Serious takeover talk

Who's people? I haven't got a baldy who you are - you sound like Wardley Mackem to me.

 

Ok, so I can take all of that onboard. The cost was £32million, that would exclude the purchase of the club as that couldn’t be listed as a cost.

So, where’s the £32 million of income? Can’t include parachute money though, that bought the club.

 

I don’t give 2 ****s who I sound like to you mate.

I am me, I have no alter egos, I don’t hide from anyone, I know folk on this forum and I’ve posted here and only here for many years.

I’m from seaburn and live in Newcastle, so why the **** would I have anything to do with Wardley?

Jesus.

 

But then we said that was paid off from the parachute payments aye? So it’s the same money moved around, not 2 loads of money.

 

Well it is half way between Sunderland and Newcastle - just saying like. Anyway how much of their own cash have the current owners put in?

 

But I’m from Seaburn, in Sunderland. And I live in central Newcastle.

Neither have anything to do with Wardley, indeed I’m not sure I even know where Wardley is!

 

What’s the relevance of that?

 

Neety neet

 

The parachute payment was £34m for last year. Only £25m went towards paying SBC debt.

That means the operating revenue of £20m + the parachute of £9m = £29m of the £32m covered. As they said, we came close to breaking even last year, and we will this season (should make a £5m profit).

 

So, you’re saying that £29million is accounted for? Towards £32 million of costs? Sounds about right doesn’t it?

So where’s the black hole?

 

I'm Spartacus.

 

At least you know who you are mate, apparently I don’t

 

Never heard of either of you marra but as long as you are comfortable in your own skin, that's what matters.

 

Well you're not Wardley Mackem whomever the **** that is.

 

Gotta chuckle mate. Been on here what 8-9 years?

Been playing the long game hiding my true identity from strangers on the internet.

Next I’ll be flying planes into buildings.

 

That's the club's operating income and outgoings. Let's assume that Donald paid the other £3m of that out of his own pocket and ignore it.

So separate of that, Donald's company (Madrox) has by their own admission loaned £25m from the club to pay the SBC debt that he agreed to personally pay off as part of the deal to buy the club. We know this was paid in August last year as SBC removed their charge over the club for this money. The debt outstanding is now closer to £20m according to Methven, whether that was through Donald drip feeding it back in, Sartori's cash or anything else, we don't know, but I have no reason to doubt that it's around £20m if they say it is. If they were agreeing to pay back £5m a year, I'd not even be posting this right now, but they aren't, hence why I think there should be some schedule in place to pay that back.

Anyway, in addition, Donald agreed to pay Short for his shares. A £5m down payment was made in May of last year, however as this does not appear on the accounts, we don't know how or when this was paid in practice. Let's assume it's legit £5m from SJD holdings for simplicity!

That left £10m. £400k was wiped off by Short for staffing costs, so £9.6m.

Then in September, DOnald said that 2-3m was wiped off by Short to cover the unexpected costs like Alvarez. That left him with (let's say) £6.6m to pay to Short.

In April, SAFC took out a short term loan with Close bros for £11-12m to cover 'various black holes - see below from Charlie Methven's RAWA meeting:



So the actual black holes were Donald's payments to Short. Here is the direct quote from Donald on that (I've linked to the time but if it doesn't work, the 60 seconds from 1:12:42:

So as you can see, what we are asking, is if the club paid back Close Bros for the entire sum in July, then whatever was paid to Short from that sum needs to come back to the club at some point. That's just fact isn't it? The agreement was never for the club to pay for that as a gift, it was that the parachute payments should only be used if Donald could not pay, and then Donald would owe the club as per the SBC debt. As I said before, I would assume that will come back in as a loan like the rest of the payments that had been secured against the parachute payments. I will defer any comment on that until the accounts in April.

The metaphorical 'black hole' I refer to is actually just that once money gets paid out via madrox, we have an unaudited layer of accounts that effectively stops us knowing who has been paid what. It's not illegal, or immoral or any of that, so don't think I'm accusing anyone of a crime. It's just uncomfortable because there are personal debts as well as club debts going out via the same vehicle.

When an owner such as Short is ploughing hundreds of millions in, nobody questions those things (although ask GOM if he was happy with SAFC's accounting setup from a transparency p.o.v in previous years, I recall him being frustrated by Short on that). When an owner's company is borrowing tens of millions of pounds from a club in our situation, and then goes on record saying he won't be putting any of that back in the upcoming year (2:01:57 on the podcast), then I just get worried.

Is it ok to be worried by that arrangement?

 

Has this morphed into 'kittenmittens accounting for conspiracy nutjobs' thread.
Reading it is like is like watching jack ross's idea of football...eye bleeding

 

I think I'll refer to you as Wardley now and then just for fun.

 

I’m Kaiser Souze. You may call me Kaiser.