Furlough and finance: your Cats questions answered
So much is unknown and up in the air at Sunderland, and elsewhere of course.
Here, our Black Cats writer Phil Smith answers your questions about all aspects of the club...
How bad would it be financially if the season had to start again and Sunderland were in League 1 for another season?
I don’t think there’s any hiding from the fact that it would bring challenges.
Crucially, Sunderland will be without parachute payments for the first time since their relegation from the Premier League.
They received £15 million this season so when you add that to the revenue they are currently losing in the current crisis, it’s a significant shortfall that has to be addressed.
It’s been well documented that the thorny issue of TV money will be significant if the season has to start again.
That’s probably a bigger issue for Premier League clubs but it’s another factor.
There’s a few other things to consider, of course.
The cost base at the club has come down, though the overheads obviously remain significant.
The incredible loyalty of supporters and season card holders makes a major difference, and the government decision to offer a year-long holiday on business rates will be hugely helpful in both the short and medium term.
These things put Sunderland in a better position than some other clubs but it goes without saying that a third season in League One was never part of the plans.
For now, we can still hope that the season is concluded and that Sunderland get the chance to push themselves up the table.
What are your views on player contract renewals due to the current situation, and with possible limited finances now will it be a big game-changer in quality we might try to go for?
Every single club is going to be affected by this crisis, so it’s not something that will hamper Sunderland solely when clubs are able to go back into the market for players.
I suspect the game is going to change immeasurably as a result of this and you would expect there are going to be significant discussions around cost and wage controls if clubs are to come through this.
It has simply highlighted the unsustainability of how many clubs operate.
This is a long-winded way of saying that I don’t think Sunderland will be affected more than other clubs when it comes to wage demands and fees in the transfer market.
What will be a gamechanger is whether they are entering that market as a Championship or League One club.
Why does Stewart Donald want to sell the club now and why does he not just stay at Sunderland? Where is the sale process at?
I think the recent series of Sunderland ‘Til I Die highlighted that Stewart Donald believes that the club needs investment if it is to be competitive in higher divisions.
That’s ultimately the biggest driver and we have seen that in the talk to sell a majority stake to Mark Campbell’s consortium and then the FFP group.
What has clearly changed since the documentary was filmed is that Donald does not seem any longer to be pursuing a deal that would see him maintain a relatively significant input/stake in the club.
The breakdown in the relationship with many supporters behind that has come about for many reasons...
A disappointing season on the pitch, not helped by a summer of uncertainty and disruption.
The circumstances surrounding Charlie Methven’s departure from the board, the ongoing confusion of Juan Sartori’s role, and the concerns over the running of the club as a result of these things.
In terms of the sale itself, the current crisis has clearly slowed the process down as everyone tries to get their head around what the longterm implications of this crisis could be.
Sunderland have for their part stressed that talks are nevertheless continuing with ‘quality’ interested parties.
What are your thoughts on the club’s decision to furlough the players?
There are probably a couple of things to stress first and foremost.
Sunderland are far from the first club in the EFL to do this, and far from the first in League One.
Some promotion rivals have also gone down this route, in Portsmouth .
From a business point of view, it’s a better decision (in my view) than asking for pay deferrals, which really just means kicking the can down the road and creating a problem to be addressed on another day.
Realistically, Sunderland are also still going to be paying the vast majority of player wages, as they will be topping up everything over and above the £2,500 per month available on the government job retention scheme.
I think there’s a lot more understanding of clubs down the pyramid taking this option, as opposed to Premier League clubs posting big profits whilst taking advantage of the scheme.
I think many, many more Football League clubs will take a similar option in the coming weeks.
I can nevertheless absolutely understand any discomfort people feel with it, especially if clubs are in a position to avoid it. That’s the hardest part to judge from the outside looking in, and makes it difficult to offer a definitive judgement.