Donald Statement

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Church said:
Well my default position is to see the positive and assume most people are decent rather than the opposite, so I give everyone the benefit of the doubt from the outset. I make no apologies for that.
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From the outset? You made the post 1 month ago he has been in charge nearly 2 years
 
There's no quick way out of this mess is there. If any possible new owners are being put off by a £20m 'hole' early on, then they probably aren't exactly flowing with cash either in which case us shuffling from owner to owner, none of which has deep pockets, could see us replicate Leeds for a decade where a succession of awful owners came on board and held the club back.
marco popas said:
From the outset? You made the post 1 month ago he has been in charge nearly 2 years
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Easy tiger. I thought he came across as genuine from the outside and the STID reflected well on him. We were on the brink of extinction under Short and he had cut lots of the rubbish away, so we genuinely cannot say he's been a complete disaster, but looking forward he doesn't look like the right man for us.
 
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Church said:
There's no quick way out of this mess is there. If any possible new owners are being put off by a £20m 'hole' early on, then they probably aren't exactly flowing with cash either in which case us shuffling from owner to owner, none of which has deep pockets, could see us replicate Leeds for a decade where a succession of awful owners came on board and held the club back.
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Why should any new owner pay Madrox's £20m loan back to the club? That could be £20m be invested into squad, academy, facilities etc.

Madrox took out the loan and SD said he'd drop feed it back into the club. He hasn't and has written it off.
 
Has anyone at the club made a statement regarding the news story yesterday?

You'd think if it was bollocks, they'd be straight out putting the record straight.

We've had the wool pulled over us from the start
 
Black Cat Gypsy said:
Why should any new owner pay Madrox's £20m loan back to the club? That could be £20m be invested into squad, academy, facilities etc.

Madrox took out the loan and SD said he'd drop feed it back into the club. He hasn't and has written it off.
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No they shouldn't, but my point is if the new investors were big hitters then they would find a way of sorting some kind of deal rather than this being a breaker.
 
Church said:
No they shouldn't, but my point is if the new investors were big hitters then they would find a way of sorting some kind of deal rather than this being a breaker.
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Maybe they have and now they've got Donald cornered. He wanted £35m and didn't want to repay the loan. FPP might get the club for as little as £10m.
 
Black Cat Gypsy said:
Maybe they have and now they've got Donald cornered. He wanted £35m and didn't want to repay the loan. FPP might get the club for as little as £10m.
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What were the conditions of the fpp loan? When is it due to be repaid and what has to happen for fpp to get the club? Any other stipulations?

All I remember is snippets Donald said but you can't really take that as gospel now can you
 
pRICK said:
What were the conditions of the fpp loan? When is it due to be repaid and what has to happen for fpp to get the club? Any other stipulations?

All I remember is snippets Donald said but you can't really take that as gospel now can you
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Going by what Donald said, if they fail to pay back the loan FPP get the club. That's all we know.
 
Black Cat Gypsy said:
Going by what Donald said, if they fail to pay back the loan FPP get the club. That's all we know.
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Would this be something that would show up in the accounts? What I mean is, when the accounts come out will it reveal any info on the terms of the loan or just that it exists? I'm no accountant or financial/business expert so have no clue
 
Black Cat Gypsy said:
Why should any new owner pay Madrox's £20m loan back to the club? That could be £20m be invested into squad, academy, facilities etc.

Madrox took out the loan and SD said he'd drop feed it back into the club. He hasn't and has written it off.
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That £20m is nothing to do with a loan. The balance was created by the movement of cash from SAFC to Drumaville via Madrox. The story on the repayability or not of that balance has changed many times. In essence, as it was club money used to repay a club debt (albeit one cosmetically detached from the club itself), it's not automatically repayable. It's also worth noting that, even if the balance is written off, it doesn't preclude Madrox, or any new owner, from putting in. The only change is that that would create a balance owed to the holding company, rather than reducing a balance owed by it. It's also not a "black hole" in the accounts, in the sense of a sudden realisation of costs resulting in unplanned cash outflows. The Alvarez case was a proper black hole. This write off has no effect on current cash flows or trading performance, and to that extent it's more of a messy adjustment arising from the hamfisted setup of the original deal.
pRICK said:
Would this be something that would show up in the accounts? What I mean is, when the accounts come out will it reveal any info on the terms of the loan or just that it exists? I'm no accountant or financial/business expert so have no clue
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All those details are in the charge documents already filed. The loan will only show in Madrox's accounts - Sunderland haven't borrowed anything. They may be a note stating that certain assets have been used as security for a loan to another group company.
 
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