Pandemic’s huge impact on income

PROMOTION and the return of fans is what Sunderland desperately need from a financial standpoint – regardless of the prospective takeover.

That is the view of football finance expert Kieran Maguire, who believes the Black Cats are set to earn a fraction of what they raked in from their debut League One campaign.

Sunderland’s accounts for the financial year ending July 31, 2019 revealed the club had an income just shy of £59m, a drop of £5m following relegation from the Championship.

Since these accounts were published, the early conclusion of the 2019/20 campaign due to the Covid-19 pandemic condemned the Black Cats to a third season in League One.

The current season started following a six-month gap and Sunderland seem set to play out the entire campaign in the absence of supporters.

Price of Football podcast host Maguire believes the behindclosed-doors fixtures and the latest League One season without the benefit of parachute payments means the Black Cats’ income is likely to drop by almost 80%.

Maguire said: “Sunderland made £59m in 2018/19, and that is when they were in receipt of parachute payments.

“Under the EFL TV deal, clubs in League One get around £1.5m from solidarity payments.

“If we look at the present season, you strip out match-day revenues and Sunderland are going to be lucky to get more than £10m-£12m total income compared to £59m in 2018/19.”

Promotion to the Championship would see Sunderland’s income from the current TV deals in place jump from £1.5m to about £7m.

■ SUNDERLAND have been ordered by the Court of Arbitration for Sport to pay former Inter Milan midfielder Ricky Alvarez almost £5m to compensate for loss of earnings.

The winger was supposed to join the Black Cats from Inter Milan in 2015 after a loan spell but Sunderland tried to pull out of the arrangement due to an injury sustained by the player.

After a lengthy legal battle, the Wearsiders claimed the agreement to sign Alvarez on a permanent deal was invalid because of his injury issues.

Alvarez’s loss of earnings challenge was partially upheld and the compensation figure was set at £4,770,000.