FPP to take full control

The latter always seems to happen to us anyway

 

I've got balls of steel now that used to the annual kick in the bollocks.

 

Sunderland AFC News And Banter Page
3 hrs ·
️ A key update from @Phil__Smith on American investors FPP Sunderland and their interest in #SAFC

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Further proof it was a takeover and not an investment like Donald says

 

As far as I'm concerned they set out their stall and won't be involved in any further discussions.

It's like the old joke about the couple celebrating their 60th wedding anniversary.

Wife, "You've only ever told me you loved me once, on the day we married."

Him, "And I promise you, with all my heart, that if the situation ever changes you'll be the first to know."

 

I don't see why they would be involved in substantive talks. Unless Donald comes to them and tells them he'll take what we're worth, or unless the management team starts performing and we get into the championship I don't think there'll be anything to discuss. The loan was their idea, and there's no reason why they will want to reassess until a set amount of time has passed, it was never likely to be a short team thing

 

They don't need to have talks, their cards may be on the table and its up to Donald to fold. The sooner the better for the sake of the club

 

I could see this ‘there’s our offer, it won’t be changing...’.

Could explain salmon pants ‘many interested parties’ bullshit, trying to bluff people way beyond his calibre.

 

I don't really understand your point here.

This was clearly their choice as to how to do structure a deal that they were happy with. Donald probably would have loved it if they'd have offered to do the whole lot up front, but they clearly didn't, so how can it ever have been 'a takeover' if they opted against ever making an offer for the majority of shares?

 

I'm sure he would at whatever price he was asking for a 3rd division club ...

.... it's equally possible they'd have taken over at a price they were happy with.

This, current situation may well be a tempoary compromise.

There's certainly no sign of anyone else paying what Donald's asking.

 

Exactly. On a positive note, they're not out of it. On a more negative one... It should be apparent to everyone now that money is not the sticking point here based on the difference between FPP's loan and the total value they could acquire us for, which means that the likelihood is that FPP are basing this decision on something else.

Worst case scenario is that it's based on us being promoted, which means we need to navigate another year of Donald as owner, without him selling, and him getting us promoted, if we're ever to realise the dream of being owned by them.

I don't see any other realistic metric they could be hanging on for.

 

But that price was what? we're seeing now they were never miles apart. It's one thing to say he was asking for £40m and they valued it at £10m, but the difference now could be as low as £5m. If they want us, I find it extremely hard to believe that they'd not have found a way to get that deal done.

 

My guess

FPP offered an amount they want to pay
SD rejects it as he wanted / wants 40 million
FPP back off
SD starts to worry / run out of money and goodwill so contacts them
FPP offer the loan with conditions
SD takes the loan and hopes we get promoted or he can sell before the accounts come out

The thing we have to remember in all this is the FPP lot may be filthy rich, but you don't get that rich by wasting money or overpaying for something

 

More realistic:

FPP hear about us via a broker, including an asking price (most likely Methven)
FPP are intrigued by the potential from outside
FPP ask to look at our books
FPP realise it's not a slam-dunk and a lot of work needs doing to become profitable
FPP offer a convertible loan they can exercise when we hit <target X>
FPP now have first dibs on us, but no commitment and can walk away with their cash if we don't get there

I don't think Donald negotiated anything with them, for one very simple reason: I don't think he's capable of convincing three experienced, hard-nosed businessmen to compromise on anything fundamental.

 

Donald is full of ****

 

Something else that now makes sense and is positive too: The convertible loan would likely (with the debt wiped off) give FPP a majority stake in the club at the price today.

 

Being pedantic I didn't say SD negotiated, I said he rejected their bid then in desperation contacted them again and they offered the loan while he suffers

 

One of the few 'off-guard' answers Donald has given was 'you'd have to ask them why they wanted to do it this way'. Like I said, I reckon he would have snapped their arm off to do any deal that saw them as majority shareholders. If they knew the debt was/could be wiped, then asking for £40m would have been so daft they would never have come back, because he'd be asking for a £27.4m profit on his shareholding after 1 season and no progress, with the club in the bottom half of the table

Actually, I'd go one step further, I doubt they'd have ever got them to the table at that price.

 

The difference could be anything ...

... as you've just said no one knows any figures so it's all guesswork.