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In depth look at Sunderland accounts

The authoritative Swiss Ramble has been taking a look at Sunderland's 2016/17 accounts which cover the season when they finished bottom of the Premier League and were relegated to the Championship.

The club significantly reduced loss before tax from £33m to £10m, though influenced by profit on player sales (mainly Jordan Pickford) rising from £5m to £33m. On the other hand, would have been break-even without exceptional £10m that the courts forced them to pay Inter for Ricky Alvarez.

Sunderland were the only club in the Premier League to report a loss in the 2016/17 season. The Swiss Ramble comments, 'This takes some doing in the first year of a spectacular new TV deal.'

Revenue grew £18m (17%) to £126m, entirely due to the new three year Premier League TV deal, which increased broadcasting income by £24m (34%) to £96m. Other revenue streams actually fell: commercial was down £4.3m (16%) to £21.8m, while gate receipts slipped £1.5m (14%) to £9.0m.

Revenue almost doubled from £65m in 2010 to £126m in 2017. However, almost all (£57m) of growth was due to new TV deals (2011, 2014 & 2017). Commercial only rose £8m, while gate receipts actually fell £4m. This is worrying, as these become more important in lower leagues.

£22m commercial income was a respectable 10th highest in Premier League. Shirt sponsor Dafabet increased from £5m to £6m in 2016/17 with the agreement running to 2019, while the long-term kit deal with Adidas, worth a reported £4m a year, runs to 2020.

The last time that the club made a profit was way back in 2006. Since then, they have reported losses for 11 consecutive years, totaling £214m (annual average £19m). No wonder chief executive Martin Bain said that the club has been haemorrhaging money'. In fact, of the 11 clubs that have been in the lucrative Premier League for the last six seasons, Sunderland is the only one that has lost money every year.

TV revenue was over £50m lower in 17/18 at around £44m, despite a £41m parachute payment, though significantly higher than the £8m most Championship clubs averaged. League One will see a further £11m fall to £33m, though this will be a hefty £30m more than other clubs.

The 67% wages to turnover ratio was 2nd highest (worst) in Premier League, only behind Swansea 77%, which included severance payments to two managers. There are some exceptions, but League One essentially restricts clubs to 60% (though includes player sales).

As Short admitted, 'overall, my chairmanship has not gone the way I would have wished.' The Swiss Ramble concludes, 'To be fair, he put in a lot of cash, but his appointments left a lot to be desired. The last two seasons have been disastrous, but there is hope with a new owner and the debts paid off.

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