Sunderland have registered a new creditor

Sunderland have taken out a new loan from the Macquarie bank, documents filed at Companies House show.

A registration of a new charge have been filed at Companies House, confirming that the club have borrowed money from the bank secured against the Premier League TV revenue which will be paid early next year. Macquarie bank have previously had a number of similar arrangements with other Premier League clubs, including Wolves, Bournemouth and numerous others. It's an avenue sometimes used by clubs to manage their cashflow over the course of a campaign, with Sunderland investing heavily in all areas across the club following their promotion to the Premier League.

It does mean that Sunderland now have two creditors registered at Companies House, having earlier this year opened a credit facility with Akira BV. That company has very close links to Sunderland majority shareholder Kyril Louis-Dreyfus, as it is owned by the Louis-Dreyfus group of which Kyril's mother, Margarita, is Chairperson. That arrangement means that Akira BV hold a charge over a number of club assets, including the Academy of Light. It means that Sunderland no longer hold a debt-free position, having used the funds borrowed from Akira BV to clear the club's banking overdraft.

The deal with Macquarie bank was signed by Kyril Louis-Dreyfus, and witnessed by the club's new Chief Financial Officer Mike Papadimitriou. Papadimitriou assumed the role earlier this year as part of his wide responsibilities with the BIA Sports Group, which manages the sporting business interests of Louis-Dreyfus and Juan Sartori.

While the club's debt has steadily grown during the tenure of Louis-Dreyfus and Sartori, this has previously been mostly internal debt to their holding company, Mercator. This does not incur any interest costs to the club. As of the most recent accounts, that debt had grown to £19,820,000. The ownership group have consistently stated their intention to convert this into equity, though this at this stage has not yet occurred.

The new charge can be viewed here.

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Chief Business Officer David Bruce: Sunderland committed to long-term sustainability

The club's financial position was discussed at a recent meeting of the supporter collective, the minutes of which were released last week before the new charge appeared at Companies House.

Chief Business Officer David Bruce attended the most recent meeting of the supporter collective, in which a number of matters both on and off the pitch were discussed. Sunderland had a summer transfer window without precedent both in terms of spend and turnover as they built a new squad ready for the rigours of the Premier League, though their investment was offset by the sales of Jobe Bellingham and Tommy Watson to Borussia Dortmund and Brighton & Hove Albion respectively.

Bruce was asked by fans if the club was able to spend in January if required, and whether the summer spend had any impact on the club's position in regards to the Premier League's Profit & Sustainability regulations. Bruce replied that it did not, and added that while the level of spending undoubtedly came with some risk, the club were confident with their current position.

"IH [Ian High, Red & White Army] asked if the Club’s summer transfer business would limit further investment in January, should it be required. DB replied that the Club is prepared for every eventuality," the notes read.

"DB confirmed there are no current concerns relating to PSR. DB confirmed that the Club is working with long-term strategies across multiple scenarios for effective future budgeting and planning. Following a summer of unprecedented investment in the Club’s history, DB renewed the Club’s commitment to long-term financial sustainability. DB acknowledged the risks associated with any result-driven environment but expressed confidence in the Club’s operating model."

You can read the notes in full here.

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