• The first stage of the forum upgrades has now been completed but they remain in a degraded state with some features missing, normal posting/reading should now be possible.
    Please read this thread for more details.
    New user registrations are currently disabled.
    Some other features of the forum are also currently disabled.

New buyers put off by £20 million hole in accounts

Status
Not open for further replies.
Grumpy Old Man said:
No, it's the opposite. There was an amount owed by Madrox to Sunderland for the balance of the parachute payment. This has been written off in the books of Sunderland, meaning that balance no longer exists. Capital injections after the write off crate an amount owed to Madrox by Sunderland. Having the balance that way round could actually be more attractive to a buyer, because it would make anything they put in potentially recoverable. If they were simply paying down an amount already owing to the club, that wouldn't be the case.
Click to expand...
Ah didn’t think of it that way, cheers GOM
 

s4fc said:
Someone posted a rumour on my social media so came on here to see if was anything and saw doon toon's post.. Whether they talking about the same thing, i dont know!
Click to expand...
We’ll clutch any straws right now...
scott934 said:
Might as well have the rumour on here if it's on social media.
Click to expand...
Genuinely no idea what this social network bollocks is, penny for a pound it’s reidy & Micky gray...
 
Last edited:
Stevie said:
There is a worldwide virus where thousands of people are dying every day. We will probably be locked in our homes for most of the next year or so and some people might be lucky to have a job to go back to after that. There will be no Footy with fans allowed for a season and we may go bust due to most of our income coming from match revenue. The two saviours who took over the club are actually lying twats who have pinched 20 million quid of the parachute money for themselves. And sold 20% of the club to Juan Sartori for a quid so they could pretend to the League that they had any money.

Oh and the Mags are soon to be taken over by the richest investment group in the world.

That just about covers it.
Click to expand...
Cheers 😁
 
Grumpy Old Man said:
No, it's the opposite. There was an amount owed by Madrox to Sunderland for the balance of the parachute payment. This has been written off in the books of Sunderland, meaning that balance no longer exists. Capital injections after the write off crate an amount owed to Madrox by Sunderland. Having the balance that way round could actually be more attractive to a buyer, because it would make anything they put in potentially recoverable. If they were simply paying down an amount already owing to the club, that wouldn't be the case.
Click to expand...

they would still have to stump up to put that amount in though right (the 35m asking price), it just reduces some risk/exposure. is that what you're saying...???
 
doon toon said:
Think a lot of posters might be in for a pleasant surprise in the not too distant future !! I haven't posted for a long time but felt the need to.
Click to expand...

I can only think of one way this could be a positive (correct me if I'm wrong).

Getting rid of the obligation for Madrox to pay the £20m back to Sunderland means that, if someone just bought Madrox, they wouldn't be faced with £20m they need to repay. Of course, someone could buy Madrox and cancel the debt themselves, but it would look bad for the fan base if that was one of their early actions, they'd be better getting the current owners to do it.

So, someone buys Madrox instead of Sunderland. That gets rid of Donald and co, it also keeps FPP around (the loan from FPP is to Madrox). They'd have to agree to it, but if they aren't happy at how Donald is doing, they might be perfectly happy for someone else to take it on and have a go. If its someone who could afford to fund a push to the championship they might be happy enough having FPP who might give favourable loans if they see we're being well run, and who might take us on for a good profit if we get into or near the Premier league.

In theory this would be good for everyone. Not saying that's what's happening like, but it's a possible positive spin on this move. It's a shit move if you buy Sunderland and suddenly there isn't £20m coming in, but it's canny if you buy Madrox.

Some financially minded people might be able to tell me this is all wrong! And to be honest I don't know why anyone would leak it in that case, but it's the only possible positive scenario I can see
 
Guinness Guzzler said:
I can only think of one way this could be a positive (correct me if I'm wrong).

Getting rid of the obligation for Madrox to pay the £20m back to Sunderland means that, if someone just bought Madrox, they wouldn't be faced with £20m they need to repay. Of course, someone could buy Madrox and cancel the debt themselves, but it would look bad for the fan base if that was one of their early actions, they'd be better getting the current owners to do it.

So, someone buys Madrox instead of Sunderland. That gets rid of Donald and co, it also keeps FPP around (the loan from FPP is to Madrox). They'd have to agree to it, but if they aren't happy at how Donald is doing, they might be perfectly happy for someone else to take it on and have a go. If its someone who could afford to fund a push to the championship they might be happy enough having FPP who might give favourable loans if they see we're being well run, and who might take us on for a good profit if we get into or near the Premier league.

In theory this would be good for everyone. Not saying that's what's happening like, but it's a possible positive spin on this move. It's a shit move if you buy Sunderland and suddenly there isn't £20m coming in, but it's canny if you buy Madrox.

Some financially minded people might be able to tell me this is all wrong! And to be honest I don't know why anyone would leak it in that case, but it's the only possible positive scenario I can see
Click to expand...
I'm in GG
 
Not convinced by this write off of the £20m now being couched as a good thing. When we talked about the parachute payments in the past the received wisdom was that it would provide an easy investment mechanism for any new owners - one that would probably circumvent scmp. Now we’re talking about the best scenario being owners making a loan to the club - perhaps with interest - that would be recoverable at some point. Debt. Might be good for new owners but most certainly isn’t ideal for Safc or the fans. The write off is not a good thing. It simply isn’t. It may not prevent future investment - but it makes it less favourable for the club and the fans. Don’t for a minute pretend that this is Donald doing the club a favour.
 
Last edited:
Dave_39 said:
interesting read on wise man say

You must be logged on to see external links
Click to expand...
Lie after lie forensically exposed. Good article.

The absence of fan generated revenue going forward has to really crystallise the situation. I am not sure the football club as a business is a going concern?

There seems to be some hope that the American lenders will call in the debt and assume control of the club. Ultimately, if there is no revenue why would the American’s want the uncertainty, the hassle and the liabilities of a loss making business?

Perhaps they are more likely to insist on the property as security on the loan in a sale and leaseback deal? At least the property has a tangible worth rather than a failing business.
 
Status
Not open for further replies.
Back
Top