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Stadium of Light: 3pm SUNDERLAND was a “bust business,” mired in £160million of debt, and on the brink of administration six months ago.
Mirror Sport can reveal the full details of their battle to survive off the pitch – coming back from the “dead” to mount a bid to go top of League One today.
Club director and shareholder Charlie Methven last night described the crisis he and owner Stewart Donald inherited as a “s**t show”.
He said: “Sunderland was the poster boy for worst-run club – and there’s a few contenders. It makes me angry how bad it was.”
A perilous financial situation is being worked through. Debts wiped off, income raised, tickets and hospitality sold, outstanding transfer payments settled... leaving just enough to mount a challenge.
“It was a shambles, a wreckage,” said Methven. “The place had been brought to it’s knees by the decisions of senior people over 10-15 years, not just the last two. Losing on the pitch was the symptom. It was an absolute disgrace. “It is like when a river builds up, silt mounts up, and then the river doesn’t flow properly.
“It was a succession of dire strategic decisions going back to when Bob Murray left the club.
“A culture grew, the business model was to run up a loss, and let a rich man in Florida sign a cheque.
“If it had not been for someone as good-natured as former owner Ellis Short (below) the club would have died. People in expensive suits and expensive offices were leaving it all to the whims of a wealthy man.
“This was a bust business. Only because Ellis wiped out external debt means it wasn’t in administration.”
Methven outlines the gory detail. New owner Donald negotiated a deal to pay around £40m for the club.
Short wiped out most of the debt. Projected income this season was £15.5m – but costs including the wage bill were £50m last summer. The club was still running coming down dramatically. He said: “We’ve got it to about £28m. Further efficiencies and cuts are needed and it’s harder and harder. We hope to be at £22m next summer.
“We are still losing money. By next summer, the loss since we came in will be