Why the balance of power has shifted in Sunderland takeover talks as Stewart Donald eyes sale

That’s according to football finance expert Kieran Maguire of the University of Liverpool, who believes that potential buyers could now hold the upper hand in negotiations.

The Black Cats remain on the market ten months after Stewart Donald announced his intention to sell, and The Echo understands that discussions are ongoing with interested parties – as they have been for much of the summer.

And while many feared that COVID-19 could deter potential buyers, Maguire believes that the current climate could actually see more investors enter the market – as they look to buy clubs at a knock-down price.

While Charlie Methven has confirmed that Sunderland will not be one of the casualties of the coronavirus, there are a number of clubs facing an uncertain few months ahead with major income streams cut-off.

As such, investors are seeing a chance to purchase sides as ‘distressed assets’, for a much lower fee than expected.

"It's a bit of a double-edged sword,” he said, speaking to The Echo.

"I deal with quite a few people who are interested in buying football clubs, and there seem to be more of them about than ever because we have seen during COVID that there have been quite a few winners among high-worth individuals.

"Some industries have done extremely well because of COVID and if you're one of the few then you find yourself a bit more wealthy - and the power in negotiations has shifted from the sellers to the buyers.

"This means that potential buyers of football clubs are going around looking for bargains and they are in a strong position to drive down the price. I don't think COVID will put buyers off, but they will be taking a look at things. “

A number of clubs have already shown that takeovers can be completed during the pandemic, with Wigan Athletic nearing a sale and Charlton Athletic already purchased by Thomas Sandgaard.

The Spanish-led deal for Wigan is particularly intriguing given the limited fee involved to purchase both the club and their impressive stadium.

There are mitigating factors, but Magurie believes deals such as this could act as a benchmark for other takeover attempts.

"Wigan are apparently being sold for between £3million and £4million, including the stadium which is an absolute bargain,” he added.

"That sets a benchmark against which other deals are going to be viewed. Wigan's circumstances are that they needed to be sold by the administrators, so that would have also driven the price down.

"But people will be looking for opportunities to buy football clubs as distressed assets, which is a horrible management term, and they'll be able to benefit from lower prices on the back of that.”

Donald has publicly stated that his asking price for Sunderland is £37.6million – although in an interview with the Echo earlier this year, Madrox claimed that price was ‘flexible within reason’.

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