Sunderland AFC post losses of £27.9m
Wed 16th Feb 2011 | Money & Finance
Sunderland AFC have announced a substantial financial loss before tax, according to their latest account released this week.
The North East club posted losses of £27.9m for the year ending July 2010, a rise of £1.4m on the previous year.
However, turnover increased from £64.6m to £65.4m but the club's investment in the playing squad pushed them further into the red.
Despite the losses, the club is expected to continue to invest in the playing squad in order to maintain a lucrative position in the top flight and offset expenditure on transfers and wages, with the latter having risen by over £2m to more than £46m per year.
The report states: “The directors consider the major risk of the business to be a significant period of absence from the FA Premier League.
“Ongoing investment in the playing squad aims to reduce this risk.”
It’s understood that owner Ellis Short has stumped up interest-free loans amounting to more than £28m and has pledged his long-term support.
Niall Quinn, Sunderland’s chairman, hit out at fans staying away from the Stadium of Light in favour of watching live games in local pubs using foreign decoders. He warned that the reduced attendances at the ground were having a negative affect on the club’s ability to perform at the highest level.
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