Finance gulf ‘huge’ impact for any buyers

FOOTBALL finance expert Kieran Maguire says the £20.5m hole in Sunderland’s accounts will have ‘huge repercussions’ for anyone interested in buying the club.

Reports in the Daily Mail and The Times based on leaked documents claim that Sunderland owner Stewart Donald has written off the sum – which is said to represent funds from a parachute payment due following the club’s relegation from the Premier League – as an ‘exceptional operating expense.’

It has previously been reported that the money was used by Donald to part-fund the purchase of the club through the holding company Madrox Partners, although it had been suggested that the money would later be repaid to the club.

Donald, who is actively trying to sell the club, says he still intends to repay the money either by way of a ‘gift’ or ‘shareholder funds,’ however writing the money off as an exceptional operating expense means there is no longer a legal obligation to do so – although there is no suggestion that this breaks any rules.

And Maguire, a senior teacher in accountancy at the University of Liverpool, has explained the implications of the move.

“This has huge repercussions for anyone buying Sunderland,” he told TALKSPORT.

“They have looked at the numbers and said ‘well, where’s the money going to come in from?’

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