Phil Smith's Sunderland Q&A: Takeover insight, League One latest & a January window preview

The club announced that a deal had been agreed for Kyril Louis-Dreyfus to assume the controlling stake in the club from Stewart Donald had been agreed, pending EFL approval.

With the January window nearing and the club still dealing with the impact of a COVID-19 outbreak, there was plenty to discuss with readers in our weekly Q&A.

You can read what was discussed below...

Is the Northampton game in any danger? What happens to the season with the outbreaks that have happened across the league and how is it going to affect Sunderland?

Saturday’s game is going ahead as it stands.

Sunderland are preparing to play, with more players able to come out of isolation today.

So unless there is an issue at either club between now and then, it goes ahead.

As for the season more generally, the EFL have continued to stress that there are no plans to pause or postpone the season.

The situation in League One is going to be immensely challenging, given that there are only five of the 12 scheduled fixtures going ahead tonight. As it stands the league believes there is time in the calendar to complete the campaign, but very obviously that will become harder if there are repeat outbreaks in the weeks and months ahead.

The EFL say they’re confident in their protocols, but we all know how fast these situations can change and the likelihood is that the debate will intensify in the coming weeks.

For now, Sunderland simply have to press on as usual.

Fixture congestion is clearly going to be a challenge in the second half of the campaign but it can’t be an excuse.

The salary cap may have levelled the playing field to a certain extent but their squad is still deeper than most, particularly when you bring the U23 players into the picture.

They should be able to cope better than most.

How advanced is the takeover and how far away is it from being completed?

The EFL Owners’ and Directors’ Test is the only hurdle left to clear.

No one involved in the process is expecting any issues from what remains a relatively limited test.

We will have to wait a while yet for confirmation but the process is very, very close to being concluded.

What changes do you expect we’ll see once the takeover is done?

Some of the critical changes have already happened.

Kristjaan Speakman was appointed by the current board, but his vision and brief fits firmly with that of Kyril Louis-Dreyfus, who we understand had a role in the process.

This extends to the appointment of Lee Johnson. Those two key decisions in terms of the footballing operation can in some ways be seen as the first steps of the process.

Louis-Dreyfus has outlined in his first statement that he wants the club to be ‘at the frontier of innovation and research’, and has promised a modern approach.

So the key changes I would expect to happen would be surrounding investment in areas of the club that are currently hugely underpowered after Madrox’s two-and-a-half year tenure.

Recruitment and the academy are the two most obvious departments.

There are currently vacancies for head of player recruitment and academy manager, which are vital positions where the right appointment must be made.

Then there is a need for significant investment into the club’s data analysis operations.

It’s these long-term, structural decisions that are in need of the most attention.

Yes, there is likely to be investment in the playing squad but the salary cap limits that and there is a huge emphasis on player development for the new regime.

Hence why Speakman has been appointed as Sporting Director, as someone with a background in academy development, rather than recruitment.

We will hopefully also see a more proactive approach in terms of communicating clearly and consistently with supporters.

As the excellent statement from the Red & White Army said after the deal was announced, there will be a groundswell of support for an owner who is committed to the club’s long-term growth and stability.

Clear communication will allow the club to move forward from what has been a hugely acrimonious and draining period.

If the EFL give approval of an additional shareholder will our club be run by committee? IE: Methven, Donald, Sartori and Louis-Dreyfus? Who will the CEO report to if still there?

Is Louis-Dreyfus bringing anybody with him (not financially) to advise maybe add to the boardroom?

It’s a fair question and supporters will still be keen to ascertain exactly how the shareholding breaks down as a result of the deal, and where the power lies as a result.

There are a few things we can say with a degree of certainty.

The deal will see Louis-Dreyfus assume a controlling stake, which will ultimately give him the capacity and scope to make key decisions.

He is also set to assume the role of chairman, which indicates he is intending to have a significant input on the direction of the club and will be the key voice moving forward.

The day-to-day operations will be led by Kristjaan Speakman on the footballing side, and the CEO on administrative/business side. Jim Rodwell said he was unsure what the future held for him when he discussed the potential deal a few weeks ago, but the statement announcing Speakman’s arrival said they would work closely together.

Either way, the CEO and the Sporting Director will report into Louis-Dreyfus as chairman.

Donald has made it a matter of record that he will follow from ‘afar’, and that is consistent with our understanding through the process that he is planning to step away entirely for decision making at the club.

The roles, if there are any, for Sartori and Methven remain unclear.

Sartori was initially touted as being a key part of the deal, but was not mentioned in the club statement and has seemed clear for a prolonged period that his ultimate priority is the progression of his political career in Uruguay.

So there are still absolutely some unknowns about Sunderland’s new direction, but it is clear that the strongest and most important voice is going to be that of Kyril Louis-Dreyfus.

He will undoubtedly look to have a trusted team around him, and it would not be a surprise to see one or two additional changes to the current structure.

Can a 23-year-old really be capable of running a club the size and with ambitions of Sunderland and do you see this as a step forward?

Those who have had contact with Louis-Dreyfus through the process have been impressed with his vision and realism.

He is clearly very young when it comes to being chairman, but he and his family have a firmly-established connection and understanding of the game which will be a major bonus.

This strikes me as a big step forward, with a long overdue focus on the structural issues that have blighted the club for so long.

It’s refreshing and encouraging to hear a prospective new owner talking of investment in innovation, as the club has been significantly behind the curve in a lot of these developments.

It’s worth remembering that Johnson has already discussed at length about the need for investment. He hasn’t been talking about first-team players, but the kind of technology and innovation that was always accessible to him at Bristol City.

The alignment that now seems to be there across key figures at the club is exciting.

I’ll go back briefly, though, to that excellent statement from the Red & White Army.

There have been lofty promises aplenty in recent years and after bitter disappointment, any scepticism should be seen by the new regime as a healthy desire to see tangible progress.

A new owner should embrace that, knowing that the reward of winning that trust through good decision making and long-term planning will be the welcome of an immensely passionate and loyal support.

Have our transfer targets been identified for January window if indeed we are buying any players?

January looks a tricky transfer window with the salary cap and the takeover not quite through yet. How do you see the strategy for the window developing? Will we see players let go mid season to make room for new?

It is a tricky window, without a doubt.

As it stands, Sunderland have only one space available in the squad for a player over the age of 21, and it’s no secret that they are running close to the cap in terms of their salary.

It’s a difficult balance, when promotion is anything but certain and the challenge of the cap next season would be even more difficult (particularly with so many players entering the last six months of their deal).

Johnson has already hinted that the loan market could be key, mentioning his strong connections with top Premier League clubs as a result of his time at Bristol City.

Broadly speaking, he feels he has a strong squad on the whole, just one that lacks a couple of key ‘attributes’.Pace is top of that list, so it follows that the forward areas are a priority and he has said he doesn’t mind an addition being ‘raw’, if they bring other skills to the party.

He has outlined three ways he can improve the squad. Make additions, bring players up from the academy, and offload current players to create room.

Jack Diamond has certainly made his case, but it would be no surprise if there was some turnover to allow Johnson to mould the squad more in his image.

The issue here, as it was last January, is whether there would be a suitor for those on the fringes of the squad currently.

Many of those not playing regularly at the moment would represent a significant investment for other clubs at League One level, and in the current climate that presents an obstacle.

The one positive of this current break is that it has allowed some time and space for Johnson and Speakman to assess exactly where things stand and what needs to be done in the window.

They have been speaking daily about targets and in that regard, the takeover is unlikely to add much in the way of complication.

Do you think we’ll see any of the young players go out on loan next month?

It’s a definite possibility.

I don’t envisage there being a raft of outgoing loans, as it’s worth remembering that much of the recruitment into the U23 side this summer was to ensure that the team could be competitive in Premier League 2 action. It’s been so far, so good on that front and the balance between results at that level and exposure to senior football for those who need it is one that needs to be maintained.

Phil Parkinson said at the start of the season that Jack Diamond and Dan Neil would stay with the senior group until January, when a loan would be considered if they had not broken into the side on a regular basis (Benji Kimpioka was also in this category after he eventually signed a new deal, but he is not expected to return from a hamstring injury until the end of January anyway).

It’s fair to say that Diamond’s recent performances under Lee Johnson have made that a debate we can quickly bring to a conclusion.

He’ll have a big role to play for the rest of the season and it’ll soon be time to talk about a new contract.

As for Neil, a loan might be an option worth considering.

The key thing to say here is that by his own admission, Johnson did not have a huge knowledge of the Sunderland squad when he took the job. The Black Cats opening came around quickly and most of his background research was for other clubs he was potentially joining.

It’s this break from action that has allowed him to dig a little deeper and assess his options more closely. Neil, and the rest of the academy players, will have been a big part of that and so it will be interesting to see what conclusions have been arrived at.

With Elliot Embleton fit again, though, there is fierce competition for places. Neil has time on his side, but it’s important that Sunderland don’t repeat past mistakes and prevent him from getting the senior football he will need to realise his potential.

Anthony Patterson is the other likeliest candidate for a loan.

He has been linked with Hamilton Academical and the Scottish Premiership would be a really good level for him to develop at.

Johnson rates him highly, as he believes his management of the box is superior to a lot of other young goalkeepers who are good shot stoppers but struggle with the other aspects of the job.

Lee Burge, though, has been steady and looks likely to keep hold of the number one spot for the foreseeable.

The significant caveat to the question of loans is that we don’t yet know the full long-term impact of the COVID-19 outbreak, and whether it will lead to any longer absences for any players.

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