Cats’ estimated worth, what Donaldcangainfromhisstake
Stewart Donald’s shares in Sunderland would significantly increase in value if the club reached the Premier League – despite the former chairman holding just a 9% stake.
It was recently confirmed that current owner Kyril Louis-Dreyfus now owns 58% of the club (up from 51%), with Juan Sartori increasing his shareholding to 33% (up from 30%).
Donald sold his majority share to Louis-Dreyfus back in 2021 and his influence has slowly decreased since then.
When Donald took charge at the Stadium of Light, it was later revealed Donald and his holding company, Madrox, used parachute payment money due to the club to help meet the price paid to former owner Ellis Short.
"Trying to work out Stewart Donald’s motives have always been a bit strange,” football finance expert Kieran Maguire said.
“There would be a lot to be said about him walking away from the club altogether when he sold it to LouisDreyfus.
“He effectively used the club’s parachute payments to fund his acquisition so he’s not been a significant contributor.
"He used some of his money to buy some of the shares from Ellis Short, so that was the extent of his arrangement.
“It’s more of an issue of Louis-Dreyfus, once he got to 51% he could then control the business on more of a day-today basis and that was the key number.”
However, it has always been argued Louis-Dreyfus had day-to-day control from day one through the shareholder agreement in place.
Maguire added: “What we’ve seen here is just a slow squeezing out of Donald’s influence on the club.
"I don’t think he’s had any involvement as far as the directors were concerned once he’d relinquished his majority stake.
“This is more sort of a private trading deal between the individuals. It has no impact on the finances of the club itself.”
Sunderland’s value has increased following their promotion from League One, when Donald and former shareholder Charlie Methven
valued the club at £30 million.
“I think Stewart Donald still feels that should Sunderland get promoted to the Premier League he will be able to get a higher price for his remaining 9% than if he sold his shares now,” Maguire added.
“As a Championship club they are probably worth in the region of £50-£60million. If you get promoted you can add £100million onto the value.
“From Donald’s point of view if he holds onto his 9% investment then he sells out it would be somewhere in the region of £15million.”
After reducing his stake in Sunderland, ownership rules allow Donald to take up an active role elsewhere, while he’s expressed a desire to return to former football club Eastleigh where he was club chairman for seven years.