, because ultimately if they pan out like that it will be for the good of the club I’ll love. However he has again spoken at length and his dialogue has included a fair number of contradictions.

But, let’s just hope it all works out for the best.
 
threepenny bits said:
I have to say thats my take on it too, its still not clear on the finances when he bought the club, he said he's put 20 million in, has he?

I reckon he is including the 15 million he gave to short as part of the 20 million he says he has put in, which ties in with his 4 year plan he mentioned of 5 million last year, 5 million this year and 10 next 2 years
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one armed boxer said:
How do you know Stewart Donald has invested 20 million?
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Well ill start of with the 15 million they paid for the club majority by him, then add on transfer fees the club had spent including 3 mill plus on one play, then he was the one funding the massive losses they were making when they first came in and that will be pretty close to 20 million
 
He views it as a 20 year project! Probably because it’ll take us twenty years to get out of this division with him in charge. The Americans want to invest “in the area”. Invest in what? Another f***ing Greggs? Complete load of cobblers. The fella goes from one thing to another..there’s a loan but no debt..he and Juan could put 10 million in but they could have walked away with 30 million.
 
kwillhen said:
He said they changed there minds but he cant talk about why, that was upto them if they wanted to disclose why. But he said nowt to do with price or promotion bonuses.
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Do you think everything he says is entirely truthful?

Apologies was replying to another post by mistake. You’re right he didn’t say it, in speculating based on things I heard at the match on Saturday.
 
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