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New buyers put off by £20 million hole in accounts

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Class #Donaldout is trending on twitter niw loads of Yanks looking at it thinking its about Trump.
I always said i would keep my opinion open about Stewart Donald until there was some concrete evidence came out. Looks like we are there now with £20m disappearing into a black hole.
 

tunstallhill said:
how do they 'take £20m' out of the club into their own pocket?

i have no idea what is going on here, can someone explain it in simple terms, in a few steps from when they bought the club to where we are now?
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In real terms I don’t think they have. They’ve used £25m of the clubs parachute payments to settle the clubs old debt to SBC via short.

I think the confusion comes from the fact Short announced he’d cleared the debt, when there was £25m still lingering in the background. The debt might not have been on a balance sheet but it still existed in some form. I think short effectively cleared it from the clubs books but added it onto the purchase price.

The problem people have is that Donald is now supposedly asking for £35m to sell. If he’s only put £15m in (Not £40m as originally stated) then he clicks £20m profit as a result of the club increasing in value, as it now has little or no debt.

Many suspect this has been the plan all along.

This is my interpretation of it all so I might not be totally correct but I think it’s along the right lines.
 
Grumpy Old Man said:
That's the thing that baffles me. If they'd actually given the correct detail at the time, it wouldn't have been popular, but it would have been a passing glitch. Hell's teeth, even I needed to see the charges in Short's companies to confirm what I thought had happened.
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Maybe they just coukdnt help themselves but to lead us along thinking all was rosy? To try and hit the ground running.
 
Some on here don't mind the owners majority detest them and some are undecided but the vast majority of us have the clubs interests in out hearts I for one never trust anything printed in the media and if the people who wrote this article have the so called proof can someone who use social media ask them to show the proof
 
gavrocks said:
Some on here don't mind the owners majority detest them and some are undecided but the vast majority of us have the clubs interests in out hearts I for one never trust anything printed in the media and if the people who wrote this article have the so called proof can someone who use social media ask them to show the proof
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:lol::lol::lol::lol:

Dear me
 
gavrocks said:
Some on here don't mind the owners majority detest them and some are undecided but the vast majority of us have the clubs interests in out hearts I for one never trust anything printed in the media and if the people who wrote this article have the so called proof can someone who use social media ask them to show the proof
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the times don’t usually report unless they are certain
 
gavrocks said:
Some on here don't mind the owners majority detest them and some are undecided but the vast majority of us have the clubs interests in out hearts I for one never trust anything printed in the media and if the people who wrote this article have the so called proof can someone who use social media ask them to show the proof
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They have already suggested it themselves to be honest. It isn't outlandish what is being said.
 
tunstallhill said:
can someone explain to me how they owe the club £20million?
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It's all down to the idiotic way the deal got structured. The agreement was that Short moved the last £25m of the SBC loan into Drumaville so he could present the club as "debt free" when it was no such thing. £25m of the parachute was to be paid into Drumaville. That's actually against PL rules, but no one noticed that until Angela Lowes was told what was happening, and said it couldn't be done. That meant that the money had to come into Sunderland, and then go up to Madrox (who, contractually, owed Short the money) and on to Drumaville. That left Madrox owing that money to Sunderland. The amount written off suggest that about £5m has been put back into the club. The argument will be that the £25m was club money used to repay a club debt. Whether you think that's right or not depends on your moral position. And if you think that's me sitting on the fence, you're absolutely right. I'm going to stick to the facts, and let others argue relative morals.
 
Forty said:
Class #Donaldout is trending on twitter niw loads of Yanks looking at it thinking its about Trump.
I always said i would keep my opinion open about Stewart Donald until there was some concrete evidence came out. Looks like we are there now with £20m disappearing into a black hole.
Click to expand...
Have you seen it in black and white or taking the word of a reporter if you can get the proof mate can you out a link on here to show it ps not a link to the story as the proof is what we need to see cheers
 
gavrocks said:
Have you seen it in black and white or taking the word of a reporter if you can get the proof mate can you out a link on here to show it ps not a link to the story as the proof is what we need to see cheers
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I’m sure donald will threaten legal action again if its not true
 
Logon or register to see this image


Isn't this what was on Companies House on April 27th and a thread was made here about it?

That's not a leak, that's a an openly viewable document on a public website.
 
Grumpy Old Man said:
It's all down to the idiotic way the deal got structured. The agreement was that Short moved the last £25m of the SBC loan into Drumaville so he could present the club as "debt free" when it was no such thing. £25m of the parachute was to be paid into Drumaville. That's actually against PL rules, but no one noticed that until Angela Lowes was told what was happening, and said it couldn't be done. That meant that the money had to come into Sunderland, and then go up to Madrox (who, contractually, owed Short the money) and on to Drumaville. That left Madrox owing that money to Sunderland. The amount written off suggest that about £5m has been put back into the club. The argument will be that the £25m was club money used to repay a club debt. Whether you think that's right or not depends on your moral position. And if you think that's me sitting on the fence, you're absolutely right. I'm going to stick to the facts, and let others argue relative morals.
Click to expand...

That is some stretch mind
 
Grumpy Old Man said:
That's the thing that baffles me. If they'd actually given the correct detail at the time, it wouldn't have been popular, but it would have been a passing glitch. Hell's teeth, even I needed to see the charges in Short's companies to confirm what I thought had happened.
Click to expand...
Yeah. This would be half a story - or at least a story about the ridiculous asking price he’s asking. However they deliberately misled the fans to think they’d paid more for the club than they actually had and then told further lies to cover things up. Quite why they’d do this is beyond me. The only thing I can think is that they wished to disguise quite how little funding they actually had to prevent the fanbase from going crazy. Daft thing is they really didn’t need money as much as they needed intelligence. Sadly for the fans they’ve got neither.
 
beezer said:
In real terms I don’t think they have. They’ve used £25m of the clubs parachute payments to settle the clubs old debt to SBC via short.

I think the confusion comes from the fact Short announced he’d cleared the debt, when there was £25m still lingering in the background. The debt might not have been on a balance sheet but it still existed in some form. I think short effectively cleared it from the clubs books but added it onto the purchase price.

The problem people have is that Donald is now supposedly asking for £35m to sell. If he’s only put £15m in (Not £40m as originally stated) then he clicks £20m profit as a result of the club increasing in value, as it now has little or no debt.

Many suspect this has been the plan all along.

This is my interpretation of it all so I might not be totally correct but I think it’s along the right lines.
Click to expand...

still dont understand it like

the club was due £25m in parachute payments in the year after donald bought the club. donald was supposed to use this money for players, wages etc.. but used it to pay off the clubs debt, that he was supposed to have already paid off with his own money?
 
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