News of FPP’s Investment of Sunderland AFC has developed further today. The American group have invested $12million into the club, however, details have emerged today which suggest it is a loan.
FPP Investment in Sunderland Appears to be a Loan
In documents publicly available via Companies House, Madrox Limited (parent company of Sunderland Limited) has registered a charge by lenders FPP Sunderland of $12million. The Stadium of Light and Academy of Light are used as security on the loan.
What Does This Mean?
Effectively, this latest development means that Stewart Donald, Charlie Methven, and Juan Sartori will have to pay the $12million back to FPP. The land secured against the charge can be claimed if the repayment are not met.
In laymen’s terms, the investment that has been spoken of since the summer is in fact a loan. Despite this change, it seems as though the plan to use the cash for the infrastructure hasn’t changed.
Talking to local press, Charlie Methven said, “Fixing the speakers at the Stadium of Light, for example, or the lift at the Academy of Light is broken and needs fixing. These are quite significant payments to make, and this new investment will help that and will, in the long term, ensure the club’s infrastructure remains of the highest standard.”
Despite the terminology changing slightly from investment to loan, the plan will remain the same from the clubs’ perspective. The only change is that the charge needs to be repaid.
The relationship built between FPP Sunderland and Sunderland has given fans respite from what has been an underwhelming season. Three American Billionaires taking over has provided escapism from the harsh realities of being a League One team.
Tensions are rising from the fans towards the ownership due to on-field issues, and this latest development will not calm the situation. Sunderland remain debt-free, only by virtue of the parent company. Madrox will surely be confident on a repayment to keep hopes of a takeover alive in the future. From a fans’ perspective, Sunderland’s recent financial woe definitely means this news raises blood pressure a little.
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