View: Sunderland financial position demonstrates stability under Kyril Louis-Dreyfus
Sunderland recorded an operating loss of £9m for the year ending July 2023 while a finance expert has claimed the club could owe almost £25m in bonuses.
One thing that has drastically improved under the current regime at Sunderland is the club’s finances and stability as a club moving forward.
It was reported by Roker Report when quoting now-former shareholder Charlie Methven back in 2018, that the club had previously seen an operating loss of £30million and with the club in League One at the time.
Methven said: “When we took over, the club’s revenues minus the parachute payments were about £16 million a year, and the costs around £45million, so an operating loss of £30million. Because of the parachute payment of £34million, they reckoned that made the club profitable, but it doesn’t, of course. Those payments are supposed to give you a bit of breathing space to restructure. They are not an ongoing part of the club’s revenue base.
Fast forward to today, Sunderland find themselves in a much more stable condition in that regard, with an operating loss of £9million for the year ending in July 2023, as reported by the Sunderland Echo. Whilst that figure demonstrated a bigger loss than the season in which Sunderland got promoted, wages and TV exposure played a part.
It has been reported in Sunderland AFC news, that the Black Cats could end up paying out up to £24.7million in bonuses come the end of the current season.
What do the £24.7m in bonuses mean for Sunderland?
Ultimately, Sunderland have been able to assemble a squad capable of fighting for promotion at such a small cost due to several other factors and clauses they insert into deals. Many of these include future incentives such as sell-on clauses or payouts when a player reaches a specified target.
Finance expert Adam Williams discussed the bonuses and explained why Sunderland fans shouldn’t really look too much into them in the interview with Sunderland AFC news.
A good example to use was the sale of Jack Clarke, who left the club for a reported initial fee of £13.5million. The Black Cats inserted a sell-on clause in that deal that would see the club receive income from any future sale of Clarke and it is a similar story for many of Sunderland’s recent signings.
The likes of Pierre Ekwah and Dan Ballard are just two players to have been signed from Premier League clubs for a low fee but with a sell-on clause included meaning any future sale would see Sunderland pay a ‘bonus’.
Another common clause in transfers nowadays involves performance-related bonuses. Let’s say if a player reaches 50 appearances, the club will owe the selling club £2million, as an example.
That is where the potential payout comes from and will certainly be something the club have considered for the future.
What can’t be in question, is the club’s current stability under the reign of Kyril Louis Dreyfus who has certainly steadied the ship on Wearside.
In other Sunderland news, Sunderland maestro Jobe Bellingham has been praised by former Black Cats player Martin Gray.
For more Sunderland news, follow us on Facebook or join our brand new WhatsApp Channel for instant updates to be sent straight to your phone.