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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 23
    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 23
    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
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