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New buyers put off by £20 million hole in accounts

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sir rowell cummins said:
I’ve just come to this thread. I got pissed at the top of a hill in the sunshine yesterday. Not really sure what’s going on. Could you sum up the thread and what’s happening in a rational factual way? I trust you to do it.
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The last set of accounts for SAFC have been leaked to the Mail and the Times (the Echo, true to form, have also published, but essentially leeching). From the draft they've seen, it appears that the intergroup balance between SAFC and Madrox, of around £20m, has been written off. Those are the bare facts. The rest of the thread is about why, what does it mean, and when's the lynch mob.
 
sksk3021 said:
But we should have the parachute payments for this year aren’t they about £15m? That should at least double our revenue. I know it’s one off but should leave us in a pretty strong position.
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Part of that was used in 18/19 (that's what the Close Brothers loan was about). The resetting of the cost base and wage bill will be budgeted to treat the parachute as non-recurring income, and will have been used to cover costs still above the desired recurring level. All cost-cutting is a gradual process if you think about it. If you annualise the pay of all your employees at the start of the year at £20m, and the end of the year as £10m, you won't actually have saved £10m that year. The actual wage bill will be somewhere between £10m and £20m depending on when employees leave. If those employees are players, that's usually right at the end of the year, so there are virtually no savings in the year you do it.
 
Jonny A said:
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
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There's no evidence that they've used the 10 million so that could go back leaving them with 20 million profit.
 
Grumpy Old Man said:
Part of that was used in 18/19 (that's what the Close Brothers loan was about). The resetting of the cost base and wage bill will be budgeted to treat the parachute as non-recurring income, and will have been used to cover costs still above the desired recurring level. All cost-cutting is a gradual process if you think about it. If you annualise the pay of all your employees at the start of the year at £20m, and the end of the year as £10m, you won't actually have saved £10m that year. The actual wage bill will be somewhere between £10m and £20m depending on when employees leave. If those employees are players, that's usually right at the end of the year, so there are virtually no savings in the year you do it.
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Completely forgot about the close brothers loan not sure how!
I think they said they have recurrent costs down to low £20m maybe even lower now. So probably not too far off break even on an ongoing basis from next season.
 
"However, the accounts we have seen - which the club have delayed publishing"

why would a business delay publishing their accounts?
Doesn't that get a fine from companies house?
Any tax partners on here that can explain the possible reasons why?
dodgy as F in my eyes.
 
Lewberry pie said:
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.
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But he had invested his own money previously, so would be getting his own money back.
 
s1black2000 said:
"However, the accounts we have seen - which the club have delayed publishing"

why would a business delay publishing their accounts?
Doesn't that get a fine from companies house?
Any tax partners on here that can explain the possible reasons why?

dodgy as F in my eyes.
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They've take advantage of the government scheme that allows the delay of up to three months
 
Grumpy Old Man said:
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.
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Good reply. Maybe paranoia on my part.
 
JC91 said:
They've take advantage of the government scheme that allows the delay of up to three months
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for what reason? the office is closed so the accountants can't complete the year end? I guess that is a legit reason.

I will give them the benefit of the doubt, as a lot of companies are not set up to work remotely through no fault of their own.
 
s1black2000 said:
for what reason? the office is closed so the accountants can't complete the year end? I guess that is a legit reason.

I will give them the benefit of the doubt, as a lot of companies are not set up to work remotely through no fault of their own.
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They don't need a reason, they've taken advantage of something the government has offered. That's it.
 
Lewberry pie said:
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.
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Grumpy didn't just give his opinion though, he personally attacked me and questioned my motives just for pointing out that this was all possible.

That's why he apologised and why I accepted it. I don't think I've acted unreasonably at all.
 
Flea Market Trader said:
I would normally be all,over this as I have and will always be in the Donald out camp, however with there currently being a global pandemic knocking about that has killed ( by sketchy at best ) figures upwards of quarter of a million people,,,,one of my best friends included, I have to say I really don’t give a toss to be honest. Football has been exposed for what it is during this pandemic. I don’t care for it.
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Sorry to hear that mate.
 
MADBOB THE MAKEM said:
1st off its not £20 million its about £15 million bad enough but I did point that out last week. do not believe all these mag journos put out.
SD has agreed to cover it whats the problem stop being a bunch of wet farts. its their business it does not affect the ongoing investment.
They new guys knew about the deficit so just chill ffs
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But ithe was the price and the accounts that stopped the takeover from FPP happening. What happened to your mate doing what's best for the club instead of trying to line his pockets?
 
MADBOB THE MAKEM said:
1st off its not £20 million its about £15 million bad enough but I did point that out last week. do not believe all these mag journos put out.
SD has agreed to cover it whats the problem stop being a bunch of wet farts. its their business it does not affect the ongoing investment.
They new guys knew about the deficit so just chill ffs
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Every single sentence in that post is incorrect. That's some going.
 
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