The takeover of Sunderland AFC: Everything we know right now and the crucial questions that remain

So what have we learned about the proposed takeover of the club, and crucially, what do we still need to know?

Here, we run through the key questions to be answered in the weeks and months ahead...

So, what do we know?

The Guardian reported on Friday afternoon that Stewart Donald has accepted an offer to purchase a portion of his shares in Madrox, the company through which he owns Sunderland AFC.

The new majority shareholders would be a consortium of current minority shareholder Juan Sartori, and Kyril Louis-Dreyfus.

Louis-Dreyfus is the son of Robert, formerly a majority shareholder at Marseille.

The deal was reported to be close, with due diligence already undertaken.

Sunderland have not commented on the report, but The Echo understands it is accurate.

Donald would retain around 15% of his stake in the club, with Charlie Methven also maintaining his small shareholding.

The news came a day after Sunderland CEO Jim Rodwell cancelled a planned meeting with supporter groups, citing an 'advancement' of the talks.

He said it would therefore be 'inappropriate' to discuss the matter.

And perhaps more importantly, what do we still not yet know?

One significant detail still unclear is what percentage Louis-Dreyfus has been in talks to buy, and whether there are set to be other parties involved in the consortium.

Sartori currently owns 20%, and it is not known if he is looking to increase this as part of the deal.

If he does not, then Louis-Dreyfus would quite clearly be the dominant shareholder.

If Sartori is also increasing his stake, and the pair of them will have a combined majority, then that significantly changes the dynamics going forward.

So what happens next?

Any deal will be subject to the EFL Owners and Directors Test.

The EFL recently changes its rules so that this hurdle must be cleared before any deal is rubber-stamped.

Only at that point could the parties involved conclude any deals officially.

There is no timeframe placed on the test, and that is particularly worth considering given the challenges the EFL is currently facing as a result of the COVID-19 pandemic. Of course, Donald, Methven and Sartori have all already passed the test, and so if the deal progressed as outlined, it would only be Louis-Dreyfus (or any other party involved) who would need to be assessed.

Donald agreeing to sell a significant portion of his shares does not at this stage mean that a deal is done.

There is still some way to go before that point, and that there has been no club comment underlines the fact that nothing is concluded at this point.

What will actually change?

This is the biggest question that supporters will have in response to the news.

Much of it depends on whether Donald and Methven plan to have any day-to-day involvement if and when a deal goes through.

Donald said earlier this year that he had understood the desire for his departure, and subsequently stepped down as Chairman.

Methven had resigned from the board months earlier, citing personal reasons. His relationship with supporters had deteriorated significantly, after he was forced to apologise for controversial remarks at a meeting with supporters.

With 15%, Donald's influence would clearly be reduced significantly, but whether that means he is stepping back entirely remains a crucial unknown.

Can we really expect to see Juan Sartori stepping up his involvement?

Sartori's next steps will be easier to discern when, as mentioned above, it is clearer whether he will be increasing his stake.

His involvement has been a key source of contention during Madrox's tenure so far.

Despite some high-profile trips to Wearside in the immediate aftermath of his arrival on the scene, repeated promises of increased involvement have yielded little tangible change.

Since becoming involved with the club, Sartori has launched a political career in Uruguay that appears only to be building, rather than dwindling.

In May, Madrox said that Sartori was still intending to move to London, but that this had been delayed due to the impact of COVID-19.

The question is whether the prospect of a greater ability to shape matters will tempt Sartori to make good on that talk of an increased influence.

So who would actually be running the club?

One of the first and most criticial decisions, should a deal progress to completion, would be the appointment of a new chair of the board.

This will give a major indication of who will ultimately be in charge of the day-to-day decision making at the club.

It will also give supporters a much clearer indication of whether this deal would mean significant change, or whether it would simply reflect a reshuffling of the current arrangements.

To this extent, the future of Jim Rodwell would also be instructive.

Appointed by the current board, his influence over the day-to-day operation is currently significant.

What does this mean for Phil Parkinson?

From the start of the summer, Parkinson has brushed aside takeover talk, stressing that on-pitch matters would be his only focus.

That was the message even an hour before the story broke, as he previewed the visit of MK Dons in his weekly press conference.

Parkinson confirmed that he had not, at this stage at least, had any dialogue with a potential new investor or owner (you may remember that Jack Ross confirmed he had met with the FPP group when they visited Wearside, before the nature of that deal changed dramatically).

This, though, he stressed was not a concern.

“It's totally genuine when I say that I just put it to one side,” Parkinson said.

“In previous jobs, when you are younger you can get wrapped up in it, waste time and energy on it, and there is enough to think about as a manager during the week anyway.

“Of course we want the future of the club to be as strong as possible.

“If a takeover is needed to do that, then I'm sure that Stewart Donald will make the right decisions.

“Equally, my job is to make sure we're in as strong a league position as possible. That's two-fold.

“One, if there is a takeover then great, it gives the new owners a fantastic platform.

“Two, for when our supporters come back to the Stadium, and that's our mini-focus.”

Parkinson said that should a takeover happen, he would look forward to meeting any new owner and discussing what he feels the club needs to go forward.

At this stage, there is no reason to think that his position will be altered significantly in the short-term.

Will this mean greater spending power for Sunderland?

Yes and no.

Parkinson had discussed the January window, and the situation at the club more generally, as part of Friday's press conference.

The Black Cats boss has had discussions with staff about what he would like to add in the transfer market, but his comments are worth dwelling on for a moment.

He stressed that given the salary cap rules introduced earlier this summer, Sunderland's immediate spending power is very limited no matter who owns the club.

The completion of this deal would not change the picture in any meaningful way in that regard.

Clearly, greater financial power would be utterly vital if and when the Black Cats were able to return to the Championship.

This, though, would also be one of the interesting aspects of any deal.

While spending on first-team wages is limited, investment in areas such as the academy and recruitment are not.

Discontent with the current regime goes well beyond two failed attempts at promotion.

A lack of long-term strategy across the club, as well as the loss of talented academy players, has been a major source of anger for supporters.

It is in these areas where attention is mostly needed, and where any new ownership structure would be first assessed.

What does this mean for the FPP loan?

In theory, the deal would be unlikely to significantly change the arrangement currently in place with FPP.

FPP's loan is with Madrox, the parent company through which Donald et al own Sunderland.

Donald has always said that the most likely arrangement for a takeover would be for a new investor to purchase Madrox.

If Louis-Dreyfus was to invest in Madrox, as seems the most obvious solution, then the relationship with FPP would be fundamentally unchanged.

So then, is it time to get excited?

Sources have stressed that there is a long way to go before this can be considered a done deal.

As such, caution is undoubtedly the best policy at this stage.

Beyond that, it will be incumbent on any new regime to show that there is a meaningful plan for the growth of the club in the years to come.

It is abundantly clear that greater investment and financial power is necessary if Sunderland is to get back to where it needs to be.

Above and beyond that, though, is the need for stability and consistency in decision making.

At this stage, we simply don't know enough to determine whether this deal will bring that.

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