Sunderland Financial Update: Season 2025/26
- Matchday Finance
- 12 hours ago
- 11 min read
This report examines Sunderland's 2025/26 season from a financial perspective. Although the club's official financial results will not be published until March/April 2027, the key drivers of revenue, costs and funding are already visible, allowing us to build a reasonable estimate of Sunderland's financial position at the end of the season.
The analysis is based on publicly available information and our own estimates. As such, it should be viewed as an informed assessment rather than a definitive set of financial results. The report is published before Sunderland's financial year end of 31st July 2026. The report will be updated with any events prior to year end, such as if a player is sold.
Sunderland's seventh-place finish in 2025/26 and qualification for the Europa League was a remarkable achievement and one of English football's most compelling turnaround stories.
Following successive relegations from the Premier League and Championship between 2016 and 2018, the club spent four seasons in League One, the third tier of English football. Promotion back to the Championship was secured via the play-offs in 2021/22, before Sunderland completed their return to the Premier League, again through the play-offs, in 2024/25.
This revival has taken place under the ownership of Kyril Louis-Dreyfus, who holds a 64% stake in the club, and Juan Sartori, who owns the remaining 36%, following their acquisition of Sunderland in 2021. At just 29 years old, Louis-Dreyfus is one of the youngest owners in English football. Despite his age, he brings substantial financial backing as an heir to the Louis-Dreyfus family fortune, built through the global commodities trading business Louis Dreyfus Company.
Perhaps most impressive is that Sunderland's resurgence has, to date, been achieved with relatively modest levels of owner funding. With losses kept under control, the owners have provided only around £45 million in loans since the acquisition of the club, with no additional equity injections.
In an era when many clubs rely heavily on owner funding to pursue promotion, Sunderland offer a relatively rare example of sustained progress being achieved in a prudent and financially sustainable manner. By comparison, fellow promoted side Leeds United have received approximately £280 million of funding to support their own return to the Premier League.
Financial Base (2024/25)
The club's latest published accounts relate to the 2024/25 season, in which Sunderland secured promotion from the Championship.
Sunderland's turnover of £40 million ranked sixth in the Championship, behind the clubs benefiting from parachute payments and Bristol City. Despite having the largest stadium in the division, relatively low revenue per spectator meant matchday income reached £13 million, the second highest in the league but still less than half of Leeds United's £32 million.
Staff costs increased sharply to £64 million, although this figure included substantial promotion-related bonuses, which we estimate were worth between £15 and £20 million. These higher costs were largely offset by the sales of Jobe Bellingham and Tommy Watson, which generated approximately £46 million in player trading profits.
As a result, Sunderland reported a net loss of £4 million, an improvement on the £9 million loss recorded in the previous year.
The club has no immediate Profit and Sustainability concerns. Over the three-year assessment period, cumulative losses total around £22 million, but these would be reduced by the exclusion of promotion bonuses and other allowable deductions, including academy investment, women's football expenditure and depreciation on fixed assets. Based on our estimates, Sunderland would therefore have an adjusted Profit and Sustainability result of approximately £10 million.
Following promotion, Sunderland moved decisively to strengthen the squad, investing close to £220 million in new players. Given the club's 31st July year-end, around £148 million of this expenditure fell within the 2024/25 financial year, alongside the proceeds from the sales of Bellingham and Watson.
Financial Estimate 2025/26
With the club now benefiting from Premier League central broadcasting distributions, we estimate revenue will increase to around £213 million in 2025/26. Staff costs are projected to rise to approximately £195 million and we forecast a pre-tax loss of between £5 million and £15 million.
The club is expected to remain comfortably within the current Profitability and Sustainability Rules, generating an estimated adjusted profit of around £10 million over the relevant three-year assessment period. Looking ahead, Sunderland will instead be assessed against the Premier League's Squad Cost Ratio (SCR), which is set at 85%, as well as UEFA's own SCR threshold of 70% given their participation in European competition. We estimate the club's 2025/26 SCR at approximately 73%, which would exceed UEFA's current limit. However, it is too early to assess compliance for next season, particularly as participation in the Europa League will provide an additional source of revenue.
Future funding requirements will depend largely on the payment structures associated with the approximately £220 million invested in the playing squad. While 2025/26 obligations may be manageable through operating cash flows and existing cash reserves, additional financing is likely to be required over the coming seasons.
The club is in a truly unique position: a newly promoted side with relatively low levels of debt, significant headroom under financial regulations, a strong and valuable squad, and the prospect of European football ahead.
Turnover
Overall, we estimate Sunderland's turnover will increase to approximately £213 million in 2025/26, up from £40.2 million in the previous season. This would place the club around 15th in the Premier League revenue rankings.
Broadcast
Participation in the Premier League brings substantial revenues through the league's centrally negotiated broadcasting and commercial agreements. The 2025/26 season marks the beginning of a new domestic and international media rights cycle, with total distributions to clubs expected to increase by around £320 million to almost £3.9 billion, driven primarily by growth in international broadcasting revenues.
Approximately 63% of these distributions are shared equally among clubs, equating to around £100 million per club. However, much of the incremental income generated under the new cycle has been directed towards merit payments, increasing the financial importance of league position.
As a result, we estimate Sunderland's seventh-place finish will generate approximately £168 million in Premier League distributions, comprising around £100 million from equal share payments, £53 million in merit payments and £16 million in facility fees, reflecting their 22 live televised matches during the season.
Matchday Income
Following promotion, the club implemented the expected price increases, with season ticket prices rising by around 10%. Given that Premier League clubs host 19 league matches compared with 23 in the Championship, this translates into an effective increase in revenue per match of approximately 33%. On this basis, revenue per supporter per game would rise to around £18.00. However, this could increase further once higher-priced premium seating, elevated non-season ticket prices and the standard £30 away ticket allocation are taken into account. We therefore estimate average matchday revenue of around £20 per supporter per match, broadly in line with Burnley, Sheffield United and Ipswich during their recent Premier League campaigns.
Sunderland averaged 46,824 spectators for league matches in 2025/26, the ninth-highest attendance in the Premier League and equivalent to 95.5% of stadium capacity. Combining this with our estimated revenue per supporter, together with income from domestic cup fixtures, where gate receipts are shared, we expect Sunderland's matchday revenue to increase to around £19 million, up from £13.3 million in the Championship.
Commercial Income
Sunderland have been relatively guarded in disclosing details of their commercial agreements for 2025/26. The club signed a one-year front-of-shirt sponsorship deal with betting company W88, which was described as "the biggest commercial partnership in the club's history", although no financial terms were disclosed. Other significant commercial partners include kit manufacturer Hummel and sleeve sponsor LiveScoreBet.
Based on comparable agreements at other clubs, we estimate these partnerships collectively generate between £10 million and £14 million annually, compared with around £4 million in 2024/25. Shirt sales and other retail income are also likely to have increased following promotion, particularly as the club continued to exceed expectations on the pitch throughout the season.
The club also derives commercial income from hosting concerts and other non-football events at the Stadium of Light. During 2025/26, the venue hosted Take That's Circus Live Summer Tour and staged the opening match of the 2025 Women's Rugby World Cup in August 2025, providing additional opportunities to diversify revenue streams beyond football operations.
Overall, we estimate that other commercial revenue has risen from £11 million to approximately £14 million, taking total commercial income to around £26 million in 2025/26.
Squad and Staff Costs
Our estimates suggest that, following the club's investment in the playing squad, the squad will have a book value of approximately £172 million as at July 2026. Total staff and squad-related costs are projected to increase to around £195 million, up from £64 million, comprising salaries and wages of between £140 million and £150 million and player amortisation of approximately £50 million. Profits from player sales are expected to remain relatively modest at around £7 million.
Squad
As noted, Sunderland invested close to £220 million in new players (including agents fees) following promotion, effectively transforming the squad ahead of their return to the Premier League. With many of the new signings playing pivotal roles during the season, the club's recruitment strategy appears to have been highly successful.
Based on total minutes played across all competitions, players signed after promotion accounted for 72% of the squad's playing time. There were several standout contributions, including goalkeeper Robin Roefs, signed from NEC Nijmegen for £10.1 million, leading scorer Brian Brobbey, captain Granit Xhaka, and midfielder Enzo Le Fée, whose move from Roma was made permanent following his loan spell.
Several players also made the step up successfully from the Championship, most notably Northern Ireland internationals Daniel Ballard and Trai Hume, alongside highly rated academy graduate Chris Rigg.
From a financial perspective, an investment of £220 million represents one of the largest outlays ever made by a newly promoted club. However, Sunderland were operating from a relatively low squad cost base and entered the season from a position of financial strength, with no immediate Profit and Sustainability concerns.
Although this level of expenditure inevitably carried significant risk, the team's performances and seventh-place finish have left both the squad and the club in a strong financial position.
Based on current valuations from Transfermarkt and other sources, we estimate the squad's market value at around £370 million, comfortably above the estimated book value of £172 million and also above the estimated £240 million invested in transfer fees + agent fees. While market valuations are inherently imperfect, they provide an indication that Sunderland have increased the value of their playing assets and retain the potential to generate significant profits from future player sales if required. Notable increases in value have been recorded by Robin Roefs and Noah Sadiki, alongside established members of the squad such as Trai Hume, Daniel Ballard and Chris Rigg.
Staff Costs
Estimating player salaries is inherently challenging, particularly in the absence of detailed contractual information. However, given the scale of Sunderland's recruitment following promotion, we would expect total wage costs to sit towards the middle of the Premier League range, at approximately £140–150 million.
Amortisation is more predictable, as it can be estimated from transfer expenditure, assumed agent fees (estimated at around 10% of transfer costs) and the length of player contracts. This estimate is aided by the fact that much of Sunderland's squad investment is recent, limiting the impact of contract renewals and extensions. On this basis, we estimate annual player amortisation at around £50 million.
Taken together, this implies total staff and player-related costs of approximately £195 million. Based on Premier League clubs' 2024/25 financial results, this would place Sunderland around 15th in the league by personnel expenditure.
Profit from Player Sales
As noted, Sunderland's two most significant recent player sales—Jobe Bellingham to Borussia Dortmund and Tommy Watson to Brighton—were both recognised in the club's 2024/25 financial results.
Since then, the club's only notable departures have been Pierre Ekwah, who joined Saint-Étienne for around £5 million, and Patrick Roberts, who was sold to Birmingham City in January for approximately £4 million. On this basis, we estimate profit on player sales for 2025/26 at around £7 million.
It should be noted that Sunderland's financial year ends on 31 July, meaning additional transfers could still be completed before the year-end. This analysis will therefore be updated should further player sales occur.
Profitability
To summarise, we estimate that Sunderland's revenue will increase to around £213 million. Salaries and wages are expected to rise to between £140 million and £150 million, while player amortisation is projected to reach approximately £50 million following around £220 million of investment in new signings. Profits from player trading are expected to remain relatively modest, with the club likely to generate only around £7 million from player sales.
Combining these assumptions with higher operating costs, increased depreciation, and greater financing expenses associated with an estimated £100 million of outstanding transfer liabilities, we project a pre-tax loss in the range of £5 million to £15 million.
Regulatory and Compliance
The 2025/26 season is the final year assessed under the current Profitability and Sustainability Rules (PSR) framework. Based on our estimates, Sunderland face no PSR concerns. Using the midpoint of our projected profit and loss range, the club is expected to record aggregate pre-adjustment losses of approximately £23 million over the three-year monitoring period.
We estimate allowable adjustments—comprising investment in the women's team, academy, community programmes and infrastructure—to total around £33 million across the three years. It should also be noted that promotion bonuses paid in 2024/25 are only deductible in the season in which they are paid and therefore can only be included in the club's 2024/25 PSR calculation.
Based on these assumptions, Sunderland would generate a cumulative adjusted profit of approximately £10 million over the three-year period, comfortably within the permitted loss threshold of £15 million.
It should be noted that while the permitted losses under PSR are £13 million per season in the Championship and £35 million per season in the Premier League, these limits are reduced to £5 million per season where no equity funding has been provided, which is currently the case at Sunderland
Squad Cost Ratio
From 2026/27, the Premier League introduce the Squad Cost Ratio (SCR) as its primary financial control mechanism, broadly aligned with UEFA's squad cost rules. However, the Premier League threshold will be more generous, allowing clubs to spend up to 85% of adjusted revenue on squad costs, compared with UEFA's 70% limit.
The SCR is calculated as squad costs divided by adjusted revenue. Squad costs include player and head coach wages, transfer fee amortisation and agents' fees. Adjusted revenue comprises football-related income plus a rolling three-year average of player trading profits and losses.
Based on our 2025/26 estimates, Sunderland's SCR is approximately 73%, comfortably below the Premier League proposed 85% threshold, but marginally above the UEFA limit which will be relevant next season when the club competes in the Europa League.
Cash Flow and Debt
As noted previously, Sunderland's revival has been achieved with relatively modest levels of external funding. Since the club's acquisition in 2021, it has received only £45 million in loans (£25 million from third parties and £20 million from related parties) and no additional equity injections.
Cash Flow
After investing close to £220 million in players over the last two seasons, it is likely that additional funding will be required. However, the timing of any funding requirement depends heavily on the payment terms agreed for these transfers.
The 2024/25 accounts provide some insight into this dynamic. Of the £148 million of player investment recognised during that financial year (including agent fees), £115 million remained payable to other clubs, with £101 million due beyond one year. As a result, the immediate cash impact in 2024/25 was relatively modest, with only around £7 million paid to other clubs during the period.
Rolling this forward into 2025/26, with a further £75 million invested in players and total investment over the two seasons reaching approximately £220 million, we estimate that transfer liabilities outstanding to other clubs could rise to around £120 million. This would imply a cash outflow relating to player acquisitions of approximately £70 million during the year.
At the end of 2024/25, the club was also owed £26 million in transfer receivables, of which £20 million was due within 2025/26. With only limited player sales during the season, we estimate cash inflows from player disposals at around £20 million.
Combined with an estimated £10 million invested in stadium and training ground facilities as the club continues its infrastructure upgrades, we estimate net investment cash outflows of approximately £61 million. This figure should be treated as indicative, as it is highly sensitive to the payment structures agreed on player transfers.
Based on our estimates, the club is likely to generate strong operating cash flows of around £45 million. However, this should also be viewed as a guide, as working capital movements and the timing of receipts from season tickets, commercial agreements and other revenue streams can have a significant impact on cash generation.
If these estimates prove accurate, any remaining funding gap could be covered through existing cash reserves.
Football Net Debt
Assuming the above projections are broadly accurate, total borrowings would remain at around £45 million, although this should be viewed as indicative, as the club may still seek additional financing to support future investment or restructure existing loan facilities.
Transfer liabilities remain the most significant balance sheet item, with fees payable to other clubs projected at approximately £120 million. While additional funding may not be required during 2025/26, it is unlikely that future operating cash flows alone will be sufficient to meet these obligations alongside any further investment in the playing squad. As a result, additional financing is likely to be required over the coming seasons.
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