All good points. There's definitely more to think about than finances for Donald, and I'm sure even if he could see a financial recovery in future, he might be tempted to try to cash out rather than risk it. In fact, that's what he's doing now effectively.
On the second point about administration/liability, do you mean in relation to the FPP money? Legally SAFC has no liability for the FPP loan, however in practice, Donald will be able to use SAFC's money to pay off Madrox's debts which would be normal practice (as we have seen, he can also write-off his own liability to pay it back too). He almost certainly also put that money in with the ability to use it to pay off FPP without penalty anyway.
Putting that to one side, if we were to end up in a bad situation because of CV-19, it would also have big repercussions for Madrox because the two are inextricably linked. The problem is that because Madrox can pretty much weasel their way out of their obligations (cancelled their £20m internal debt to us, able to take cash out of the business to pay their £10m FPP loan), in effect, we can be sacrificed if push comes to shove, or Donald could even say '**** it, I'll let them take it' and write off the club for £10m, but to tet there we would have to be losing a significant sum, which causes it's own problems that make us a less attractive investment for anyone.
So it's kind of catch 22. To get to the stage where FPP can exercise their options, the club itself has to be failing to a degree that may well lead down the worst path possible. At that point, we're relying on them taking us on, paying all of our ongoing debts, and financing us getting back up. It's not guaranteed that they would, particularly given their reticence to buy us outright in L1 when we were in a better financial situation.
What I’m trying to decifer, and I know you are 2, is ‘would the club be debt free if Madrox collapses’
Is there liability v the club and it’s assets other than to FPP?
If there isn’t, then a Madrox hit is a blessing, surely?
