DONALD QUITS AS CHAIRMAN
OWNER FOLLOWS THROUGH ON PROMISE TO FANS
SO Stewart Donald has followed through with the promise he made at Thursday supporters’ group collective meeting on Thursday and resigned as Sunderland chairman.
There was a furious reaction from Black Cats fans to the notes which came from the meeting, as Donald blamed fans for their negativity, and claimed he’d received abuse.
His decision to step down as the head of the club’s board comes ahead of pivotal summer at the club, with the owner looking to sell, but the first team in dire need of investment.
So what does his decision to step down as chairman actually mean?
DAY-TO-DAY RUNNING OF THE CLUB
While initially very hands-on at the club as he and Charlie Methven worked to cut the club’s annual financial losses from around £30m to £5m, the wave of support towards Donald began to turn around last summer as the club failed to earn promotion from League One and it became clear Donald was trying to sell the club.
Eventually, as the relationship between owner and fans deteriorated so badly, Donald’s visits to Wearside became more infrequent and the club recently appointed Jim Rodwell as the new CEO.
As confirmed on Thursday, Rodwell and the other board members are now running the club day-to-day, with Donald saying he needed to step away.
His official resignation as head of the club’s board is more symbolic than anything, given he’d already effectively stepped away.
IS STEWART DONALD STILL THE OWNER OF THE CLUB?
Yes. Although he steps down as chairman, he is still the majority shareholder of Madrox – the holding company that owns the football club and all of its assets.
Until somebody buys the club from him, he will still be the owner – he is, symbolically at least, just going to be less hands-on with how it is run.
WILL HE STILL FUND THE CLUB?
In his statement announcing that he stepped down, he reiterated his promises from Thursday’s meetings that he will continue to fund the club to have the biggest budget in League One.
His quotes in the club statement said: “In recent months we have assembled a strong board with relevant experience and skill-sets. As the majority stakeholder, my remaining responsibility is to ensure that the club has the requisite financial backing to achieve its primary objective of promotion, and I can assure supporters that the club will continue to have the highest playing budget in this division.”
Essentially, Donald is now expected to be an owner much how Ellis Short used to be. He’ll financially back the club as he sees fit, but he will be trusting the board members with how they invest the money he does put in.
Financial director Neil Fox said in Thursday’s fan meeting that he was confident that if ever they went to Donald asking for money for whatever reason it would be provided by the owner.
SO THE CLUB WILL STILL BE ACTIVE IN THE SUMMER TRANSFER WINDOW?
Providing Donald keeps his promises, yes.
There is still the unknown of a potential salary-cap hanging over the EFL now, and that could really complicate matters for Sunderland this summer.
Manager Phil Parkinson has made clear his desire to strengthen his squad with seven to eight new signings this summer.
A salary cap could limit Sunderland’s ability to add to their
current wage budget, but under-21 players are exempt from that, so those working on recruitment will no doubt be planning for all eventualities.
Despite all the mess off the field, there is still quiet confidence around the club that, with the climate as it currently is because of coronavirus, the market could be in Sunderland’s favour this summer and they could assemble a very strong squad of players.
THE TAKEOVER
Donald’s announcement also covered his continued desire to sell the club.
He said: “My intention remains to sell SAFC to a suitable new owner, and
I remain personally committed to that goal.”
On Friday evening, speculation that something might be close was fuelled by the shock departures of key recruitment staff Richard Hill and Tony Coton.
Donald’s departure is only likely to add further fuel to the fire.
However, it is not understood that anything is close. Donald claimed on Thursday that there were no interested parties currently in the data room – which is where parties undertake due diligence to check the club’s financial records, among other things.
He named his price at £37.6m and said any interested party would receive access to the data room by providing proof of funds.
Donald is believed to be speaking to numerous interested groups, but nothing is believed to be imminent.
It’s understood his decision to step down as chairman is one he’s taken in appreciation of the ill-feeling of supporters towards him – more-so after Thursday’s comments. His hope is that this move will result in supporters focusing less on himself and getting behind the team on the pitch when football is able to resume. All at the club feel fan-backing is critical to any on-field success.
WILL HE BE REPLACED AS CHAIRMAN?
Yes. The club announcement said that a new chairman will be announced after the next board meeting.
It’s not known whether it will be an external or internal appointment, but the latter seems most likely.
He’ll financially back the club as he sees fit, but he’ll be trusting the board members with how they invest the money he does
put in