True state of club finances still uncertain

WITH finances and takeovers a big talking point on Wearside, there will understandably be a lot of intrigue surrounding Sunderland AFC’s next financial accounts report, writes JAMES HUNTER.

They will show details of the club’s wealth - as well as crucially its debt. Or will they?

The accounts due to be released in April (April 28 was the date the Black Cats released the data last year) will cover a period between August 1, 2016 to July 31, 2017.

So while it will give us an indication of how much, if any, the debt fell between that period, it will be around nine months out of date.

Last year’s accounts showed the club to be a little over £110m worth a debt - with a percentage of that owed to owner Ellis Short (below) and the rest owed to the bank, with a huge interest rate added.

They were paying over £8m a year to the bank in interest on the debt alone.

Sadly, the accounts in April will not be a fair reflection of where the club are at now and will leave us no clearer in terms of the club’s financial health, or lack there of.

Since July 31 2017 the club have significantly reduced thir wage bill, made money on player sales and are known to have used that money to pay off some of the debt.

However, the accounts also will not show just how big an impact relegation from the Premier League will have had on the accounts, the club now missing out on a chunk of the huge TV money on offer in England’s top flight.

They receive parachute payments but they pale in comparison to the money they miss out on in TV rights packages and also competition prize money.

While April’s figures will no doubt still be interesting to view, they will not leave us any clearer on how things stand now.

That is of interest because it will be the current figures any potential buyer of the club will have access too when deciding whether to complete a takeover.

Owner Ellis Short is hoping to sell the club and some reports suggest he will let it go for very little.

Last year at the announcement of the financial report, Short said: “We acknowledge our financial performance must improve.

“It is not something which can be fixed overnight, however we have taken the first steps towards making the positive changes necessary.”