The revelation that Sunderland’s shares are still in the hands of the previous regime, Madrox, has stunned fans this week. Many believed that Kyril Louis-Dreyfus had the majority of the shares with Madrox being marginalised. However, it emerged this week that Stewart Donald, Charlie Methven, and Juan Sartori still collectively own 59% of Sunderland’s shares.
Despite the news angering a large section of the Black Cats’ long-suffering fans, could this negative become a positive?
Sunderland’s Shares Revelation Could Become a Positive
The New Era Promised, Not as It Seemed
When Kyril Louis-Dreyfus bought into the club it was believed that this would be the end of Madrox at the club. Stewart Donald stepped down as chairman and it appeared that anyone connected to the previous regime was removed from the board.
When Juan Sartori returned to the board alongside a lawyer who had connections with Madrox, alarm bells began to ring. However, when questioned Louis-Dreyfus had a non-disclosure agreement to fall back on. When Charlie Methven began showing up at games again, though, questions were once again asked and this time they were answered. The response given was entirely unexpected.
Sunderland’s Shares Revelation Could Force Louis-Dreyfus’s Hand
Kyril Louis-Dreyfus is now a man under pressure to deliver a solution that can get fans back on side. It was believed that a new exciting era was on the horizon when he arrived at the club. The club; however, are still in League One and have now admitted that the previous regime is still heavily involved while holding a large portion of the club’s shares.
With unrest spreading amongst fans due to this recent revelation and the saga that went on when appointing a new head coach, it could force the hand of the current chairman into acting sooner rather than later. He must remember how important the fans are to the club, especially in League One when every penny is vital to the running of the club. They have stuck with the club as it fell down the English football pyramid, and must not be taken for granted. It is imperative that their voices are heard.
Chairmen are notoriously tough and not easily swayed by fan pressure. However, that of Sunderland is young and new to the world of being the main man. Could he take the approach of keeping the fans happy and show he means business by buying those shares currently owned by others?
If Madrox Are Willing to Sell, Now Is the Time to Buy
Previous owners Stewart Donald and Charlie Methven have said that they are willing to sell their shares. The question is, when? The feeling is that they would want to wait until the club gets promoted, therefore guaranteeing a higher price. However, if Louis-Dreyfus wants to get the fans back on side and potentially save himself money in the long term should he wish to remain at the club then buying the shares that Donald and Methven have would be a sensible option.
Should he wait to attempt to buy and Sunderland finally gain promotion, the price will rise and it may give Donald and Methven a reason to stay if another promotion looks possible. Selling in the Premier League could bring them riches they could only dream about.
Could a Positive Come Out of This?
The Premier League, while Donald and Methven are still holding shares is nothing but a distant dream at present. As shareholders, they are still putting money into the club but due to their own financial restraints, they could not match what the current chairman, a man with a trust fund of around £2 billion, can afford. For example, should Sunderland achieve promotion and wanted to strengthen their squad, Louis-Dreyfus could put millions into the club; however, those with the remaining shares would need to match it. It is unlikely that they could do so.
An outcome that could avoid major financial issues would be for Louis-Dreyfus to buy the shares currently owned by at least Donald and Methven. Doing so could win the fans back, give him the vast majority of the shares and potentially save him a lot of money in the process. The final decision obviously rests with the man himself but should he decide to increase his shares, then the current issues within the club could become a positive with the new era promised finally becoming a reality.
Time will tell if anything will happen but knowing Sunderland it would be of little surprise if this is yet another drawn-out affair. After all, this is the Sunderland way. Or at least it has been. Could the future be different?
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