By David Owen
May 5 – Relegated Sunderland have reported a loss as they prepare for life in the second tier of English football. The Wearside club reported an after-tax loss of £33 million for the year to 31 July 2016. This is down from a loss of £26.6 million the previous year.
While many Premier League clubs have reported a deterioration in financial performance for the period in question, the last season of the old TV deal, the result ensures the Black Cats remain among the biggest lossmakers in the division.
In summary information published on the club website, Sunderland said that 2015-16 turnover reached £108 million, an increase of £7 million year-on-year.
Operating profit edged up from £1.1 million to £1.5 million. However, with the club committing to gross transfer fees of £38.3 million during the 2016 summer window, player trading/amortisation costs rose to £26.4 million from £20.5 million in 2014-15.
In somewhat brighter news, net debt fell to £110.4 million from £133.2 million, while year-end cash stood at £26.9 million, up from £2.5million.
Ellis Short, chairman, said: “We acknowledge that our financial performance must improve significantly.”
He added: “It is not something that can be fixed overnight, however we have taken the first steps towards making the positive changes necessary by restructuring the club at senior level, including the appointment of CEO Martin Bain last summer.”
While 2016-17 might bring better news on the financial front, consolidating the desired improvement as a Championship club is likely to be a tough task given the sharp reduction in TV revenues the club can expect as a consequence of relegation.
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