Key unanswered questions, Cats’ next steps after ownership reveal
Kyril Louis-Dreyfus met with a number of supporter groups last night after a turbulent beginning to 2022.
A number of footballing matters will no doubt have been up for discussions, including the process to part company with Lee Johnson and the eventual arrival of Alex Neil. But the meeting would no doubt be dominated by discussions of what happens next at boardroom level.
It will be the first time Louis-Dreyfus has addressed supporters since his 41% share holding was finally revealed, and since both Stewart Donald and Charlie Methven went public with their desire to sell the remainder of their shares, even going so far as to name their price.
So what's the current situation,and what are the key questions to be answered next?
We take a closer look…
What have Stewart Donald and Charlie Methvens aid – and why?
Donald told BBC Radio Solent that he may well return to Eastleigh should he sell his remaining shares at Sunderland, which he hinted that he expects to happen.
Methven released a statement stating that he thinks 'all parties recognise that it’s time to close this chapter swiftly and reasonably.' Perhaps more importantly, however, he added that he and Donald value their combined 39% share holding at £11.7million.
While all parties wish to bring the matter to a conclusion, it is very clearly a matter of price and terms. Donald and Methven's comments raised the pressure on Louis-Dreyfus ahead of the meeting, when he will no doubt have been asked whether intendsto purchase at that price.
It's an important moment for Louis-Dreyfus, who is hoping to rebuild his relationship with fans after the widespread disillusionment that followed the protracted process to reveal his shareholding in the club, and the revelation that he did not own a majority.
What will Kyril Louis-Dreyfus do next?
Louis-Dreyfus initially wanted to take a more significant stake in the club, but when an agreement could not be reached he opted to do the current deal, whereby he took a minority share holding( though he is the largest individual shareholder) but assumed control of the club's day-to-day operations.
It's understood that he has subsequently made further attempts to increase his shareholding, but was again unable to reach an agreement. He remains keen on buying out both Donald and Methven, as Chief Operating Officer Steve Davison alluded to last month.
Methven says their current valuation is lower than it was a year ago, but it remains to be seen whether it has come down enough for Louis-Dreyfus to feel it is a transaction that makes sense. Donald and Methven will know he is under pressure to buy them out due to widespread disillusionment with their ongoing presence on the shareholding register, but he will be equally keen to make sure it is the right deal for him and the club.
How would the ongoing repayment of parachute payments be affected by a sale of shares?
This is one of the key questions around what happens next at Sunderland.
Though Donald and Methven say that they have continued to repay the parachute payments used to fund their purchase of the club, it is understood that they remain some way short at this point.
For guidance, the total still to be repaid at the point Louis-Dreyfus arrived is said to be have been around £11million. Madrox have said that around £8 million has been invested by shareholders since then, but that is on a pro-rata basis (so Donald and Methven will account for 39% of that).
Madrox are on record saying that will repay the parachute payments before they depart the club, saying in May 2020: "We are totally committed to replacing all funds as promised. Any potential sale would reflect this desire.”
It's an issue that will clearly act as an added complication.
What will Juan Sartorido next?
Sartori's 20% stake in the club makes him an important player, particularly given that he also sits on the board after initially stepping down in the immediate aftermath of Louis Dreyf us' arrival.
He has been an enigmatic presence since arriving on Wearside, often presented as a key figure in a brighter future by other members of the Madrox consortium even when his priority seemed clearly to be his political ambitions in Uruguay. There has been at this stage no suggestion that Sartori is looking to sell any of his shareholding.
Sources have also pointed out that despite his clear links to Donald and Methven, Sartori also has a long-standing and close relationship with the Louis-Dreyfus family.
At this stage, it appears he will play a role in Sunderland's future and there have been no indications at this stage that Louis-Dreyfus is looking to take 100% control.
Could a third party purchase Donald and Methven's shares?
In theory, Donald and Methven could look elsewhere should Louis-Dreyfus and/or Sartori are not willing to meet their asking price. However, whether they would be able to do that in practice likely depends on what the shareholder agreement says about the future purchase/ sale of any shares.
Given that Louis-Dreyfus has said that he accepted taking only 41% of the shares as there were strict guarantees of his control included, it would be a major surprise if he did not have some protection against such a significant transaction.
The shareholder agreement is confidential but it could be one area where Louis Dreyfus feel she canal lay possible fan concerns surrounding what happens next, if possible.