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New buyers put off by £20 million hole in accounts

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With the 20 million black hole and a further 10 million loan, plus this corona virus pandemic.

pray to god that the yanks saw this coming and buy us when Donald is desperate to get out.
 

Grumpy Old Man said:
Via RAWA, I had a phone conversation last summer with someone claiming to be Campbell. It was set up by someone I know well and trust. Frankly, the call scared the shit out of me. He's certainly someone I wouldn't trust not to sell and leaseback the SoL (see Coventry for the problems that can get you into).
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Imagine being owned by someone the supporters don't trust....
 
Grumpy Old Man said:
Via RAWA, I had a phone conversation last summer with someone claiming to be Campbell. It was set up by someone I know well and trust. Frankly, the call scared the shit out of me. He's certainly someone I wouldn't trust not to sell and leaseback the SoL (see Coventry for the problems that can get you into).
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Given everything do we trust Donald not to do it? We know his words mean nothing. We know he can’t/won’t fund the club. We know he’s looking to take money from the sale that is wildly out of scale with his achievements.
 
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.
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Working in facts, how would you categorise saying "they are not to be used to pay for the club, they are only being used as security" and then 7 or 8 months later saying "they were always earmarked for that reason"?
 
Hawyatt Earp said:
I’m not sure I could despise Donald any more than I already did, but here we are
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Why?

We already know he bought it on the hopes to flip a quick profit. It just hasn't worked out for him. Should of been a surefire return to the championship when he arrived he basically played roulette with the club and bet on red and black game up.
 
AndrewP said:
Nonsense to be fair. If Sunderland was worth ten billion that deal wouldn't have happened for the price stated.
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Agreed, but if Sartori gave SD a quid for 200 shares in Madrox (more likely £200, but there you go), it's just as nonsensical to claim that Sunderland is only worth a fiver off the back of it. The base line has to be the £12.7m Madrox paid for the sahres in Sunderland.
 
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.
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Yep that’s about the size of it. For me SD has been shall we say a bit devious to say the least. As I posted earlier it was as clear as mud when it was disclosed last year and a lot of people didn’t really grasp it.
 
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.
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so how much did they actually give short for the club?

i always thought that them using the parachute payment to pay off the £25m debt was well known, and part of the arrangement from the beginning?
 
Coeus said:
Working in facts, how would you categorise saying "they are not to be used to pay for the club, they are only being used as security" and then 7 or 8 months later saying "they were always earmarked for that reason"?
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I can't, and i have no idea why they equivocated for a year before stating what was pretty bloody obvious once all you'd seen all the documentation.
 
cowan86 said:
With the 20 million black hole and a further 10 million loan, plus this corona virus pandemic.

pray to god that the yanks saw this coming and buy us when Donald is desperate to get out.
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If Donald can't pay the loan back the Americans take over
 
JOEJA said:
Started going 1979, season ticket as long as i can remember. These theiving bast@@ds have tipped me over the edge wont pay another penny while they are here. Direct debit getting cancelled.
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They’re in for a shock “next” season, whenever that happens. Accounting for their unpopularity, COVID, etc, even if stadiums can open to the public, we’d be lucky to get 18k through the gates at this rate. We’re only strong in this division if we have an average gate of 25k plus. We’re fucked. Why the fuck would anyone pay 40 mill for us? And then need to inject another 40 at least to get us back in the prem.
 
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