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New buyers put off by £20 million hole in accounts

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scott934 said:
Why would the club hire a CEO a week before the club is sold? Especially one that is mates with Methven. I'm not falling for this again.
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The only thing I can point to is that since Rodwell was hired it has become clear that safc are not gonna be promoted (though that was as clear as day before hand imo. Maybe that has brought things into sharp relief. Maybe the leak is bitterness from a spurned suitor. I’m not all in by any means but there’s a lot of smoke about. Hopefully there’s a fire somewhere.
 
JamesTu said:
I’m sorry - maybe I’m stupid and I don’t understand - but this doesn’t make sense.
That’s under the assumption you purchase Madrox.
If you purchased SAFC from Madrox- they would still be on the hook for repaying the money they owe to the club.
Why remove a legal obligation to inject cash into an asset unless you did not want to inject it?
I’m intrigued as to how you are slanted this as a positive move when all others are not- even a football finance lecturer on Talksport was extremely negative.

Interesting, the footballers most likely to want to play in the north east as those from the north east.
Imagine if we had good young players coming from, who we gave a chance and nurtured together.
I suppose, someone will say it’s a positive that we sell anyone decent at age 16, as we don’t know if they would be good at age 20, we don’t have to pay their wages and we get an immediate cash injection. 🙃
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If anyone purchased Sunderland, the balance, if in place, would have had to be dealt with in the purchase price, so Donald would actually require a larger sum to cover that repayment on top of his asking price. In other words, any new owner would have to commit to an immediate cash injection into Sunderland on top of what they paid for the shares, in a way that they'd be entirely unable to recover. However, I'm far from convinced that it's actually legally enforceable because of the nature of the transaction; equally, I'm far from convinced that it isn't. It's got expensive law suit written all over it.

Let's try an put this into numbers. Looking at the amount that Donald has put in pre-write off and pre-FPP loan, comes to about 18m (covering the shares and £5m of the parachute put back in). So that's his baseline for the shares. Add on to that the £20m he needs to repay the debt, and you get £38m. For that, the buyer actually gets shares valued at £18m, and a club not owed money with, effectively, his cash in there in a way that can't be recouped from a future sale. That, to me, is deeply unattractive.

With the debt removed (and again, ignoring post write-off movements), Donald could break even on an £18m sale, and the new owners could put capital in as and when if a way they could get back in future. Far more attractive to the buyer. Subsequent movements of £2.5m more coming in as loan, and the FPP loan coming in as share capital have now moved Donald's break even number up to around £30m, but the principle still holds.

Now, it's indisputable that the first scenario is better from the fan's perspective. The club gets all the cash. But the owner is left having paid around £40m for a club worth half the amount. It's not so good for the club, but it could improve the chances of the club being moved on.
 
Grumpy Old Man said:
The sad truth is that Donald is one of the worst business communicators I've ever seen. He's perfectly capable of contradicting himself in a single sentence. He doesn't prepare, he is (to use a phrase beloved of civil servants about ministers) not on top of his brief, and has an alarming habit of extemporising under the slightest pressure. Frankly, I'd never let him near a microphone.
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Probably why he has disappeared under a stone.
 
doon toon said:
The news I have heard is nothing to do with Bracewell and 2 wealthy businessmen, but it relates to the yanks with the Dell connection, and a deal being very close to sign off. If I am wrong so be it, but just what I was told yesterday hence my previous post. If its correct then something could happen pretty soon. Oh, and the purchase price is now £10 million.
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gerrra way man , hady way and shite man ya don't say, Brace is to busy doing a property portfolio and one of the 2 business guys is guess who, ??
 
Mayflower said:
If SAFC is being offered for sale at £35/40 million, does that include the Stadium of Light which is owned by Madrox as part of the Short deal. How much is the stadium worth? it cost £23m to build it and it must be worth a lot more now. In any pending sale of the club, will the stadium be part of the sale as it was when Madrox brought the club or will Madrox retain ownership and then lease the stadium of light to any new owners of the club? It’s a genuine question as many clubs pay rent to play at their grounds. Oxford United was sold as a club and their stadium was not included in the sale and they pay rent to play there. I believe it is the same with Eastleigh, they no longer own the ground, but I could be wrong.
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What? The stadium of light is owned by the club. There are two companies. The first, Sunderland Ltd, owns the stadium and other properties, and this is the company 100% owned by Madrox. Sunderland Ltd is the old Sunderland plc, set up by Bob Murray in the 1990's when many fans bought shares in it. Sunderland Ltd owns 100% of The Sunderland Association Football Club Limited, which runs the trading operations and owns the AoL. Madrox's only asset is the shares in Sunderland. Your post contains a ttruly frightening level of misinformation.
 
Almost Genius said:
Oh here's mystic meg to get the attention back
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this whole thing about the owners and investment, debt, etc is mostly driven by mags who think the more they poison us as a fan base the worse it will get, wake up we are being driven by mags in these post
this forum has had its share of bad times but im afraid it will not get better for a while.
 
mr chuckles said:
Testicular torsion occurs when a testicle rotates, twisting the spermatic cord that brings blood to the scrotum. The reduced blood flow causes sudden and often severe pain and swelling. Testicular torsion is most common between ages 12 and 18, but it can occur at any age, even before birth.
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I once called SBC that on here cos he is a twisted knacker. I think he just agreed with me
 
Rickybilly said:
Is it me, or is this arse about face!?! If Sunderland Football Club now shows a debt to Madrox surely the current or future owners can further asset strip and use this as a vehicle to take more money out of the club? Sorry if I'm being thick.
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Any such debt acquired by a new owner would be, at most, £2.5m (the amount that seems to have come into the club post write-off that's not in the form of shares. Any further loans would be cash they put in themselves.
 
MADBOB THE MAKEM said:
this whole thing about the owners and investment, debt, etc is mostly driven by mags who think the more they poison us as a fan base the worse it will get, wake up we are being driven by mags in these post
this forum has had its share of bad times but im afraid it will not get better for a while.
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Jesus wept bob has the wind changed direction again? We were getting some jaw dropping news this time last week, now it’s turned to shit.
 
Boldoneye said:
Might be wrong but I thought the parachute payments could only be paid to the club itself. so how did Madrox end up with the para money?
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They didn't. It passed through Madrox in a matter of milliseconds on its way from SAFC to Drumaville to repay the £25m of SBC loan Short had moved there (aren't electronic transfers wonderful?). Those few millisecinds created the balance that's caused all the fuss,
 
scott934 said:
Why would the club hire a CEO a week before the club is sold? Especially one that is mates with Methven. I'm not falling for this again.
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This is what I think too.

The only way this makes sense is if Donald has completely shit the bed in the last 24hrs since the story broke and reaction was heard and somehow, they've all managed to get a complex deal with new due diligence done in that time. It doesnt sound probable when you think of it like that, lads.
 
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