FPP to take full control

[Smug in Boots]

IMHO, Donald does not have the wherewithal to fund another season in L1 or the Championship, especially as this Coronavirus stoppage with no gates will cause a a fall in revenue. Premiership is mostly TV money so will not be so much affected?

So for the past few weeks it has all gone quiet on the selling the club news, I assumed cos at one time we looked as if we were in with chance of automatic promotion. As that has all but gone away. Presumably talks with interested parties can resume on the basis on continued L1 membership?

In all honesty I'd think anyone who was looking will have dropped the idea, they'd be mad not to imo.

Only FPP have millions invested, have been through the books, etc.

If Donald panics they wake up one morning owning a football club.

Its not just gate receipts tho'..... Commercial revenue and all other service the club profiles from..Corporate, Food concessions, Club shop etc etc... Its a big loss for a club with gates the size of Sunderland

And possible televised games, Peterborough, etc.

 

[Bob Cheval]

And therefore have an automatic points deduction.

Which is why FPP would take it over, not allow the loan to default. In either scenario, they end up with the club. So it might as well be without a points deduction.

 

[Bob Cheval]

They can, but it's 'dead money' and I don't think they or anyone else will until we understand more about the long term future of the club and football.

If we are losing enough money in the short term to drive Donald to the point where administration is his only option, then yes, they can finance it, but it will be a big thing to do and you're very much overstating the idea that they'd be willing to do it. This isn't MSD, this is three guys who have made a lot of money out of MSD doing things on their own. If our running costs are £2.5m a month and our revenue is annihilated for an indefinite amount of time, they won't just accept that unless they're extremely reckless.

Like I said, it all sounds nice, but until we know how football will be played in the next 12-18 months and what changes to revenue will occur, people won't invest in football. Even taking on the ashes of a football club this size will be a huge money sink.

Again, we've all sat and said that FFP are canny businessmen who are willing to risk losing out on us over the apparent £5-10m asking price difference. The idea that they'd then assume far more risk in future, in an uncertain industry, with no realistic end in sight as of today, is a very strange idea indeed.

The difference is that SD needs a buyer to pay £37m just for him to break-even whereas the right price was closer to £25m. If SAFC can get back to the Premier league, it would probably be worth £300m+. But that is a long shot and will take investment. Paying SD £45m or so, and then same again to get the club promoted, the payoff is 3-1. Getting it for £9m, it is a 6-1 payoff. Those are the sort of odds private-quiet people like.

There is zero chance that FPP decline to take the club if SD defaults. Running costs are chicken feed split between three billionaires and when compared to the potential return.

 

[Smug in Boots]

The difference is that SD needs a buyer to pay £37m just for him to break-even whereas the right price was closer to £25m. If SAFC can get back to the Premier league, it would probably be worth £300m+. But that is a long shot and will take investment. Paying SD £45m or so, and then same again to get the club promoted, the payoff is 3-1. Getting it for £9m, it is a 6-1 payoff. Those are the sort of odds private-quiet people like.

There is zero chance that FPP decline to take the club if SD defaults. Running costs are chicken feed split between three billionaires and when compared to the potential return.

"There is zero chance that FPP decline to take the club if SD defaults."

Only someone who's desperate for FPP to walk would think otherwise, why would they have that clause otherwise?

They've put a huge amount of time, effort and money into SAFC ...

... simply walking away would be a very strange thing to do.

This virus will soon be a thing of the past and SAFC could be a fantastic bargain.

 

[John 11:35]

The difference is that SD needs a buyer to pay £37m just for him to break-even whereas the right price was closer to £25m. If SAFC can get back to the Premier league, it would probably be worth £300m+. But that is a long shot and will take investment. Paying SD £45m or so, and then same again to get the club promoted, the payoff is 3-1. Getting it for £9m, it is a 6-1 payoff. Those are the sort of odds private-quiet people like.

There is zero chance that FPP decline to take the club if SD defaults. Running costs are chicken feed split between three billionaires and when compared to the potential return.

The potential return will be too good to resist. If they get the club for say £11m someone else will happily pay £12m which is more than liquidation would yield.

 

[Smug in Boots]

The potential return will be too good to resist. If they get the club for say £11m someone else will happily pay £12m which is more than liquidation would yield.

If ever there was a time for a supporters run club this is it ...

 

[Kittenmittons]

"There is zero chance that FPP decline to take the club if SD defaults."

Only someone who's desperate for FPP to walk would think otherwise, why would they have that clause otherwise?

This is the type of comment that, respectfully, doesnt need to be made. I'm making a point that the agreement they had was made at a time when the circumstances were wildly different in terms of investing in any football club. Turning this into a contest where people's motives are questioned just because they present an opposing viewpoint is madness.

 

[Kittenmittons]

The difference is that SD needs a buyer to pay £37m just for him to break-even whereas the right price was closer to £25m. If SAFC can get back to the Premier league, it would probably be worth £300m+. But that is a long shot and will take investment. Paying SD £45m or so, and then same again to get the club promoted, the payoff is 3-1. Getting it for £9m, it is a 6-1 payoff. Those are the sort of odds private-quiet people like.

There is zero chance that FPP decline to take the club if SD defaults. Running costs are chicken feed split between three billionaires and when compared to the potential return.

Bob, you said a few months ago that the club wasn't worth anything at all. Now it's £25m, so you'll forgive me for not treating this like the gospel.

What Donald needs or doesnt need is difficult to quantify at this stage of a huge spanner in football's works. There is a possibility that organised sport of any kind will be played behind closed doors for many, many months, possibly even over a year. PE people do like a potentially big return, but they also hate fundamental risks to a business, and right now, there is a short-medium term existential threat to not just SAFC, but football as a whole. They don't know what football looks like on the other side of this, let alone when or if we can turn the type of profit they may have hoped for in November at some stage.

Like I said the other day, I'd just assume right now that there won't be any movement on this for at least 9 months, if not longer. The idea of having new owners within a month is not something I would agree with. Even Donald will likely absorb some short term losses until he knows he won't be compensated.

 

[flandersmackem]

Bob, you said a few months ago that the club wasn't worth anything at all. Now it's £25m, so you'll forgive me for not treating this like the gospel.

What Donald needs or doesnt need is difficult to quantify at this stage of a huge spanner in football's works. There is a possibility that organised sport of any kind will be played behind closed doors for many, many months, possibly even over a year. PE people do like a potentially big return, but they also hate fundamental risks to a business, and right now, there is a short-medium term existential threat to not just SAFC, but football as a whole. They don't know what football looks like on the other side of this, let alone when or if we can turn the type of profit they may have hoped for in November at some stage.

Like I said the other day, I'd just assume right now that there won't be any movement on this for at least 9 months, if not longer. The idea of having new owners within a month is not something I would agree with. Even Donald will likely absorb some short term losses until he knows he won't be compensated.

I don't believe Donald has either the funds or the wherewithal to go another 9 months. The guy must have been haemorrhaging cash since we didn't go up last season. I just don't see him being at the helm for much longer. Just my opinion by the way

 

[Kittenmittons]

I don't believe Donald has either the funds or the wherewithal to go another 9 months. The guy must have been haemorrhaging cash since we didn't go up last season. I just don't see him being at the helm for much longer. Just my opinion by the way

We were projected to make a profit this season of £5m. Obviously that will likely take a substantial hit, but with only 3 home games upcoming and most of the revenue from those games accounted for via season cards, I don't think this will immediately hurt him. He may even make money or break even in the short term because policing costs will not be paid on those fixtures. Player contracts expiring actually helps him to some degree, because our revenue may drop a substantial amount, but he doesn't have huge liabilities after June if things get utterly horrendous.

What will be interesting is what measures are put in place once football is ready to resume. It's looking likely any football this calendar year will be behind closed doors, but if short term financial help is offered, it might be enough for him to avoid serious loss. If it extends to a completely lost 2020/21 season, then yes in think he'd lose money, but there are a few ways he might be able to get short term aid to avoid a nuclear situation.

Again, I just think it's worth considering how volatile this situation is before assuming anything. There will be things that happen in the next 3 months that could well help or hinder Donald or FPP in their aims. I would suggest, with respect to everyone though, that SAFC will not be top of the priorities of any serious investor today or for a number of months.

 

[Smug in Boots]

This is the type of comment that, respectfully, doesnt need to be made. I'm making a point that the agreement they had was made at a time when the circumstances were wildly different in terms of investing in any football club. Turning this into a contest where people's motives are questioned just because they present an opposing viewpoint is madness.

Unless you're 'someone who's desperate for FPP to walk' it doesn't apply to you ...

... I certainly didn't have you in mind, it was just a general comment to Bob.

 

[Iansun]

Mad Bob reckons the loans gone, don't know if he means it's been paid back or what.

 

[DH4]

Mad Bob reckons the loans gone, don't know if he means it's been paid back or what.

As usual, Only Berb knaars what he means, nobody else does.

 

[Blond Bombshell]

Mad Bob reckons the loans gone, don't know if he means it's been paid back or what.

Gerrin, something must be happening

 

[Bob Cheval]

Bob, you said a few months ago that the club wasn't worth anything at all. Now it's £25m, so you'll forgive me for not treating this like the gospel.

What Donald needs or doesnt need is difficult to quantify at this stage of a huge spanner in football's works. There is a possibility that organised sport of any kind will be played behind closed doors for many, many months, possibly even over a year. PE people do like a potentially big return, but they also hate fundamental risks to a business, and right now, there is a short-medium term existential threat to not just SAFC, but football as a whole. They don't know what football looks like on the other side of this, let alone when or if we can turn the type of profit they may have hoped for in November at some stage.

Like I said the other day, I'd just assume right now that there won't be any movement on this for at least 9 months, if not longer. The idea of having new owners within a month is not something I would agree with. Even Donald will likely absorb some short term losses until he knows he won't be compensated.

A price of £25m would have implied the club was worthless as it came with £25m of parachute payments. If Short has taken those payments before he sold, Donald would have paid £12m, not £37m.

 

[Iansun]

A price of £25m would have implied the club was worthless as it came with £25m of parachute payments. If Short has taken those payments before he sold, Donald would have paid £12m, not £37m.

The fact that sartori paid 3 million for 20% would mean the club was worth 15

 

[Lozza80]

Well bob over the road is claiming that the loan has been paid back to fpp and there will be some kind of statement in the coming days

 

[sad-eyed prophet]

Mad Bob reckons the loans gone, don't know if he means it's been paid back or what.

He seems to be saying it's been repaid,which,if true,would mean FPP are no longer in the picture and their flirt with us is over. He's previously mentioned that he thinks tomorrow is a significant day for us,but I've always treated his cryptic comments with a deal of scepticism.This horrible virus is probably ****ing up any and every plan on a daily basis anyway.
I'm very pessimistic.....can't remember ever being this low about our prospects.

 

[Blond Bombshell]

The fact that sartori paid 3 million for 20% would mean the club was worth 15

Agreed

 

[kingkeane]

Well bob over the road is claiming that the loan has been paid back to fpp and there will be some kind of statement in the coming days

Has he ever been right because from his previous claims I've seen he's not got one right.