Stewart Donald is preparing to arm Sunderland with a 'hefty' budget for League One after completing his takeover of the club.
And the club's new owner confirmed that he paid Ellis Short a fee of £40million to secure the club - although that won't all be paid up front.
Donald is the club's new majority shareholder and was unveiled to the press alongside associate Charlie Methven who is a fellow director on the controlling company.
And the duo revealed the sum - and finer details - of the deal that saw them take control of the Black Cats.
"We've given Ellis £40m, so that's the deal, and in return Ellis has tidied up his debt and that's now gone from the football club," said Donald.
"Ellis was very clear he didn't want the debt, but we didn't want the debt either so we refused that.
"The reality is Sunderland is debt-free which, for the fans, is good news."
Methven added: "Just to be quite clear on that, this summer people who follow the Sunderland situation closely will understand that there's a considerable cash requirement this summer.
"The discussion with Ellis was that we would be able to pay him over a period of time because he knew that we were going to have quite a lot of investment that needed to be made this summer.
"As Stewart said the price was £40million and Sunderland are debt free."
With the takeover now completed, Donald is prepared to arm his new manager with a transfer budget that he feels would be the envy of clubs higher up the football pyramid.
"Looking at the numbers we have put through, the budget for Sunderland is going to be pretty hefty for League One," he admitted.
"It's going to be a lot more than any of the teams that got promoted last season had got.
"It's going to be a good budget for Sunderland and I'm sure it's a budget one or two Championship clubs would like."