Sunderland's £8.1 million loss explained and what you need to know after accounts released

Sunderland have released their financial accounts covering the clubs's second season back in the Championship.

The club have confirmed an operating loss £8.1 million for the period in question, down slightly from a loss of £9 million from their first campaign back at Championship level.

The drop in the club's financial losses were driven by a rise in turnover and a significant rise in profit made from player trading, primarily through the sale of Ross Stewart to Southampton. Those financial gains were offset by rising costs, with the club's wage bill continuing to grow as Sunderland plot their way back to the Premier League. The club also parted company with two head coaches, Tony Mowbray and Michael Beale, over the course of the campaign. The club's board also oversaw a significant summer of investment to make necessary improvements to the Stadium of Light, which in part explains the rising costs.

Sunderland's turnover for the year was £38,152,000, up from £35,543,000 the previous campaign. Gate receipts, sponsorship and revenues derived from retain and conference and banqueting all rose modestly during the period, bolstering the club's income. This was the final year of Sky Sports' previous TV deal with the EFL, meaning a modest rise in media revenue (around £400,000) should grow more when the accounts for this season are published his time next year.

While the sales of Stewart, Lynden Gooch and Isaac Lihadji were all included in this accounting period, Jack Clarke's move to Ipswich Town was not. That sale, which could net the club in the region of £15 million initially with future add-ons possible, will appear in the next set of accounts.

While turnover rose, so too did the club's operating costs. Those costs rose to £47,939,000 to £41,048,000 from in the last set of released accounts.

Wages and salaries rose to £28,219,000 from £22,869,000, while staff costs more broadly rose to £30,595,000 from £25,614,000.

The accounts also reveal that the club's debt to its parent company Mercator, owned by shareholders Kyril Louis-Dreyfus and Juan Sartori, has again grown. The debt now stands at £19,820,00, up from £18,050,000 in the previous accounting period. The club continues to insist this will be converted to equity, though this has not yet occurred.

In a statement accompanying the results, the club also confirmed that it had cleared its overdraft facility due to an arrangement from 'an entity associated with the Louis-Dreyfus family'.

The statement said. "SAFC’s banking overdraft facility, which stood at £8.2 million on 31 July 2024, has subsequently been cleared by the Club after securing a working capital facility from an entity associated with the Louis-Dreyfus family."

What Sunderland have said about their financial performance

The notes accompanying the accounts, signed off by Kyril Louis-Dreyfus, read: “Sunderland’s business model continued to leverage robust ticket sales and sponsorships, supported by strong season ticket uptake, reflecting solid fan loyalty. With over 35,000 season ticket holders, Sunderland maintained the highest attendance rates in the Championship, 9th highest in English football, ensuring the club drive consistent matchday revenue.

“Despite rising operational costs, partly due to the cost of living and raw materials, the club was able to maintain a stable financial footing, supported by prudent expenditure and strategic investments focused on long-term returns. Looking ahead, Sunderland AFC’s strategic focus on sustainability, fan experience and community-centred growth places it on a solid financial trajectory for the upcoming financial years. With ambitions to return to the Premier League, the club is positioned to capitalise on its investments, expanding its supporter base and elevating Sunderland’s regional economic impact.

“The balanced approach to growth, sustainability and fan engagement underpins Sunderland AFC’s strategy for resilience and continued success, aligning the club’s financial health with its community-centred mission.”

The accounts can be read in full here

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