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There are a couple of big myths surrounding #SAFC that, unfortunately, #SunderlandTilIDie2 has only bolstered. They're pretty key to the current situation the club finds itself in, so here goes...
Firstly, the idea that 'no one else would buy the club' has been allowed to proliferate. Charlie Methven said in the show "there was not a queue of ready buyers at the door".
When I spoke to CM over a year ago, he told me Ellis Short said pretty much the opposite:
When I spoke to CM over a year ago, he told me Ellis Short said pretty much the opposite:
There were others interested not mentioned to me by CM, but reported at the time. In addition, of all the groups interested, at least one (and I'm told more) agreed Heads of Terms on deals that ensured the entirety of #SAFC's debt was cleared without the need to use club funds.
That brings us onto big myth number two: the idea that the current owners walked into a club with an enormous gap between income and expenditure. An idea bolstered by this graphic in episode 2 of the new series:
That graphic would be fair enough, except for one thing: it completely ignores the £34.9m #SAFC received in EPL parachute payments in 2018/19.
Of that figure, the owners admitted £25m went towards their purchase of #SAFC. We were told it would be paid back, then that it wouldn't
Of that figure, the owners admitted £25m went towards their purchase of #SAFC. We were told it would be paid back, then that it wouldn't
In the series, despite telling fans repeatedly the club is "in cracking financial shape" and telling people like me we were wrong to raise concerns, Stewart Donald discusses "not having enough money" for the job. He complains the club will "cost £25m to run in League One".
The club had huge outgoings which needed to be brought under control. There is no contesting that and the current owners have scythed costs.
But the deal they made to buy the club DIRECTLY hampered the club's ability to move forward. It impacted the owners' ability to do the job
But the deal they made to buy the club DIRECTLY hampered the club's ability to move forward. It impacted the owners' ability to do the job
Over this season and last, #SAFC income is c.£90m. The graphic below shows how this compares to other L1 clubs. It is an enormous amount.
Yet the club still apparently costs £25m p/a.
There are no parachute payments next season.
Imagine how helpful that £25m would have been?
Yet the club still apparently costs £25m p/a.
There are no parachute payments next season.
Imagine how helpful that £25m would have been?
CM boasted about getting non-parachute revenues to £20m+ in 2018/19. But that was a year with (a) two runs to Wembley, with extra TV income as a result and (b) one were L1 was a novelty for #SAFC fans and saw bumper crowds.
Next season, income could feasibly drop to £15m or less
Next season, income could feasibly drop to £15m or less
While writing this I've seen CM has taken to the Chronicle to dampen down financial concerns (again). He talks of breaking-even at £20m.
Even if we take that income level at face value, where does that allow for signing new players? Improving infrastructure? Bettering the club?
Even if we take that income level at face value, where does that allow for signing new players? Improving infrastructure? Bettering the club?
The reality is the longer #SAFC remain in L1, the more income will fall. But a lot of costs won't, because of the size of the club's ground and the need to keep academy facilities up to scratch.
CM talks up "sustainability" so much because they are trying desperately to sell.
CM talks up "sustainability" so much because they are trying desperately to sell.
One of the most telling aspects of the documentary is SD's surprise that the playing staff wage bill is £34m. The owners bought the club in very rushed circumstances. A week before being announced, SD told BBC Radio Solent he was minority party and the deal was unlikely to happen
If this seems like going over old ground, it is for good reason.
The deal made when Ellis Short sold #SAFC had huge ramifications, ones we've seen this season and will continue to see if the club isn't sold any time soon.
The deal made when Ellis Short sold #SAFC had huge ramifications, ones we've seen this season and will continue to see if the club isn't sold any time soon.
