Dallas Exec Ellis Short Assumes Largest Share Of Sunderland
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American Becomes Largest Single
Shareholder Of Sunderland |
Dallas-based equity firm Loan Star Funds co-Founder Ellis Short has become the "largest single shareholder" in English Premier League (EPL) club Sunderland, according to Paul Kelso of the London TELEGRAPH. Short is "understood to own more than 30[%] of the club after being invited to take advantage of a summer rights issue." Along with his investors, Short is "thought to have injected [US$55.3M] into the club's summer transfer" funds (London TELEGRAPH, 9/26). The TELEGRAPH's Kelso notes Short is the "fifth American-based businessman to take a significant stake in [an EPL] club in the past two years." Short's "decision to become the largest shareholder provides Sunderland with valuable stability as they attempt to consolidate their position" in the EPL. Short "has backed an agreement" that the club's ownership group "will guarantee the club's revenue at an agreed level, thought to be in the region of [US$110.5M], for the next two seasons" (London TELEGRAPH, 9/26).
RELEGATION FIGHT: In Manchester, Andy Hunter reports as many as 12 players on English Football League Championship club Sheffield United's '06-07 team may sue EPL club West Ham United "for loss of earnings," claiming that then-West Ham F Carlos Tevez "should not have been allowed to play such an influential role in West Ham's escape from relegation" during that season. Sheffield was relegated from the EPL following the '06-07 season when it lost out to West Ham, and Sheffield's players "would have been entitled to a substantial bonus for keeping the club in the [EPL]." In addition, some of the players "suffered pay cuts between [30-50%] when they were relegated" (Manchester GUARDIAN, 9/26).
INJURY TIME: In London, Rob Stewart reported investment firm Seymour Pierce Chair Keith Harris, whose company was hired by Newcastle Owner Mike Ashley to help "find a purchaser to take the club off his hands," has "ordered that an inventory of [Newcastle's] assets should be painstakingly drawn up." As a result, the sale of the team could "turn out to be a protracted affair." Ashley bought Newcastle in '07 for US$247.7M, and spent US$202.7M "to cut their debts." Ashley earlier this month announced his intention to sell the club, and a group of Nigerian businessmen "are already in the running and interest from the [U.S.], Kuwait and the Far East is starting to solidify." Sources said that Ashley "does not expect the club to change hands before the end of next month at the earliest" (London TELEGRAPH, 9/25).
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