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Press Conference

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hank williams said:
Why :confused:
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I dont know i just get an uneasy feeling about it. My logic is this. He is alluding to a budget of 5m max judging solely on my interpretation. If, and that is a big If he had the funds to take us to where we belong (top half of the prem) then he wouldnt be saying things like that imo. Plus the other bloke pretty much ruled out the background investors that we speculated about. I worry that he thinks he can walk into a league one club, work hard, run us like a normal business and achieve success. Almost like Bob Murray without the local connection, yet in 2018. This is where my apprehension comes from.

However, he almost certainly knows more about being a chairman than I do, and knows a shit tonne more about SAFC behind the scenes than I do. I'm apprehensive but I will fully back him until I see him making errors to our detriment. I'm not certain he has the cash for the job, but until he starts actually doing the job I would be a total clown to judge him for it.

Reiver said:
Really, are you normally a bit of a worrier or was something said that you just didn't like?
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See above. Although I am a natural pessimist I must admit. My go to thought process is to start to pick the holes in things just in case there is a way to prevent mistakes. My mates probably think im a miserable old prick come to think of it :lol:
 
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RedFlag1308 said:
I dont know i just get an uneasy feeling about it. My logic is this. He is alluding to a budget of 5m max judging solely on my interpretation. If, and that is a big If he had the funds to take us to where we belong (top half of the prem) then he wouldnt be saying things like that imo. Plus the other bloke pretty much ruled out the background investors that we speculated about. I worry that he thinks he can walk into a league one club, work hard, run us like a normal business and achieve success. Almost like Bob Murray without the local connection, yet in 2018. This is where my apprehension comes from.

However, he almost certainly knows more about being a chairman than I do, and knows a shit tonne more about SAFC behind the scenes than I do. I'm apprehensive but I will fully back him until I see him making errors to our detriment. I'm not certain he has the cash for the job, but until he starts actually doing the job I would be a total clown to judge him for it.
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Selling clubs will almost certainly be expecting Sunderland to come calling, agents will be Googling the SOL and players hoping for a move ....

.... IMO the very last thing we should be doing is wave wads of cash around.

Lets keep it tight, balance the books and get the club right for once.
 
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Reiver said:
Selling clubs will almost certainly be expecting Sunderland to come calling, agents will be Googling the SOL and players hoping for a move ....

.... IMO the very last thing we should be doing is wave wads of cash around.

Lets keep it tight, balance the books and get the club right for once.
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I understand the way of thinking I really do, and to be honest i can get on board with it. But after 4 years of mid table championship football I suspect we will start to want a bit more.

If it is just a ploy to deceive selling clubs of our budget, then hats off to him, he is doing the right thing.
 
Reiver said:
Selling clubs will almost certainly be expecting Sunderland to come calling, agents will be Googling the SOL and players hoping for a move ....

.... IMO the very last thing we should be doing is wave wads of cash around.

Lets keep it tight, balance the books and get the club right for once.
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That’s exactly how I see us moving forward.
 
Reiver said:
Selling clubs will almost certainly be expecting Sunderland to come calling, agents will be Googling the SOL and players hoping for a move ....

.... IMO the very last thing we should be doing is wave wads of cash around.

Lets keep it tight, balance the books and get the club right for once.
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Absolutely spot on mate. If the two of them had sat there waving big wads of cash saying we are going to blow the division away as we can outgun everyone financially - well, that would have been a disaster
I liked what they had to say, I’m in!
 
Parachute payments add up to £49m.
Price for shares is £40m, though I'm not clear if any interest is being charged on the deferred part, in which case it could be a little higher.

Basically Ellis will take the majority of the parachute payments.

The running costs of the club will exceed its income next year, with salaries still needing to be paid out for the rotten core. Once they are gone/paid off there is a chance of getting on an even keel finance wise but there will be very little spare cash left of that £9m by the time that's done.

So the question is how much of their own cash are they going to put in/how much will the club borrow?

I expect the answer is not much but then again a debt free SAFC will get out of league 1 and into the Championship at some point - we're going to have more income than any other club in the division due to our bigger fanbase...

So the real test is what happens then...
 
andymcnish said:
Parachute payments add up to £49m.
Price for shares is £40m, though I'm not clear if any interest is being charged on the deferred part, in which case it could be a little higher.

Basically Ellis will take the majority of the parachute payments.

The running costs of the club will exceed its income next year, with salaries still needing to be paid out for the rotten core. Once they are gone/paid off there is a chance of getting on an even keel finance wise but there will be very little spare cash left of that £9m by the time that's done.

So the question is how much of their own cash are they going to put in/how much will the club borrow?

I expect the answer is not much but then again a debt free SAFC will get out of league 1 and into the Championship at some point - we're going to have more income than any other club in the division due to our bigger fanbase...

So the real test is what happens then...
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The foreign investment comes in.
 
andymcnish said:
Parachute payments add up to £49m.
Price for shares is £40m, though I'm not clear if any interest is being charged on the deferred part, in which case it could be a little higher.

Basically Ellis will take the majority of the parachute payments.

The running costs of the club will exceed its income next year, with salaries still needing to be paid out for the rotten core. Once they are gone/paid off there is a chance of getting on an even keel finance wise but there will be very little spare cash left of that £9m by the time that's done.
It is 38M this season and 21M next season for a start which is 59M according to our resident accountant @Grumpy Old Man .
So the question is how much of their own cash are they going to put in/how much will the club borrow?

I expect the answer is not much but then again a debt free SAFC will get out of league 1 and into the Championship at some point - we're going to have more income than any other club in the division due to our bigger fanbase...

So the real test is what happens then...
Click to expand...
 
andymcnish said:
Parachute payments add up to £49m.
Price for shares is £40m, though I'm not clear if any interest is being charged on the deferred part, in which case it could be a little higher.

Basically Ellis will take the majority of the parachute payments.

The running costs of the club will exceed its income next year, with salaries still needing to be paid out for the rotten core. Once they are gone/paid off there is a chance of getting on an even keel finance wise but there will be very little spare cash left of that £9m by the time that's done.

So the question is how much of their own cash are they going to put in/how much will the club borrow?

I expect the answer is not much but then again a debt free SAFC will get out of league 1 and into the Championship at some point - we're going to have more income than any other club in the division due to our bigger fanbase...

So the real test is what happens then...
Click to expand...

No he won't. That money is the club's, not the owners', and, in the absence of debt, they have no legal way of getting it out. Short will be paid £40m by them. Short has security over them; all that means is that he can take the parachute payments if they default. They will probably have to inject a small amount (well under £20m) to fund transfers and running costs, but will hope to have to put in less than that.
 
Grumpy Old Man said:
No he won't. That money is the club's, not the owners', and, in the absence of debt, they have no legal way of getting it out. Short will be paid £40m by them. Short has security over them; all that means is that he can take the parachute payments if they default. They will probably have to inject a small amount (well under £20m) to fund transfers and running costs, but will hope to have to put in less than that.
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What are you talking about?
He'll acquire the shares via a holding company and then lend the parachute cash up to it from SAFC so it can pay off Ellis.
The dates for payment of the deferred price by the holding company will be just after the parachute payments come in.

Or the charge on the parachute payments from SAFC will be a third party charge where it directly takes on the debt and then is owed it from the holding company when it pays out (much the same result).

Ellis has left £9m of the parachute cash in for running costs. As I said that will probably pay off Rodwell and Cattermole etc.

The club is clean and should be sustainable but will have very little cash by Champo standards. It should be enough for League 1 mind...
 
andymcnish said:
What are you talking about?
He'll acquire the shares via a holding company and then lend the parachute cash up to it from SAFC so it can pay off Ellis.
The dates for payment of the deferred price by the holding company will be just after the parachute payments come in.

Or the charge on the parachute payments from SAFC will be a third party charge where it directly takes on the debt and then is owed it from the holding company when it pays out (much the same result).

Ellis has left £9m of the parachute cash in for running costs. As I said that will probably pay off Rodwell and Cattermole etc.

The club is clean and should be sustainable but will have very little cash by Champo standards. It should be enough for League 1 mind...
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According to Donald we have cash most championship clubs would be envious of
 
andymcnish said:
What are you talking about?
He'll acquire the shares via a holding company and then lend the parachute cash up to it from SAFC so it can pay off Ellis.
The dates for payment of the deferred price by the holding company will be just after the parachute payments come in.

Or the charge on the parachute payments from SAFC will be a third party charge where it directly takes on the debt and then is owed it from the holding company when it pays out (much the same result).

Ellis has left £9m of the parachute cash in for running costs. As I said that will probably pay off Rodwell and Cattermole etc.

The club is clean and should be sustainable but will have very little cash by Champo standards. It should be enough for League 1 mind...
Click to expand...

That's of extremely dubious legality, and would totally screw up any efforts to run the club in any way, shape or form. The reason they have asked for the deferral is to ensure that they can put sufficient working capital in. To remove cash form the business makes no sense whatsoever. With the cost base, it would be insolvent within 12 months even in League 1 if they did what you're suggesting. SBC have had a deed of assignment over PL money for the last 4 years; they've all stayed with the club. why are you so keen for this to go tits up?
 
Why would we go tits up?

£9m to cover next year's losses and/or paying off the rotten core.
Left with a young squad on League 1 salaries.
20,000 odd season ticket income.
Plus whatever cash we can get for the wantaways.
No debt.

That's a lot better financial picture than about 90% of football league clubs.

I suppose it's possible that Donald or some of his mates have £40m in their back pockets but otherwise it's coming out of the parachute payments one way or another.

And it has to be legal for SAFC to support its own purchase or Ellis couldn't have beem able to take a legal charge for the share sale price secured on the parachute payments (which we know he has).
 
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