New buyers put off by £20 million hole in accounts

[iansun]

I’m sure it won’t mate.

Times are always darkest before the dawn

They have been pretty dark for a long time

 

[riffraff]

Club is gonna fold.

FPP would get us before that and they’ve a record of philanthropy. Them or The People’s Club or River Bank Sunderland? Waddya prefer?

 

[Quench]

Charlie was almost spot on that NE people dont understand business. Some of us don’t understand business all of the time, all of us don’t understand business some of the time but all of us don’t understand business all of the time....errrrh that last bit needs a bit of work

You need another not

 

[KittenMittens]

A stupid question perhaps @Grumpy Old Man

What would even be the point of this? The owners fully own the club anyway, so they’re just reducing the value of their asset by taking the cash now?

Unless they intend to default the club (which given it has value would seem odd), what does this achieve?

thanking you

Sunderland has been factually debt-free (other than the short-term quasi-overdraft this time last year) from the moment the parachute payments left the club. At the point Donald bought it, it was only cosmetically debt-free. The debt free thing had to have started with Short - he was the one who was able to move it off the Sunderland balance sheet. I think most people agree that Donald would have been better off having that debt left in the club to be dealt with internally, but that's in the past now. Madrox wil have debts to FPP and also to one or more of its shareholders (mainly Donald in the form of SJD Leisure Holdings, which has his shares in Madrox). It's impossible to know precisely what's happening until I've seen the accounts of all four companies (SAFC, Sunderland, Madrox and SJD). You really can't get the full picture looking at only one of the four in isolation.


Apology given. But if you're gong to have a user name and standpoint that renders you easily confused with Chris Weatherspoon that's going to happen.

Apology accepted.

 

[wackyjacky]

Does anyone actually know how much he's asking for the club? I mean actually know for certain.

Keep hearing this $40 million bandied about but has it actually been confirmed?

The prospective buyers who have been sent the preliminary accounts as part of a 'buyers package' are saying it's £35m-£40m.

 

[SPUFF]

Sunderland has been factually debt-free (other than the short-term quasi-overdraft this time last year) from the moment the parachute payments left the club. At the point Donald bought it, it was only cosmetically debt-free. The debt free thing had to have started with Short - he was the one who was able to move it off the Sunderland balance sheet. I think most people agree that Donald would have been better off having that debt left in the club to be dealt with internally, but that's in the past now. Madrox wil have debts to FPP and also to one or more of its shareholders (mainly Donald in the form of SJD Leisure Holdings, which has his shares in Madrox). It's impossible to know precisely what's happening until I've seen the accounts of all four companies (SAFC, Sunderland, Madrox and SJD). You really can't get the full picture looking at only one of the four in isolation.


Apology given. But if you're gong to have a user name and standpoint that renders you easily confused with Chris Weatherspoon that's going to happen.

All these separate entities GOM, its almost as if they’ve tried to make the situation illegible for anyone who doesnt ‘understand business’.

 

[mutley]

Daily mail Most sued newspaper in Britain I rest my case

So going off your logic because it's in the DM it must be shite, I hope you're correct as I'd be very concerned if what they are saying about Donald is correct.

 

[Lewberry pie]

Apology accepted.

You need to stop going on like such a baby mind, GOM has only ever given his opinion on anything that the owners have done and any wrongdoings if that is even shown to be correct when the accounts come out will be on the part of them, so stop taking it out on other people.

It's always worth pointing out that had Ellis short stayed in charge the parachute money would still have gone to him anyway.

 

[Helmerroids]

The whole outrage isn’t because of any monies owed or any debt left.

The outrage comes because these two came bounding in, criticises the whole of the running of the club, sold a dream and vision, lapped up the praise and fabricated a vision that they are so e sort of magical genius that deserve the worship (we’ve given the imbeciles their club back) when in reality they had no cash, employed complete idiots on the cheap at every level and were equally poor at running a club as the previous regime they criticised and it is argued that they are equally as poor as every other clown who have destroyed good clubs with massive fan bases including Bolton, Portsmouth, Leeds and Blackburn.

Now Donald is in hiding, like a little school boy bogging it up and the class have turned.
Blaming the fans
Metvan jumped earlier.

Two of the biggest clowns in our history, on a bigger level than mcmememy and hill.

Pretty much this I think. I was happy to go along with them last year, they had a realistic shot at flipping us, making a tidy profit which I wouldn’t have begrudged them.

It was a one shot scenario though, they failed and now have to find away to move on without seeking to profit, ensuring they do due diligence on who replaces them.

If they aren’t then they’re deserving of all the wrath that will head their way.

 

[sksk3021]

Pretty much this I think. I was happy to go along with them last year, they had a realistic shot at flipping us, making a tidy profit which I wouldn’t have begrudged them.

It was a one shot scenario though, they failed and now have to find away to move on without seeking to profit, ensuring they do due diligence on who replaces them.

If they aren’t then they’re deserving of all the wrath that will head their way.

If this £11m is true they are going to need about £30m to break even I think.

 

[stevo]

Is there anything new here that we didnt already suspect,or are we ranting over things to help us through the lockdown.As far as im concerned someone is going to get a club with great fans who are filled with fighting spirit for next to nowt.Thepresent owners will have to keep putting money in to a hopeless situation,cant see that going on for long.So they will have to give it away or they will default,either way we the fans will get behind the new owners and pick our great club up again.KTF.

 

[riffraff]

Why is this causing such a load of fuss now? We have known most of this for ages.
No idea why they weren’t just clear about the parachute payments from the start. Maybe it was Part of the deal with short is all I can think of.

Because the hard of thinking on here wont Believe bad news if it’s brought To them by people on here.

If you want us to be self funded then settle in for mid table league 1.
No club in the championship is self funded and competitive.
Brentford is an exception - but they had lots of capital injected before that point.

Bollocks.

 

[deleted user 785]

Or ye lot hev no alternative other than the Magesque hissy fit?

Revolution my arse, all fart nee shoite....

That argument is as pathetic as your zany persona

 

[riffraff]

Dreadful journalist.

Ryder, by extension the Chronicle, has singularly failed to hold Ashley to account down the years as should be the objective of the free press.

No, I’m just an avid consumer of business and sports who is looking forward to the inevitability of Mike Ashley’s other business ventures failing.

Newcastle United will not be the last time we see him as a distressed seller.

Won’t bother him. He’s 60iirc. He can’t spend the money he’s got and his houses are Worth more than NUFC.

 

[Almost Genius]

Well there's another Saturday ruined by SAFC... st least its some sort of normality

 

[Grumpy Old Man]

All these separate entities GOM, its almost as if they’ve tried to make the situation illegible for anyone who doesnt ‘understand business’.

It's pretty standard to be honest. The football and property sides of Sunderland were separated when Bob Murray launched the plc, and many fans had shares in what is now Sunderland Limited. Above Sunderland, it's about holding shares via companies, rather than as individuals, because that gives some tax advantages. So Madrox was created to hold the shares in Sunderland, while each of Donald, Methven and Sartori hold their shares in Madrox via companies (SJD, Dragon PR and Avesa Corp). Far from being designed to obfuscate, it's actually a pretty simple vertical structure. The need to look at all the accounts is simply to track the intergroup balances easily.

 

[Mirzam]

The idea that people of the North East do not understand business is beyond laughable, a lot of us run our own businesses and deal with the myriad complexities of finance/tax etc on a daily basis, they are panicking because they are being laid bare as southern chancers who thought they could make a quick buck and it has blown up in their faces.

 

[Jonny A]

The prospective buyers who have been sent the preliminary accounts as part of a 'buyers package' are saying it's £35m-£40m.

So asking price 35 mill, 15 mill put it by owners, they want to walk away with 20 mill profit of which 10 mill would go to paying fpp back for the loan, potential new owners would have also had to cover 20 mill missing but it’s been written off

 

[Lewberry pie]

If this £11m is true they are going to need about £30m to break even I think.

I think that's why ffp have put themselves into such a good position, he either sells for over 30 mill or he will eventually run it of money and he'll have to pass it over to them.

 

[stevo]

I think that's why ffp have put themselves into such a good position, he either sells for over 30 mill or he will eventually run it of money and he'll have to pass it over to them.

spot on again marra