SAFC reveals £10m liabilities
Sunderland AFC’s new owners have revealed they are looking into the possibility of taking out a short-term loan this summer.
The news has been met with caution from fans after it was suggested that the club is facing unexpected potential liabilities of £10million.
Sunderland AFC’s new owners have revealed they are looking into the possibility of taking out a short-term loan this summer.
The news has been met with caution from fans after it was suggested that the club is facing cashflow problems following back-to-back relegations.
Owner Stewart Donald says he is hopeful a loan will not be necessary, but that the club is facing challenges to deal with a raft of legacy transfer payments and a high wage bill.
He has also revealed unexpected potential liabilities of about £10million have emerged, with the club possibly facing further financial punishment over former player Ricky Alvarez.
The Black Cats signed Alvarez on loan from Inter Milan in 2015 and, after a lengthy court case, they were last year ordered to pay more than £9million for a player they never owned.
The prospect of Sunderland’s new ownership being forced to take out a loan just weeks into their tenure is not ideal, say fans, but they remain hopeful for the future.
Sunderland AFC Supporters’ Association chairman George Forster said: “Unfortunately, we aren’t a wealthy club any more. We can only hope things will turn out all right in the end.”
Paul Dobson, part of the editorial team at Sunderland fanzine A Love Supreme, said: “I’m an optimist and am hopeful there aren’t any cashflow problems.
“The new owners will be actively looking for more people to come in with the money to help them see through their long-term plans.”
Executive director Charlie Methven has described discussions regarding the possibility of a cash boost as “informal”.
The Alvarez case continues to cast a shadow over the club.
The original loan agreement said that, should Sunderland survive in the Premier League, the deal would be made permanent.
They stayed in the division but the Black Cats argued they could not be expected to sign him after he made just 13 appearances, mainly because of injuries.
Donald is hopeful external finance will not be needed.
He said: “As is common knowledge the club has a huge cash-flow requirement in the next couple of months, but in addition to this there is around £10million in potential liabilities that have emerged, mainly around legal disputes that were not expected.
“We are discussing these currently and hope to get them resolved without the need for external finance.
“The likely outcome is that the current and previous owners will settle these liabilities between them resulting in no external finance being taken.”