Kieran Maguire: Sunderland facing 'reality check' after '£115m' crash confirmed
Sunderland are facing a reality check now that their parachute payments have ended.
That is the view of finance guru Kieran Maguire, speaking exclusively to Football Insider about the Black Cats’ annual report for 2020-21.
In the full accounts released last Wednesday (4 May), Sunderland revealed an £11.3million loss for the year ending 31 July 2021.
Revenue fell by 63 per cent over the same period, from £28.8m to £10.3m.
This was due to both the absence of matchday income for the Covid-hit campaign and the withdrawal of parachute payments.
The 2020-21 season was Sunderland’s third in League One and, unlike this season, they failed to secure a play-off spot.
Subscribe to Football Insider TV now
Maguire revealed that turnover has fallen by “£115m” since the Stadium of Light side were last in the Premier League in 2016-17.
“This was always going to be a reality check once the parachute payments ran out,” he told Football Insider‘s Adam Williams.
“Compared to the last season they were in the Premier League, revenue is down £115m.
“Parachute payments have allowed Sunderland to acclimatise to life in League One but wages are still 125 per cent of revenue.
“That is not sustainable without owner handouts as the club goes forward.”
Alex Neil’s side take a 1-0 advantage into the play-off semi-final second leg against Sheffield Wednesday on Monday (9 May).
The Daily Mail reported last Thursday (5 May) that William Storey has bid £42m to take over the club from its four-man ownership group.