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FPP to take full control

Discussion in 'Sunderland' started by Whiteleas Wanderer, Jan 19, 2020.

  1. Smug in Boots

    Smug in Boots Well-Known Member

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    I've absolutely no idea what he's talking about but there's no need for a ban ffs ....

    ... some of the pro-wums post things much worse tbh.

    Once your username becomes too well known you're doomed on that forum.
     
    #5781
  2. wearside wanderer II

    wearside wanderer II Well-Known Member

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    I certainly know what you mean
    It not worthy of a ban but he’s missing a pork pie from his picnic basket imo
     
    #5782
    Smug in Boots likes this.
  3. Agent Black Cat

    Agent Black Cat Well-Known Member

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    Thank you.
     
    #5783
  4. Agent Black Cat

    Agent Black Cat Well-Known Member

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    Ban is very harsh for that. He clearly gets info but he’s such a cryptic tease.
     
    #5784
    sad-eyed prophet likes this.
  5. RIC

    RIC Well-Known Member

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    Words of warning from salmon pants about tickets eh?
     
    #5785
  6. Bob Cheval

    Bob Cheval Well-Known Member

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    The value of something is whatever someone else is prepared to pay for it. That Bloomberg article says “up to £40m”. These deals are normally presented as a valuation range and it could easily mean £25m to £40m or £35m to £40m. Who knows - but saying that you are looking for a price of up to £40m is not the same as saying that you are asking for £40m.

    Football clubs are very hard to value because most of them always lose money and other deal info is hard to find. As seen with SD purchase of SAFC the headline price, even if you know it, is less than half the real picture. How much debt, cash, length of key player contracts, etc. It’s not easy.

    All we do know is that a £28m sale price is enough for FPP to be paid back and for SD to walk away with the original money that he put in. His £6m loan and then the initial equity.

    Does he deserve not to make a loss? Well the club was losing a huge amount of money when he came in. Although cost-cutting is the easy bit, growing a business is not.

    Personally I don’t see why anyone would offer over £30m given the situation and how much investment in the playing squad is needed. Even to offer that much would only be to get the deal done quickly by someone who had money to spare.

    That is why FPP are happy to wait it out in my view. Their loan is not really at risk, time is on their side. I don’t know the exact terms of the loan and how it converts to equity, but at a guess it will be something like 51% with an option to buy the rest at the same value, ie £19m or something. Which leaves just enough for Madrox to pay back SD his loan and leave it with the same equity that it started with. So that is the worse case for SD, perhaps, to hand over the keys to FPP.

    This is probably why SD can dig his heels in looking for another buyer. Any other buyer has to bid enough for the club to be able to pay back FPP as well. He probably doesn’t have to accept a bid that forces him to take a loss, as the FPP deal provides a floor for him. I might be wrong about the 51% though, so maybe it is lower than that, but there will be a floor valuation of some kind.

    So all that is happening is that SD is looking for someone to outbid FPP, and clearly failing. What I don’t know is whether there is a timelimit for this and a point at which FPP have to be paid back or handed the club.
     
    #5786
  7. Wackyjacky

    Wackyjacky Well-Known Member

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    If, as Donald says, he's not touched the £9m loan and it's sitting in an account somewhere, he gives that back to FPP, he'd not need the £28m. He'd only need to sell for £19m to break even. Or am I missing something?
     
    #5787
    Sunderlad, Kittenmittons and DH4 like this.
  8. Kittenmittons

    Kittenmittons Well-Known Member

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    Bob I think one thing that I'd an x factor here is that buying a football club as a separate entity (the 3 in FPP) is not the same as managing the MSD funds they usually administer in terms of personal responsibility and satisfaction. There's a non-financial gain for them that most other investments don't come with.

    As for the price, I think it's closer to £20m.

    I was going to make this point. The money was put into the club but it still exists within it unless Donald has spent it all. If it's still in the club it won't contribute to the purchase price in practical terms, as anyone paying it would effectively be getting it back once they assumed control.
     
    #5788
  9. Gatesy

    Gatesy Well-Known Member

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    What I've never been able to understand is why owners put in a 'loan' to the club to run it and expect that money back. Surely being there own company it's down to them to cover the running costs whatever they may be. It would be like buying a Ferrari for 150k and then getting a 50k loan to cover insurance costs, petrol, new tyres, gearbox if it goes etc and then saying actually the car is worth 200k now. I just don't ****ing get it and it pisses me off massively how these arseholes can try and justify it...

    We were over 150m in debt before ES sold to these idiots but we weren't really were we because it was mostly money Short put in to cover his piss poor performance so why should the next incumbent have to pay for me being an arsehole and ragging the Ferrari and completely destroying the gearbox! It's my stupidity, I pay for it or sell it for less the cost of a new bastard gearbox! Thankfully ES saw sense and decided to 'wipe' the debt, well ****ing done Mr Short, my bastard hero!

    Apologies for jumping in and out of analogies but I'm foaming and I'm done with this **** (I'll still be back when stadiums reopen though :emoticon-0121-angry)
     
    #5789
  10. Bob Cheval

    Bob Cheval Well-Known Member

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    No - it’s basically the same thing. The £9m is currently with SAFC. So whether he takes it back and gives to FPP and sells for £19m or doesn’t take it back and sells for £28m and gives FPP £9m of it makes no odds for him. But that assumes it is unspent.
     
    #5790

  11. Bob Cheval

    Bob Cheval Well-Known Member

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    W
    my guess is that the driver behind this is the one of the three who has now retired.
     
    #5791
    Porterfield73 likes this.
  12. This.
     
    #5792
  13. Dave_39

    Dave_39 Well-Known Member

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    Methven blaming fans again here spouting utter ****e **** out you utter twat Methven

     
    #5793
  14. Wackyjacky

    Wackyjacky Well-Known Member

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    Can't ever remember people wanting the Irish consortium out and for 5 owners you'd have to go all the way back to Cowie's time, pure bollocks.
     
    #5794
  15. Comfy

    Comfy Well-Known Member

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    Bloody hell thats why mad bob is missing from over the road he’s giving his wrists a rest after writing all those letters
     
    #5795
    rooch 3, DH4, Robertson and 1 other person like this.
  16. Dave_39

    Dave_39 Well-Known Member

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    he got banned but they can do wrong in his eyes
     
    #5796
    Comfy likes this.
  17. Chunksafc

    Chunksafc Guest

    You can't include letters from your mam asking you to stay, that would account for most of the requests to stay.

    For a PR guru, he is ****ing ****e
     
    #5797
  18. wearside wanderer II

    wearside wanderer II Well-Known Member

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    The texts need to be released and full out war on these thieves.
     
    #5798
  19. Zidane

    Zidane Well-Known Member

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    I'm looking forward to that Chris lad taking over when SD leaves as he has been telling us 12 times a day on social media how not to run a football club so I'm looking forward to a masterclass with Chris and us flying to the champions League final within 5 years.
     
    #5799
    clockstander and Montysoptician like this.
  20. Wackyjacky

    Wackyjacky Well-Known Member

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    Tbf to the lad he's been saying a lot of things about them from day one which a lot of us, me included, didn't want to hear. He has questioned a lot of what they've said, especially with the finances, and hasn't let up and I'll be honest, I'm pleased he has and hasn't given in as he's unmasked a lot of the lies and untruths. So imo fair play to the lad, with his accountancy background he's more abreast of what has gone on than a lot of us and highlights it, fair do's.
     
    #5800
    Kittenmittons, Huds0n, Gatesy and 2 others like this.

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