During last night’s RAWA AGM, Stewart Donald confirmed that Ellis Short has written Sunderland’s debts off.
However, Donald also confirmed that Ellis Short has also left some of the debt that was outstanding via SBC. Essentially, debts owed to Short himself are wiped clean, yet a debt owed to SBC still technically remains.
That being said, Donald noted that Ellis Short will pay that debt off as Stewart Donald pays for the sale of Sunderland AFC. Where things become somewhat tricky though is the fact that SBC are content with that arrangement - but they wanted the repayments secured against the Academy of Light.
As the elevent hour of negotiations passed, Short said his bank required the deal to be secured against the Premier League parachute payments, too.
Subsequently, Donald conceded to that stipulation, yet argued that if this was to be the case, then the bank shouldn’t need the deal secured against the AoL as well. Ultimately, though, in order to ensure the deal was in fact finalized Donald conceded charges on both the parachute payments as well as the AoL.
For those feeling a prickly sweat forming along their brows, Donald did note that Short cannot just take the money if he’s not paid; instead, he would have to pursue that money via legal means.
Simultaneously, however, there is charge on a bank account, and if there is money within that account Short could take it if he is not paid for the sale of the club.
A fee of £5 million in charges has already been paid, and so far the debt is down to £25 million where it is currently being paid as per the original agreement.
Donald said he has been talking to Short recently and the price was more like £40 million - though other outstanding liabilities bring the fee closer to £60 million. Donald argued that he has the funds to cover that, but all debts to Ellis Short will be gone in 18 months.
Ultimately, should things go to plan, fans needn’t worry about the arrangement and the use of the AoL and the parachute money as collateral. However, should Stewart Donald and co. fail to pay their repayments on time, then this discussion could take a turn for the worse. Here’s hoping Stewart’s Donald is timely in paying his bills.