Sunderland owner Kyril Louis-Dreyfus is in talks to boost the club’s finances, but it is not clear why he wants to strike such a deal at this stage of the season.
With 11 games to go, Sunderland are chasing promotion to the Premier League. It does appear the Black Cats will have to settle for a place in the play-offs, though, after a couple of defeats saw them slip away from the automatic promotion race.
Regis Le Bris’ men are fourth in the Championship table right now, with a nice cushion between themselves and the chasing pack behind them.
But, as the players and coaching staff prepare for the crucial run-in, it seems the club’s owner, Kyril Louis-Dreyfus, is plotting something big off the pitch, too.
Sunderland want £35m loan from MSD Holdings
According to a report from Alan Nixon on Patreon, the Sunderland owner is now in talks with esteemed financial lender MSD Holdings with a view to securing a £35m loan for the club.
The move comes as something of a “surprise”, with Nixon describing the timing of such a deal very “odd” given Sunderland current situation in chasing promotion to the Premier League and the considerable prize pot that comes with that.
It is known that the American group has previously held investments with Sunderland in the past, and Louis-Dreyfus is now looking to call on that relationship to boost the club’s finances.
The loan is thought to include a £5m-per-year interest charge. However, why Louis-Dreyfus is keen for this deal, and why now, remains to be seen.
Nixon also questions the motives behind the potential loan, suggesting that Sunderland have plenty of players they could sell for ‘big money’ in the summer.
Indeed, Chris Rigg and Jobe Bellingham’s price tags alone could bring in more than that £35m. But, it is thought Louis-Dreyfus wants the funds ‘quicker’ rather than waiting until the summer.
Is this an insurance policy in case Sunderland miss out on promotion?
It’s very possible Louis-Dreyfus has his own, hidden motive for wanting this money right now for Sunderland, but it’s hard not to wonder whether this is all a contingency plan to cover for the possibility that the Mackems might miss out on promotion this season.
Look at it this way: if Sunderland were to succeed, they can pay the loan back and then some thanks to the promotion prize fund. However, if they fail at this attempt, Louis-Dreyfus will know the club has a solid financial footing to go again next season.
He may essentially be taking a £5m gamble in order to chase down a promotion that can be worth upwards of £100m in the long run for clubs who make it to the top flight.
Louis-Dreyfus was praised for his ‘ambition’ not so long ago, and if the motivation for this loan is to help push Sunderland over the line in search of promotion, then fair play, you can’t fault the owner.
Finance expert Kieran Maguire recently claimed Sunderland are following a similar model to that of Brentford and Brighton in achieving success; which is, for want of a better word, a very ‘sensible’ and patient approach.
Perhaps this loan is a sign of Louis-Dreyfus wanting to speed things up slightly? Indeed, if Sunderland did have £35m to play with in the summer as a Championship club, that would make them very dangerous.
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