"investment" confirmed as a loan

Donald doesn't /cannot pay the money back so the new owners take over and sell up to Ashley who flattens the SOL and opens a retail park which includes Sports Direct, House of Fraser, Debenhams etc.
 


From what I’ve seen it’s a debenture, so strictly speaking Methven was correct in saying it’s an investment as debentures sit on the “bottom” part of the balance sheet rather than within creditors. In the UK debentures are usually secured against assets. Nothing to see here effectively.

TBF, no shares exchanged hands and FPP gave the club money, wtf did people think it was going to be? A gift?

Again, @Grumpy Old Man will know better than be since he is/was a practicing accountant for many years whereas I jumped ship to the public sector within 2 years of qualifying.
 
Grumpy Old Man said:
I have no idea. It could be as simple as "Here's $12m - see how you manage that, and we'll talk again about your continuing involvement". I can't see any reason why a loan would come from them (from their point of view, not the club's), rather than a normal financial institution. I doubt it's the last we've heard of FPP as potential owners though.
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Could it be the loan is bearing no interest and no repayments are being made. I’m aware that it would be odd and why didn’t they just take a %. I’m wondering if some of the 12mil will not make its way to SAFC? Also to we know if SD, CM & JS have signed any kind of PG?
 
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They need to stop with talk ins and podcasts. Methvan saying there was no link to SAFC was clearly bollocks. As FPP would hand over 10 million quid without any form of security.

FPP clearly don’t want to be in the public eye. A proper, full time PR should be employed. Methvan and Donald create problems every time they speak.

We have 10 million quid which can be used on the academy and scouting. Areas we all agree need to be improved. It’s a good news story but Charlie sells as us fixing lifts.

Just put out well drafted communications on the website.
 
Coeus said:
I'm revoking your cabal card in place for a further positive conjecture one.

"They must" because thats what we want?
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They must because if all they wanted to do was loan money to us there would have been no reason to come for a match, or to do really detailed due diligence, or to set up a company with Sunderland in the name registered to the SoL. All the signs, from a neutral perspective, would point to these people being interested in owning SAFC. They've then made a loan instead but have inserted what (according to GOM) is an unusual clause that for non payment they can convert to equity, again no point putting that in there if they had no interest whatsoever in having equity now or in the future. So I think anyone being honest would suggest signs point to them wanting more involvement, I'm just concerned because of the wall of silence and because the charge over the stadium and academy could potentially be damaging. Also not happy at Methven saying there's no financial link to SAFC when to all intents and purposes there clearly is
 
Horace Cope said:
Would they be interested in owning a league one club? American owners have a hit and miss track record at premier League level imagine them trying to get their heads around the complexities of lower league fixture schedules lack of TV money and tin pot cups that you get entered in

This really is shit or bust. We don't go up then we can't repay it. We can't repay it then we are at their mercy. It isn't easy to make money owning a football club. I can't stress that enough
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So do you think they after building a few link villas in eglinton st to get their money back.These lads are at the top of their game they are after getting club for next to nowt and will do if present owners dont do well in jan.
 
Might as welL face the fact that the club is dead. Leadbitter crying tells you everything you need to know. He’s witnessing it being taken apart piece by piece first hand.
 
Shieldsman said:
The talk-in with Metven next Friday night could be ‘interesting’.
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It'll get pulled. He'll spin some yarn about how he can't attend talk ins for fear of his families safety.

The worrying thing for me is this could lead to a scenario where we are renting the ground and training ground of a company with no affinity to the club
 
Guinness Guzzler said:
They must because if all they wanted to do was loan money to us there would have been no reason to come for a match, or to do really detailed due diligence, or to set up a company with Sunderland in the name registered to the SoL. All the signs, from a neutral perspective, would point to these people being interested in owning SAFC. They've then made a loan instead but have inserted what (according to GOM) is an unusual clause that for non payment they can convert to equity, again no point putting that in there if they had no interest whatsoever in having equity now or in the future. So I think anyone being honest would suggest signs point to them wanting more involvement, I'm just concerned because of the wall of silence and because the charge over the stadium and academy could potentially be damaging. Also not happy at Methven saying there's no financial link to SAFC when to all intents and purposes there clearly is
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I disagree mate, I think any reasoning to suggest they do is heavily laced with our hopes.

I think if you look objectively at everything that has happened and cut out everything that was made up, I can't see any other motivation for FPP than financial gain.
 
Guinness Guzzler said:
Exactly. On the one hand we can't really be too negative because these people have set up a holding company etc so you'd have to assume they're interested in owning the club. This is strengthened by the clause that they can convert the loan into equity if it isn't paid and by the fact that they have prevented Donald getting other investment without their say so. On the other hand it is also secured against club assets so, given the lack of information, we can't discount the potential negatives of that regardless of how unlikely they might seem. Add in Methven pretty much lying by saying there's no link to SAFC when it is literally secured against the ground the club stands on and it's no surprise there's an element of unrest. They badly, badly need some positive results!
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I got a libel warning on here for saying that the owners can’t be trusted. If one of our owners repeatedly and publicly states that the financial arrangement is private between Madrox and FPP and not SAFC but then a legal charge is placed on the clubs assets, how can we possibly say their word can be trusted? In no way, shape or form can any of these development be described as clear or transparent. The communication is at very, very best utterly misleading
 
Why are people acting as if this so scandalous? Businesses borrow money all of the time to improve their infrastructure. Stewart was open when he came to the club that this method of injecting short term cash into the club was always an option. The problem here is that far too many people got carried away with newspaper reports and Reivers fantasy stories about his make believe mates. This money will help the club short to medium term and the debt isn't on the clubs toes. People should focus more on the alarming slide we're seeing on the pitch as that is a real worry.
 
I seriously doubt the Americans will fuck the club over by flattening grounds and academies, etc.
More likely it’s a shrewd move to have the cowboys over a barrel down the line when they inevitably can’t pay it back and FFP can buy the ‘rest’ of the assets on the cheap and take full ownership.

Whatever happens, it looks increasingly like SD and CM are the dodgepots that people have been accusing them of.
I’m far more worried about what damage they’ll do to our club than the motives of FFP.
 
Lewberry pie said:
Everyone is blowing this waaay out of proportion, this is exactly what you'd expect to happen with them taking control of the club at some point.
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It may very well end up being a positive. But if they don’t takeover, we are left with owners who consistently mislead us.
 

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