Sunderland face big financial challenges following their relegation to the Championship. Their latest accounts to July 2016 show a loss of £33m up from £26.6m. Only Chelsea and Aston Villa had higher losses and they had exceptional items in their accounts.
Sunderland face big financial challenges following their relegation to the Championship. Their latest accounts to July 2016 show a loss of £33m up from £26.6m. Only Chelsea and Aston Villa had higher losses and they had exceptional items in their accounts.
Turnover was up £7m to £108m, 13th in the Premier League, and they did make a small operating profit, but it was one of the lowest in the Premier League. Moreover, there was an outlay of £38.3m on gross transfer fees in the summer window, not that it did them much good.
Commercial income was up 23 per cent to a respectable £26m. Broadcasting income was up four per cent to £72m, one of the lowest in the Premier League due to a low finishing place. It will fall drastically in the Championship.
Debt stands at £110.4m, approximately half owed owner to Ellis Short and the rest in bank loans. Only ‘top’ clubs Manchester United, Arsenal and Liverpool have higher levels of debt. Interest payments of £7m were high on a turnover of £108m. Only Manchester United, Arsenal and Tottenham Hotspur paid more.
The wages to turnover ratio is a relatively high 77.6 per cent with wages up by nine per cent and were at a higher level than champions Leicester City. This was one of the worst ratios in the Premier League.
Average attendances held up at 43,071. However, match day income fell by three per cent to £10m, one of the lowest in the Premier League.
David Moyes hopes to stay on as Sunderland manager, despite some unrest among fans, and has had positive negotiations with Ellis Short and chief executive Martinn Bain. However, he is uncertain whether he will be given sufficient funds to rebuild the club and will not take a final decision until that is known.