Finance guru: Sunderland in ‘danger’ as £19m blow confirmed
EFL clubs like Sunderland are at the mercy of their owners’ business fortunes – and that is a particular “danger” during periods of financial crisis like the pandemic.
That is the view of finance expert Doctor Dan Plumley, speaking exclusively to Football Insider about the latest annual accounts from Madrox Partners.
Madrox is led by Sunderland co-owners Stewart Donald and Juan Sartori, as well as former director and minority shareholder Charlie Methven.
Per a submission to Companies House last Sunday (31 July), the group lost £18.5million in the Covid-hit 2020-21 financial year.
Plumley explained how the pandemic has highlighted the worrying overreliance of clubs on their owners.
“Madrox partners are in the business of operating sports facilities, clubs and real estate,” he told Football Insider’s Adam Williams.
“Those things would have been impacted by the pandemic. But there is also stuff to consider with the movement of figures around between businesses.
“A lot of what has contributed to that big loss is the fact that they have moved some fixed assets from Madrox Partners in SJD Leisure Holdings, which is owned by Stewart Donald.
“It doesn’t shift the dial too much, but if you look at those accounts, there is effectively a £3m profit.
“I would come at this from a wider ownership point of view in football. The challenge for clubs is that they are reliant on owners, whose businesses can fail.
“The pandemic has hit owner and investor businesses as much as it has hit the football club. So, it highlights the reliance of clubs on their owners and the danger involved in their investments going up and down.”
In other news, Kieran Maguire lambasts EFL “bluster” as “£10m” Sunderland windfall on the cards.