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The real story of Sunderland's takeover

REVEALED: The REAL story of Sunderland's takeover - Stewart Donald and Charlie Methven used parachute payments to buy Black Cats with only £5m of their own cash... a year on they could pocket £40m by selling the club

https://www.dailymail.co.uk/sport/football/article-7059561/The-real-story-Sunderlands-takeover-Donald-Methven-pocket-40m-selling-again.html

Comments

  • There are some dodgy b*******s in football. Nice profit though if they sell. Shame they are going to be in League One again next season though.
  • The EFL was aware and still they passed the ownership criteria.

    Who'd have thunk it.
  • The EFL shouldn't allow that , there are some right slime balls involved in football
  • sounds like a bloody good deal to me

    pay short 32mil of parachute money and wipe 150mil debt - new owners seem to be welcomed by supporters - win win

    It normal to use company assets to fund any acquisition 
  • I suppose the EFL considered that FA parachute money is 'guaranteed' funds.

    Using it this way, doesn't seem what it's supposed to be intended for.


  • edited May 2019
    So Sunderland as good as bought itself.

    The new owner Donald borrows £5M and the remainder comes from Sunderland's own account from parachute monies.

    Donald (and Methven) effectively buy for £5M, as that's all they put in and now are looking to sell for £40M.

    I don't understand how that is legal.

    The main reason many people want to buy a football club is for nefarious means, such as above or paying yourself a massive salary or dividend.

    Whilst we nearly all have a strong dislike for RD, as far as we can tell, he hasn't done anything crooked, in relation to Charlton.
  • This looks like any other leveraged buyout. Use the company’s assets/cash flows to finance the acquisition. Happens all the time. I believe 16m of our debt is prior acquisition costs loaded onto the club. 

    Effectively they bought the club for 5m, and the club paid Short 32m to write off $150m in debts. Not a bad deal. 

    The real ear question is why they think they can get 50m for a club with a limited cash flow and no doubt losing money. Do they have the money to cover the losses? Or are they trying to get out before the losses are to big to sustain. 
  • edited May 2019
    They've already sold part of the club (obviously to fund the losses).

    NB It was a good deal for the club with Short writing off the £150M less the £32M he got from the club's parachute money.
    It was an even better deal for Donald & Methven if they can get anything over £5M.
  • American businessman Mark Campbell is in line to become the new majority shareholder of Sunderland, taking a 74 per cent stake in the club.

    Sportsmail can reveal that the deal would see Campbell acquire 64 per cent from owner Stewart Donald and 10 per cent from Uruguayan investor Juan Sartori.

    That would leave Donald and Sartori each with a 10 per cent stake, and executive director Charlie Methven is likely to retain the six per cent share he was given by Donald for brokering the purchase of the club from Ellis Short just 13 months ago.

    https://www.dailymail.co.uk/sport/football/article-7100729/Sunderland-owner-Stewart-Donald-sell-shares-investor-Mark-Campbell-set-charge.html
  • 'After the Boxing Day draw against Bolton Wanderers FC, various groups of Sunderland fans – including the main representative fan body - issued a joint statement calling for the club to be sold immediately. Stating that “No-one knows the long-term plan for the club, and trust between the fans and the boardroom has eroded”, it went on to demand: “If there is a realistic offer on the table, he (Stewart Donald, chairman) must admit the enormity of the task and cut his losses.”
    Given these circumstances, and Stewart Donald’s sincere commitment on his arrival at Sunderland AFC that “I won’t outstay my welcome”, the Board feels that it has no option but to sell the club. That process has now commenced. Owing to confidentiality agreements, there will be no further updates until a preferred bidder is identified.
    https://www.safc.com/news/club-news/2020/january/club-statement-jan-2020
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  • i know a certain Belgian that is holding plenty of moolah, got experience getting out of league 1 as well...
    Sunderland don't deserve him.... Maybe Palace need a new owner
  • That Bauer goal at Wembley was a real sliding doors moment for both clubs.

    Sunderland still could go up this season though, L1 this year is now really tight with the early pacesetters like Ipswich, Wycombe, Posh and Blackpool all on bad runs now
  • That Bauer goal at Wembley was a real sliding doors moment for both clubs.

    Sunderland still could go up this season though, L1 this year is now really tight with the early pacesetters like Ipswich, Wycombe, Posh and Blackpool all on bad runs now
    You're right, but I didnt notice that Boxing Day result. Home to Bolton, 33,000 crowd, draw 0-0...and Will Grigg still can't get in the starting line-up. This time last season we were in a good place on the pitch. Can't say that of Sunderland. 

    Which reminds me, when does series 2 of the Netflix doc kick off? :-) supposedly some time next month.
  • They are only 6 points off the automatics with a game in hand, amazing when you look at the bad run they were on.
  • That Bauer goal at Wembley was a real sliding doors moment for both clubs.

    Sunderland still could go up this season though, L1 this year is now really tight with the early pacesetters like Ipswich, Wycombe, Posh and Blackpool all on bad runs now
    You're right, but I didnt notice that Boxing Day result. Home to Bolton, 33,000 crowd, draw 0-0...and Will Grigg still can't get in the starting line-up. This time last season we were in a good place on the pitch. Can't say that of Sunderland. 

    Which reminds me, when does series 2 of the Netflix doc kick off? :-) supposedly some time next month.
    Forgot all about series 2 coming up. It will have the playoff final wont it?
  • edited January 7
    That Bauer goal at Wembley was a real sliding doors moment for both clubs.

    Sunderland still could go up this season though, L1 this year is now really tight with the early pacesetters like Ipswich, Wycombe, Posh and Blackpool all on bad runs now
    You're right, but I didnt notice that Boxing Day result. Home to Bolton, 33,000 crowd, draw 0-0...and Will Grigg still can't get in the starting line-up. This time last season we were in a good place on the pitch. Can't say that of Sunderland. 

    Which reminds me, when does series 2 of the Netflix doc kick off? :-) supposedly some time next month.
    Forgot all about series 2 coming up. It will have the playoff final wont it?
    Everyone loves a happy ending. 🤪
  • That Bauer goal at Wembley was a real sliding doors moment for both clubs.

    Sunderland still could go up this season though, L1 this year is now really tight with the early pacesetters like Ipswich, Wycombe, Posh and Blackpool all on bad runs now
    You're right, but I didnt notice that Boxing Day result. Home to Bolton, 33,000 crowd, draw 0-0...and Will Grigg still can't get in the starting line-up. This time last season we were in a good place on the pitch. Can't say that of Sunderland. 

    Which reminds me, when does series 2 of the Netflix doc kick off? :-) supposedly some time next month.
    Forgot all about series 2 coming up. It will have the playoff final wont it?
    You'd think it has to. It has all the ingredients for fly on the wall doc. The absolute killer goal, not to mention Jonny Williams, who featured heavily in S1, coming on and running them ragged. But I did read somewhere that for some reason they featured their Checkatrade Trophy "adventure" more heavily.
  • That Bauer goal at Wembley was a real sliding doors moment for both clubs.

    Sunderland still could go up this season though, L1 this year is now really tight with the early pacesetters like Ipswich, Wycombe, Posh and Blackpool all on bad runs now
    You're right, but I didnt notice that Boxing Day result. Home to Bolton, 33,000 crowd, draw 0-0...and Will Grigg still can't get in the starting line-up. This time last season we were in a good place on the pitch. Can't say that of Sunderland. 

    Which reminds me, when does series 2 of the Netflix doc kick off? :-) supposedly some time next month.
    Forgot all about series 2 coming up. It will have the playoff final wont it?
    You'd think it has to. It has all the ingredients for fly on the wall doc. The absolute killer goal, not to mention Jonny Williams, who featured heavily in S1, coming on and running them ragged. But I did read somewhere that for some reason they featured their Checkatrade Trophy "adventure" more heavily.
    Imagine if it had been us filmed last season for a doc on Netflix. That would of been a great watch.
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  • That Bauer goal at Wembley was a real sliding doors moment for both clubs.

    Sunderland still could go up this season though, L1 this year is now really tight with the early pacesetters like Ipswich, Wycombe, Posh and Blackpool all on bad runs now
    You're right, but I didnt notice that Boxing Day result. Home to Bolton, 33,000 crowd, draw 0-0...and Will Grigg still can't get in the starting line-up. This time last season we were in a good place on the pitch. Can't say that of Sunderland. 

    Which reminds me, when does series 2 of the Netflix doc kick off? :-) supposedly some time next month.
    Forgot all about series 2 coming up. It will have the playoff final wont it?
    You'd think it has to. It has all the ingredients for fly on the wall doc. The absolute killer goal, not to mention Jonny Williams, who featured heavily in S1, coming on and running them ragged. But I did read somewhere that for some reason they featured their Checkatrade Trophy "adventure" more heavily.
    Seeing that they lost at Wembley in this as well, not sure that's a great improvement for Sunderland fans!

    The playoff final is THE big moment of the season anyway, a great ending for the series, much better than automatic promotion or mid table mediocrity
  • Won't they have Americans coming in?.
  • Won't they have Americans coming in?.
    Australian consortium?
  • Redrobo said:
    Won't they have Americans coming in?.
    Australian consortium?
    He has a red and white scarf... 
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