New buyers put off by £20 million hole in accounts

[Mouldedplasticseats]

Yes and the other one is Charlie Methven.

Oh the problematic Bob Murray days would be a dream scenario compared to the shit storm these jokers have conjured up!

 

[bobster999]

I think it might be an idea for Donald releasing a statement clarrifying whether the report is true or not. As it stands there's a lot of very unhappy punters that that have no idea whats going on with the club.
Be interesting to see how many season ticket holders cancel the direct debits because of this.
Worrying times indeed

oh god, are we at the people releasing statements stage and then people releasing a statement about the previous statement

 

[samaistonsrightfoot]

But he says nice things on netflix in the tiny periods he's there.

 

[toomdog]

So at this point where is the final parachute payment we were due? obviously the accounts have to be released but surely if he hasn’t used it there is 35 million floating around ready to use on funding our academy and maintain the running of our club?

 

[steved]

Some people will say, ‘well if you are a billionaire wanting to buy the club why does a few extra million matter!?‘ The difference between the true price (£12m) and asking price (£35m) could easily get you settled in the Championship. £23m is more than enough to invest sensibly in the Championship. With a proper structure in place, could even go up...

Billionaires/successful business people just don’t do deals like that. Whoever gets the finance packs from SAFC must laugh their heads off.

 

[Grumpy Old Man]

Maybe you should have listened to the people saying otherwise, instead of marking them as people who didn't have the club's best interests at heart?

They weren't telling the truth either,

 

[riffraff]

I wonder if the final accounts may not look the same as the draft? Until there's been an AGM to approve them they can be changed.

Oh they’ll be different I imagine.

 

[PRViiS]

Circa £10-12m. He wants £35m. Fairytale stuff.

35? He does realise what league we are in, doesn’t he?

 

[Grumpy Old Man]

So at this point where is the final parachute payment we were due? obviously the accounts have to be released but surely if he hasn’t used it there is 35 million floating around ready to use on funding our academy and maintain the running of our club?

£10m was used in 2018/19 (the infamous Close Brothers loan paid back by the early instalments. Anything else will be reflected in the 2019/20 accounts, which won't appear till next year.

 

[KittenMittens]

They weren't telling the truth either,

I was. I told you they could do this and you questioned my agenda. Just like I said the April 2019 payments went to Short and you said they didn't. They did.

Oh they’ll be different I imagine.

Exactly. They'll be very different. It may very well save the club financially that someone, somewhere, was prepared to challenge them instead of giving them the benefit of the doubt.

 

[bobster999]

I don't understand how it shows anything though if the accounts are made up to July 2019, before the deal had even happened

 

[KittenMittens]

I don't understand how it shows anything though if the accounts are made up to July 2019, before the deal had even happened

Because this relates to the original takeover by Donald/Methven. They're using FPP as a shield because they know fans get weird about their involvement and will forgive almost anything in their name, so they're linking this to an event that is totally ireelevant and came 3-4 months after they agreed a deal.

 

[riffraff]

The obvious thing at the time would have been for Ellis to swallow his pride and leave the £25m in the club. People would still have appreciated the amount he had written off, and, possibly, have been more accepting of the parachute being used to pay off an obvious cluib debt, payable in full by July 2019.

Exactly.

 

[scott934]

I REALLY f***ing hope FPP have outsmarted these ***** in the long run.

PS whichever mod warned me for saying Donald has seen fuck all abuse yet, suck me f***ing balls

I kinda agree, but if we default aren't FPP lumbered with the club rather than actively wanting and buying it? Therefore not bothered what they do with it?

Seems like every negative possibility is a lot more realistic.

 

[toomdog]

£10m was used in 2018/19 (the infamous Close Brothers loan paid back by the early instalments. Anything else will be reflected in the 2019/20 accounts, which won't appear till next year.

So what would you expect to see in this year’s accounts GOM? I was under the impression that as it would cover the takeover most of the financial issues would have been laid bare?

 

[samaistonsrightfoot]

Makes Donald's "I never changed my asking price" statement seem like yet another half truth. Yes he probably didn't change it, he probably asked for £40m initially then still asked for £40m when once the prospective buyers had found the £20m hole in the finances. No wonder people walked away

This is exactly what I've said for over a year now after what I was told last year. Asking price has never changed. Due diligence fucked the value.

'Buy my car for £10k'

'But it has no engine. I'll give you £2k'

'No deal. I want £10k'

'Asking price has never changed. I'm a a modern day Saint'

 

[riffraff]

Perhaps the question is who gave Hope a copy of the preliminary accounts and why?

Mr Smith.

Perhaps the question is who gave Hope a copy of the preliminary accounts and why?

Mr Smith.

 

[Grumpy Old Man]

So what would you expect to see in this year’s accounts GOM? I was under the impression that as it would cover the takeover most of the financial issues would have been laid bare?

I'm expecting to see progress towards financial stability with significant reductions in the wage bill and cost base. To be honest, while this is causing a lot of noise, it has little or no bearing on the trading position going forwards. The £25m cash left the club nearly two years ago. The writing off of the debt has no cash impact. It's as open as it ever was for any owner to put cash in; the only difference is that it will now create an intercompany debt from the club to the holding company, rather than clearing a debt the other way round. It doesn't change the day o day running of the club one iota. It does create slightly different considerations for any incoming buyer, which is something that both sides of a deal would need to address. Any incoming owner will need to commit around £30m (what Madrox paid Short for the shares, plus what they seem to have put in, plus £9m for clear the FPP loan) for Donald to walk away without a loss (clearly £20m if the buyers are FPP).

 

[samaistonsrightfoot]

So do I need to cancel my season ticket? Are we going bust?

I know for a fact the FA's 'worst scenario' for next season is no season at all and a number of clubs will go to the wall by mid September so I'd hang fire on ST purchases regardless.

 

[riffraff]

So essentially the buyers have to stump up £61m while they walk away with £25m profit

They should be selling for £15m. Take their 5 back and pay off the 10 debt and never darken our city again. Arseholes

....and give Juan his quid back. Be funny if they did and lottery tickets were still a quid.....

One thing I don't understand (and maybe GOM or someone will have a better idea) , is why sell 20% of Madrox for a quid? We all know that Sunderland is Madrox's only asset. So if they sell SAFC the money goes to Madrox, and in theory all the owners of Madrox benefit. So why did Donald let Sartori get a fifth of that potential benefit for a pound? Its not to get him involved and investing now because he hasn't been, and it's not to cash in on his great wealth and contacts later because he's been trying to sell constantly. Sartori seems to be getting an absolutely great deal here, even if the club plummeted and only sold for £5m he'd be laughing. So why did Donald do it?

Because in Uruguay it’s warm and they don’t ask too many questions.

Yes and the other one is Charlie Methven.

In one!