By David Owen
May 8 – Sunderland, condemned to play next season in the third tier of English football after consecutive relegations, managed to trim their losses in their last year as a Premier League club.
The Black Cats posted a pre-tax deficit of £9.9 million on turnover of £126.4 million for the year to end-July 2017, against a loss of £33 million on turnover of £108.1 million the previous season. The Wearside club would almost have broken even were it not for a £9.7 million exceptional item. This related to the €10.5 million that the Court of Arbitration for Sport ordered Sunderland to pay in June 2017 in respect of the transfer of Ricardo Alvarez from Internazionale.
The figures made the north-easterners the first of the Premier League’s class of 2016-17 to report a loss. They are, nevertheless, of limited significance both because of the double relegation and owner Ellis Short’s recent decision to sell up.
The new owners are an international consortium led by Stewart Donald, chairman of National League club Eastleigh. As part of the sale Short is agreeing to write off more than £100 million of debt.
The latest numbers show borrowings continued to rise in 2016-17, reaching £161.7 million by the year-end. Almost £91 million of this was due to group undertakings. In addition, there was a £70 million loan, expiring in August 2019, from Security Benefit Corporation. This carries an interest rate of 7.5% plus LIBOR.
Overall staff costs were up only marginally from 2015-16 levels at £84.4 million. The highest-paid director received £1.24 million.
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