Amazing isn't it that the Daily Mail have had this information for a long long time and suddenly, 4 days before a play off final, decide to release it now: https://www.dailymail.co.uk/sport/f...hven-pocket-40m-selling-again.html#newcomment Not that there's anything in there that most of us didn't already know and Stewart Donald has already come out and said he's in it for the long haul. But the Daily Mail seem to have a real problem with us - Not the first time they've done something like this IIRC! Donald is on the podcast this week talking about this - be interesting to see what he says but I've never trusted the Daily Mail!! _____________________________________________ 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 Sportsmail investigation has revealed the story surrounding takeover last year Stewart Donald and Charlie Methven struck a deal with American Ellis Short They committed £5million of their own money in the reported £40m takeover If Sunderland beat Charlton on Sunday they will return to Championship Methven and Donald have seduced fans with long-term strategy for the club But they could sell and return to their Oxfordshire homes with a tidy profit By MATT LAWTON FOR THE DAILY MAIL and MIKE KEEGAN FOR THE DAILY MAIL and LAURA LAMBERT FOR THE DAILY MAIL and CRAIG HOPE FOR THE DAILY MAIL PUBLISHED: 22:30, 22 May 2019 | UPDATED: 23:59, 22 May 2019 Sunderland's owners used £32million of Premier League parachute payments to buy the club from Ellis Short last year. Evidence seen by Sportsmail has revealed that chairman Stewart Donald and executive director Charlie Methven committed only £5m of Donald’s money as part of the £37m takeover to secure control of the club a year ago. please log in to view this image They could now both make millions if they push through with plans to sell for £50m, although no rules will have been broken. Donald on Wednesday night confirmed that the takeover involved a payment of ‘£15m plus last summer’s parachute payment of £25m’, although evidence suggests close to £10m of that first payment was also parachute money. The Sunderland chairman, a popular figure with fans, also insisted he is still committed to the club ahead of Sunday’s League One play-off final against Charlton. He said: ‘The notion that I am going to leave Sunderland in the short-term, having made a quick profit, is simply wrong.’ In correspondence seen by this newspaper, however, the desire to sell to a new owner is made clear. please log in to view this image +8 Charlie Methven (left) and Stewart Donald (right) bought the club with only £5million If Sunderland secure promotion back to the Championship on Sunday with victory over Charlton at Wembley, the fans may salute two men they regard as the saviours of their club. But, as a Sportsmail investigation reveals, Stewart Donald and Charlie Methven struck a deal with former owner Ellis Short to buy the club using Premier League parachute payments. Only now — after being challenged by this newspaper — have they admitted this was central to an agreement that saw Donald commit only £5million of his own money in the £37m takeover. If they succeed with their plan, which has broken no laws nor breached any regulations, to sell Sunderland only 12 months on, they stand to make a fortune. Donald would pocket some £37m if they achieve their £50m asking price, while Methven would make around £3m for his stake. This time last year, Donald and Methven arrived on Wearside, the former a 44-year-old insurance millionaire who sounds a little like David Brent, the latter a smooth-talking financial PR man and former journalist Private Eye recently described as a ‘Brylcreemed, perma-tanned, Thatcher-worshipping Old Etonian Hooray’. They declared Sunderland ‘debt-free’ after succeeding Short as owners. Short did agree to write off most of the club’s £150m debt but Sportsmail can now confirm that almost £32million of that was covered by Sunderland via parachute payments — and not Donald and Methven — after the takeover was completed. Donald took a 94 per cent share with Methven getting the remainder. They promised to re-engage with the club’s disenchanted supporters. please log in to view this image +8 Ellis Short allowed the pair to buy the club using Premier League parachute payments Oxford-educated Methven has been particularly masterful. He can stroll into the Colliery Tavern, a pub across the road from the Stadium of Light, in his red chinos on match days and enjoy a pint with the locals. The supporters see Donald and Methven as the antithesis of Short, the billionaire who came to be regarded as aloof, elusive and neglectful. The American lost some £250m in his bungled attempt to establish Sunderland as a Premier League powerhouse, only to see them drop to the third tier. On May 21, 2018, only 24 hours after Short had fired manager Chris Coleman and declared he was off, too, Donald and Methven assured supporters in an interview with Sunderland fan podcast Roker Rapport that life would be different on their watch. This would no longer be a club where people could come in and ‘take the p***’ financially. They invited supporters to help replace the stadium’s sun-scorched pink seats, that had become a source of some embarrassment, while feeding them burgers and beers. Donald’s insurance company offered discounts to Sunderland fans. A one-time Samson the Cat, the club mascot, was appointed their new managing director. Tony Davison returned to the club he had supported since childhood, after working as a commercial director at Tottenham and Oxford United, as well as at Methven’s communications firm in London. please log in to view this image +8 Sunderland director Juan Sartori (L) with fellow director Methven (right) and supporters The host of the podcast was also hired after being one of those questioning the details of the takeover deal, in particular whether Donald planned to pay Short with Premier League parachute payments rather than his own money. Executive director Methven responded at the time: ‘The way in which Ellis has allowed us to do it is to pay some of the £40m in stages, to help us with the cash flow requirement this summer. ‘The reality when you do this kind of deal, and there is still money outstanding on the deal, is that the person who has that money outstanding will want to take security against something so that if the owners then didn’t pay, he would have something to cover his money. ‘That money is secured against parachute payments but that is just him making sure he gets the full value of the £40m from us.’ This, however, does not exactly tally with the precise details of the deal that have now been uncovered by this newspaper. According to evidence seen by Sportsmail, allied with a forensic examination of published accounts at Companies House, Donald committed only £5m in the form of a loan. The remaining part of the deal — just shy of £32million — was covered with parachute payment cash. While there are no Premier League regulations regarding how a club spends the money, the payments were introduced to protect clubs from the financial pressures of relegation from the top flight. Short did agree to accept the money in instalments, with Donald declaring in July 2018 that an initial £15m had been paid to the American. It was actually £14.6m, with £9.6m from the club accounts and a further £5m provided by the new majority shareholder owner. please log in to view this image +8 The owners have only been in a year but could still flip the club for a handsome profit please log in to view this image +8 Donald has endeared himself to the locals and insists he is still in it for the long haul When contacted by Sportsmail, Methven did not deny any of this. He did not deny that parachute money was then used to cover the remaining part of the deal, with the final £8.4m of the £31.988m paid only last month. Methven said the money was not, however, paid to Short but to SBC (the Security Benefit Corporation) in America. Asked specifically if the parachute money had been paid to Short, Methven replied: ‘I don’t accept in so many words we have (paid Short) because effectively the money has never touched either us or Short. It’s gone straight to SBC, the bank.’ Asked then if that was part of the deal struck with Short, Methven replied: ‘Yes. To pay off the last bit of the debt he otherwise hadn’t paid off.’ The money was channelled through Madrox Partners Limited, a company incorporated on May 2, 2018 by Donald and Methven and used, in Methven’s words, as ‘an accounting route’ because ‘parachute payment money has to be paid into the club accounts’. Methven insists it remains a great deal for a club which had debts of more than £150m. He argued this week that a year in charge has cost Donald a further £10m, although he provided no evidence of this. The figure is disputed by sources given that an injection of cash was received as a result of selling a 20 per cent stake in the club to Uruguayan businessman Juan Sartori. Insiders believe the total expense for Donald is closer to £7m. please log in to view this image +8 Donald just had to demonstrate he could finance running the club to take over There is still £8.6m of parachute money due to Sunderland between August 2019 and July 2020. But an £11.92m loan from merchant banking group Close Brothers, which was secured in April, has enabled the payments up until August to be advanced and much of it paid out via Madrox Partners. WHO ARE 'BATMAN AND ROBIN'? Stewart Donald: A multi-millionaire and lifelong Oxford United fan who owned National League club Eastleigh for six years. The former insurance man is now the Sunderland chairman who has enamoured himself with fans with soundbites like ‘the club is not a toy, it’s at the heart of the community’ and by appointing Jack Ross as manager. Charlie Methven: Smooth-talking executive director Methven was educated at Eton and Oxford, and previously worked for Sporting Life and the Daily Telegraph. He co-founded the PR firm Dragon Advisory and remains chairman. With his trademark slicked-back hairstyle, Methven is the main frontman for Sunderland. Sportsmail can reveal that of the £56.5m of parachute money received between last June and next July, only £24.5m of it will have gone towards the working capital of the club. Methven argued that, while it might have been more palatable for Short to have cleared all the debt and then demanded the full £40m from Donald, the end result would have been no different. But it would, because Donald would have been forced to find the money up front rather than commit future parachute payments to the deal. That was not feasible for a man Methven claims is worth ‘somewhere between 50m and 60m’, and it was not the deal on the table. It was a deal that apparently made the English Football League nervous until Short made it clear to EFL chief Shaun Harvey and his executives that the alternative would be ruinous for Sunderland. In what has been described a tense exchange, Short is said to have stressed that he was losing so much money — reportedly as much as £500,000 a week — he was ready to simply pull the plug. Sportsmail understands that Donald only had to demonstrate he could finance the running of the club to meet the EFL criteria for ownership. The EFL knew parachute money formed part of a deal and still allowed the takeover to go ahead. On Wednesday the EFL said they would not comment on specific details. please log in to view this image +8 Sunderland overcame Portsmouth to reach the play-off final and they will take on Charlton Donald and Methven have never provided any real clarity on the importance of the parachute money to the takeover. In September, Methven revealed in programme notes that the £25m due in summer parachute payments had been ‘ringfenced to pay down bank debt’, but there was no mention of it being used as part of the £40m owed to Short for the purchase of the club. A month earlier Donald admitted money he was paying for the club to Short was being used to pay off debt, but failed to specify that the club’s parachute payments were being used. On Wednesday, however, in a statement to Sportsmail, Donald said: ‘Madrox agreed a deal worth £40m with Ellis Short. This was £15m plus last summer’s parachute payment of £25m, which came in just after we took over and was ring-fenced to pay off the last bit of bank debt. ‘So together Ellis and I ensured that the club would be debt free. Ellis by writing off his own debt of £80m and then, with the assistance of that last parachute payment, paying off the £70m of bank debt the club had accrued. And me by refusing to “port” Ellis’ debt on to our books. ‘Instead of having last summer’s parachute payment to settle these debts, Juan Sartori and I have had to inject our own money and continue to do so even now, effectively writing down the £25m parachute payment that was advanced to Ellis. I am clear that I wish to retain a significant investment in the club for the long-term. The notion that I am going to leave Sunderland in the short-term, having made a quick profit, is simply wrong.’ But Sportsmail has seen evidence that £9.6m of that initial £15m payment was also financed using parachute money already sitting in Sunderland’s accounts. please log in to view this image +8 Sunderland supporters were sold a long-term strategy by Methven and Donald The concern, expressed by insiders, is whether Donald has the funds or inclination to continue financing Sunderland. Methven insists Donald could yet remain as a shareholder, from anywhere from ‘25 to 55 per cent’, but Sportsmail has seen correspondence that makes clear Donald and Methven’s desire to sell for £50m. No regulations will have been breached and no laws would have been broken. But two men who seduced Sunderland’s fans with their long-term vision for ‘a family club’ would return to their own family homes in Oxfordshire significantly richer. On Sunday the focus will only be on Sunderland’s ability to beat Charlton. If they do so perhaps those two men in the Royal Box will be the toast of Wearside. But the club’s return to the second tier of English football will have come at a cost. Sources say the Sunderland academy that has long been the club’s crown jewel is in danger of losing its Category One status. A sizeable chunk of the parachute money has gone, meaning any new owner has to use their own money to finance the club. ‘They have been portrayed as Batman and Robin,’ said one insider on Wednesday. ‘Well the deal is not quite what we thought it was and let’s see what happens now.’ RELATED ARTICLES
They have given the club back to the fans (not literally) and for that, after years of ****, I will pretty much be eternally grateful.
The Daily Mail have (again) portrayed themselves as scum, purely, it seems, to disrupt our preparations for the most important game of the season . . . . this is a dirty trick executed by pure bastards Fortunately, we are not as thick as they presume, and we all see through their **** stirring, so it should have little or absolutely no effect on our looking forward to Sunday
Literally never seen them put as much effort into an article, don't know what's got into them. Sounds like someone with a vendetta against Donald and Methven has got hold of some emails and been shopping them around and for whatever reason for someone at the Mail it was one of the happiest moments of their life. It would be a shame if we're being strung along with the pally act and they'll bugger off at the first opportunity of a profit. Donald says it's bullshit but he would wouldn't he. So far they've seemed legit so I'd rather give them the benefit of the doubt and believe them.
Nothing we didn’t know already. End result is the same, sell or go we have a club back in a level and clear of the noose of massive debt. If they go and make a lot of money I don’t begrudge them a penny, as long as they make sure they sell to the right person to take us on. They’ve been more than open about not being mega money men, but from backing the gaffer, to clearing debts, to replacing seats, to reconnecting the fans and club they have been magnificent for us. There is no suggestion, anywhere, whatsoever, that the academy could lose category one status, we would have to dismantle facilities to stop hitting that criteria, or disband several levels of youth teams and such, it’s absolute fabrication. Daily Mail can suck my big Mackem dick.
Nor sure why this is news worthy to be honest. So a couple of guys saw an opportunity to make some serious cash and went for it. But what is news, they did an incredible job at the same time. What Donald and Methven have done for SAFC is priceless. I for one hope when they leave the club, they leave with millions, they deserve it. They have worked hard and made some excellent business decisions. What has been mentioned by a few, the biggest thing they have done is give the club back to the fans an given where this club was when they took over..that is a minor miracle so well done guys... as for the Mail...get F.U.C.K.E.D
Exactly mate. If they make a few quid but the club is back on its feet, ready to move forward, reborn in a way as there’s a genuine chance Ellis would have pulled the plug or gone into administration, are any of us offended? If they leave with bag full of cash right now I’ll have nothing but best wishes for them. I could see them selling and using the money to get Oxford back on track, and I’d actually be keeping an eye on Oxford hoping they did it. **** the ins and outs, the pair of them have been brilliant for us and that’s all we care about. I’m not sure anyone could have done a better job, and if we get up on Sunday that just enhances it.
What's apparent from the article is how close SAFC came to financial ruin. I don't care how they did it, they saved the club, and they deserve credit for it.
The timing of the release of this article says everything to me and there reason for doing it. As mentioned just trying to stir the pot. Stewie and Charlie are business men just like the Glazers, Sheik whatever from Man City and our own Ellis Short. What the Mail thought they would buy Sunderland to lose money? Only Ellis was good enough to do that. However it turns out in the future I hope they stay connected with the club if not they will have my best wishes when they leave.
Reading through the article I found myself keep saying to myself 'So?........So?........So?' I was waiting for the juicy bit but all I found was stuff that alot of us knew already and even stuff that the owners have admitted to.
So 'they could take a massive risk, resurrect the club and make a profit'. What a pair of scumbags! And to think there was a massive queue of billionaires desperate to pump their money into a car crash of a club. What a chance we missed ....
just think with my nonce and Nads spare 5 mill we could have bought the club, wish i had spoken to Ellis mesell. bugger...........
I suspect the Daily Heil (they supported Hitler Mussolini and Mosely) just want to stir matters up before the play off final. Not that Donald will be lily white, nobody is in football. BUT I would argue that our financial position is a lot better than a year ago especially if we go up. If Donald sells and makes a profit... good luck to him
What don't you understand? Roger owns a nonce, which he is willing to exchange for goods and services.
