Stewart Donald has told Sunderland fans he is actively looking to sell Sunderland AFC, but is he complicating the matter?
Chronicle Live has learned that at least one group has contacted the Sunderland owner since the country went into lockdown to discuss a potential takeover, only to receive no follow-up correspondence.
It comes as supporters demand a change in ownership at the club, with Donald saying publicly that he will actively look to sell and not out-stay his welcome, although admitting he would be a ‘reluctant seller’.
Sources within the club claimed prior to the coronavirus outbreak, that caused a nationwide lockdown and badly affected the economy, that three groups were interested and going through due diligence.
BBC Newcastle have reported that a Saudi-based consortium saw an offer rejected in April because Donald had already accepted an offer from a preferred bidder.
Where that accepted offer currently stands is unknown, with Madrox - Donald’s holding company who own Sunderland AFC and all of its assets - admitting the global pandemic has slowed down the process of selling the club, while also confirming to Chronicle Live that conversations with interested parties 'remain ongoing’.
However, sources have told us that at least one group have reached out to Donald over a sale of the club but found the process slow and complicated, leading them to become frustrated and look elsewhere in their pursuit to buy an EFL club.
The group are not the first to accuse Donald of such things with Mark Campbell claiming Donald ‘moved the goalposts’ after initial negotiations. The Sunderland chairman denied this. Sammy Yu claimed he reached out to buy the club but received nothing back from the club, and ex-academy graduate Michael Gray claimed recently that a group he was connected with got ‘so far and then we kind of bounce back off the wall a little bit.’
That accusation follows reports that a takeover is being complicated because of the £20m issue in Sunderland’s financial books where the current owners used the club’s own parachute payments to purchase it from Ellis Short in May 2018. Donald has not denied this, and, despite removing the legal obligation to do so, has said he remains committed to repaying that money over time, some of which already has been.
Throughout any claims that Donald has been complicated to negotiate with, Madrox have always said that they will only sell to the right people who they believe would take the club forward and not endanger the club’s long-term future.
However, sources tell us of the group who have contacted Donald since lockdown in March are indeed serious. As well as financially well off, they have an exciting vision for the club to progress and even have lawyers in waiting ready to start a due diligence process as soon as possible, anticipating that it could be a lengthy process that takes months rather than weeks.
It is understood that the group reached out to Donald to express their interest and were told that someone would be in contact.
However, after waiting over a week with no contact, the group reached out to Donald again and received no reply.
Chronicle Live has seen evidence of the correspondence.
As for how serious their interest is, sources tell us that initial conversations with Donald didn’t get as far as providing any evidence, but that there was proof of funds ready when the club wanted to see them. Without any serious conversations beyond the initial contact to express interest, the group were never in a position to begin negotiating.
But Chronicle Live has been able to verify the group’s financial ability to buy the club and help it progress.
In response, Madrox told Chronicle Live: “Madrox has spoken to a number of interested parties throughout the last six months and conversations remain ongoing.
“We are not aware of any genuinely interested parties that have not received a reply.”
