Accounts from Sunderland show a £20.5 million hole that causes customers to steer away, Sportsmail exposed.
Last year we disclosed that majority shareholder Stewart Donald used Sunderland’s dividend payments to fund a part of League One club’s £37 m acquisition in 2018.
The Daily Mail and therefore the Times also released a confidential copy of the results for the year ended July 2019, revealing the club’s huge eight-figure coffer deficit. And as per the national sources, a spread of buyers who have tried to shop for or invest within the company are deterred by this big void.
The Mail and Times say the £20.5million shortfall within the record represents one among the bonus payments owed by Black Cats since their relegation to the Premier League. This number was reportedly used earlier to support the club’s purchase of Donald for £40million.
An investment company (Madrox Partners) arranged the acquisition and therefore the national media say that this £20.5million amount has been wont to help finance the sale. it had been previously suggested that the shareholders would repay the cash, but the report states that Donald and his fellow shareholders have now written off the cash by way of an ‘exceptional operating cost,’ which removes the cash
Sunderland responded that the cash would either be reimbursed as a donation or through shareholder funds. they assert this process has already begun but it’ll fancy being proved before the accounts for next year are released.
Would-be investors, however, say that no promise was made for the cash being returned during the takeover negotiations, with the selling price being about £35 m said.
The clarification given to us by the owners is that write off the debt was a condition of the £10 m loans they took from US investors FPP in October 2019, which had reversed their original intent to shop for the club after performing due diligence.