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Sunderland Financial Results 2023/24

Sunderland recently celebrated a monumental achievement, securing promotion to the Premier League with a dramatic victory over Sheffield United in the play-off final. This marks their return to the top flight after a challenging seven-year absence, including four seasons in League One.

Sunderland recently celebrated a monumental achievement, securing promotion to the Premier League with a dramatic victory over Sheffield United in the play-off final. This marks their return to the top flight after a challenging seven-year absence, including four seasons in League One. The play-off final, often described as the "richest game in football," guarantees an estimated £170 million in Premier League central distributions over the next three seasons, even if Sunderland is relegated after just one. This financial windfall is poised to transform the club's economic landscape in the coming years. However, the challenges ahead are substantial—not only in their fight for survival in the Premier League, where no promoted side has managed to stay up in the last two seasons, but also in navigating the complexities of financial management. Sunderland faces a delicate balancing act: investing enough in their squad to compete at the highest level while ensuring they don't saddle the club with long-term financial burdens. The club has already signaled a prudent approach, emphasizing that short-term decisions will not jeopardize their long-term stability. So far in this transfer window, Sunderland has been a net seller of players, with Jobe Bellingham and Tom Watson departing. However, this is likely to change as the transfer window progresses, with several players reportedly linked to the club. Encouragingly, Sunderland’s youthful squad has outperformed expectations relative to its cost, achieving promotion without the benefit of Premier League parachute payments—a significant accomplishment in Championship football. In this post, we take a closer look at Sunderland’s financial results from the 2023/24 season, their most recently published accounts. These provide valuable insights into how the club has managed its finances during a period of significant transition. The 2023/24 season was a disappointing one for Sunderland on the pitch. After reaching the play-offs the previous year, the team fell to 16th place following a mid-season collapse, including a run of seven consecutive defeats. This poor performance led to a managerial change, with current manager Régis Le Bris taking charge at the season's end. Ownership of the club remains in the hands of Kyril Louis-Dreyfus, who holds a 64% stake, with the remaining 36% owned by Juan Sartori. At just 27 years old, Louis-Dreyfus is one of football's youngest club owners. Despite his age, he brings significant financial resources to Sunderland, being an heir to the Louis-Dreyfus fortune amassed through the French multinational Louis-Dreyfus Group. Under the current ownership, the club has taken a measured financial approach. There has been no reckless spending, with the owners demonstrating patience during their four-year stay in League One. That said, investment has still been made—with £19.8 million owed to the parent company as of the end of the 2023/24 season. The stated intention is for this amount to be converted into equity in due course. Matchday Finance's unique platform puts the power of analysis in your hands. Whether you're a fan, journalist, industry expert, or investor, all the key numbers are right at your fingertips. Overview of Sunderland's Financial Results Season 2023/24 Overall revenue saw a modest rise to £38 million, driven by growth across all key income streams. Increased staff costs, which rose by £5 million, were offset by a £9 million profit from the sale of Ross Stewart, leaving the club’s pre-tax loss steady at around £8 million. Financial Highlights for the 2023/24 Season: Turnover Sunderland’s turnover rose to £38.1 million in 2023/24, up from £35.5 million the previous year. Among clubs not receiving parachute payments, this was the second-highest in the Championship, behind only Bristol City. Broadcast income totalled £10.4 million, in line with other clubs outside the parachute system. Matchday revenue increased by £1 million to £11.6 million, despite fewer home fixtures than the previous season. Higher attendances — the best in the league — helped drive this growth. Sunderland ranked fourth in the Championship for matchday revenue. Commercial revenue also improved, rising £1 million to reach £16 million for the year. Staff Costs Total wage costs increased from £25 million to £30 million, while amortisation charges rose to £4 million. Despite these rises, Sunderland’s total staff costs of £35 million ranked only 12th in the Championship — less than a third of the wage bills of the three clubs relegated from the Premier League. The sale of forward Ross Stewart was the main contributor to £9 million in profit from player trading. Profitability The club posted a pre-tax loss of £8.6 million, broadly in line with the £8.9 million loss recorded in the prior year. Player Trading Sunderland invested £7 million in new signings, slightly below the £7.7 million spent in 2022/23. These funds were spread across several acquisitions. With £9 million generated from player sales, the club recorded a net transfer surplus of £2 million. Football Debt The club owes £19.8 million to its parent company, Mercator Investment, which is 65% owned by Kyril Louis-Dreyfus and 34% by Juan Sartori. Additionally, Sunderland has an £8.2 million bank overdraft. A further £8 million is owed to other clubs in unpaid transfer instalments, bringing total football-related debt to £36 million — the 16th highest in the division. Cash Flow Operating cash flow was negative £9.6 million before investment and financing activities. Net spending on player acquisitions amounted to £0.7 million, with an additional £3.5 million invested in infrastructure and facilities. To bridge the funding gap, the club drew down an additional £1.7 million in loans and made full use of its £8.2 million overdraft facility. Financial Outlook The financial results for the 2024/25 season are expected to show an increase in costs, with promotion likely triggering a number of bonus payments. However, these will be more than offset by substantial profits from player sales. The departures of Jack Clarke, Jobe Bellingham, and Tom Watson are set to generate around £50 million — a figure that exceeds the club’s annual turnover. While some of this income will inevitably be reinvested in replacing those players and strengthening the squad, those costs will largely be reflected in future accounting periods. As a result, the club is well positioned to report a strong profit in its promotion-winning campaign. Next Read For a full breakdown of the Premier League’s 2023/24 financial results, check out our recent blog: Premier League Financial Results Season 2023/24 Turnover Sunderland had modest growth in all main revenue streams. Their total revenue ranked seventh overall in the Championship and was the second highest among clubs not receiving Premier League parachute payments. Matchday Revenue Matchday revenue is influenced by factors such as the number of home games, average attendance, ticket prices, and the club's ability to generate income from hospitality events and corporate boxes. The only exception to this is domestic cup matches, where revenue is shared between the clubs and the FA. Sunderland’s home ground, the Stadium of Light, has a capacity of 48,707, the largest capacity in the League. During the 2023/24 season, the club averaged 41,028 attendees for league matches—which ranked the highest in the Championship, 9th overall in English football and representing 84% of capacity. However, their revenue per paying fan was, at £12.02, among the lower yields in the league. Overall, matchday revenue of £11.6 million was the fourth highest in the league. At the end of the season, the club embarked on a significant upgrade of the Stadium of Light including the introduction of a safe standing area, a new playing surface, new PA system and modernised the stadium floodlights. Broadcast Revenue For clubs not receiving Premier League parachute payments, broadcast revenue is made up of several components: a share of the Championship’s domestic TV deal (typically worth £3–4 million annually), appearance-based fees that can add £500,000 to £1.5 million depending on how often the club is televised, and a share of international broadcasting rights, which usually contributes an additional £1–2 million. On top of this, each club receives approximately £5 million in solidarity payments from the Premier League, designed to support clubs in the Championship and lower leagues. Altogether, these sources typically generate around £10 million annually for non-parachute clubs—consistent with Sunderland’s £10.4 million in broadcast income for the 2023/24 season. Commercial Revenue Sunderland’s commercial revenue—which includes income from sponsorships, retail, conferencing, stadium tours, and other business activities—rose by 9% to £16.1 million in 2023/24. The largest contributor was conferencing, banqueting, and catering, which brought in £8.7 million. Like many Premier League clubs, Sunderland partnered with the betting industry for their front-of-shirt sponsorship, securing a deal with SpreadEx for the 2023/24 season. They have since announced a new agreement with W88—a company that currently sponsors five Premier League clubs—for the upcoming campaign. However, this partnership will be short-lived, as front-of-shirt betting sponsorships will be banned in the Premier League from the end of the 2024/25 season. Sunderland's total commercial revenue of £16 million was the seventh highest in the league. Staff Costs Player wages rose from £25.6 million to £30.6 million, while amortisation—the gradual expense of transfer fees over the length of player contracts—increased from £2.7 million to £4 million. The relatively low amortisation figure highlights the modest spending on player transfers in recent seasons. Sunderland’s total staff costs of £34.6 million ranked 12th in the Championship. Finishing 16th highlights the underperformance of the team relative to their financial investment in the squad, however this has been reversed this season with their 4th place finish. Profit on Player Sales Sunderland generated £8.8 million in profit from player sales during the 2023/24 season, with the majority coming from Ross Stewart’s transfer to Southampton. Profit and Loss Under the ownership of Louis-Dreyfus and Sartori, Sunderland have reported relatively modest but consistent losses, typically ranging between £7 million and £11 million—slightly better than the Championship average. In 2023/24, a modest increase in turnover was outweighed by rising staff costs and other operating expenses. As a result, the club’s EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation) fell to -£10.7 million, down from -£4.7 million the previous year. EBITDA is a key indicator of operating performance and cash flow, and nearly all Championship clubs report negative figures—Watford and Norwich being the only exceptions in 2023/24. Due to limited player investment in recent years, Sunderland’s amortisation costs remain low—ranking 16th in the league. Meanwhile, the club recorded £8.8 million in profit from player sales, helping to keep the overall pre-tax loss to £8.6 million, slightly improved from the £8.9 million loss reported in 2022/23. Sunderland’s pre-tax loss of £8.6 million ranked as the eighth best result in the Championship. As illustrated below, only four clubs reported a profit, while the league collectively posted a £317 million loss. The table also underscores the critical role that player sales play in helping clubs achieve profitability. Player Trading During the 2023/24 season, Sunderland signed 14 players and saw 16 players depart. The club invested a total of £6.9 million on new signings, including Rusyn, Seelt, Mundle, Fuhr Hjelde, Bellingham, and Pembele. The acquisition of Jobe Bellingham proved particularly shrewd, as he was later sold to Borussia Dortmund for £26 million. On the outgoing side, player sales generated £8.9 million in revenue, with the majority coming from the transfer of Ross Stewart to Southampton. The Championship relies heavily on player sales to meet the league’s profitability requirements, functioning as a key development ground for talent. As a result, the league typically operates as a net seller of players. This dynamic is further influenced by clubs relegated from the Premier League, which often need to cut costs and may have relegation release clauses in player contracts. Reflecting this trend, the chart below highlights Leicester, Southampton, and Leeds as significant sellers. Sunderland’s £6.9 million investment in new players ranked 11th highest in the league. Football Net Debt Debt plays a significant role in financing Championship clubs. Collectively, the league’s total debt stands at £1.56 billion—equivalent to 163% of its turnover. Debt levels increased by £250 million during the 2023/24 season, largely due to changes in the club mix, with Leicester, Leeds, and Southampton all carrying substantial outstanding loans. Approximately 75% of the total debt consists of related-party loans. In comparison, Sunderland’s debt of £28 million is relatively modest, consisting of £19.8 million owed to the parent company and an £8.2 million overdraft. This places Sunderland’s debt as the 18th highest in the league. In addition, the club had £8.2 million in outstanding transfer fee obligations to other clubs. Cash Flow In the 2023/24 season, Sunderland recorded operating cash flows of -£9.6 million—meaning day-to-day expenses exceeded revenue. The club spent £7.5 million on player acquisitions and £3.5 million on facility improvements but generated £8.3 million from player sales. This resulted in net cash outflows from investing activities of £2.7 million. Overall, Sunderland faced a funding shortfall of £12.3 million, which was partly covered by a £1.8 million increase in loans from the parent company, with the remainder financed through cash reserves and an £8.2 million bank overdraft. No club in the Championship reported positive operating cash flow for the season. As shown below, total operating outflows across the league reached £422 million, with modest investment outflows of £36 million, collectively funded by £417 million in new financing and £41 million drawn from cash reserves. Matchday Finance's unique platform puts the power of analysis in your hands. Whether you're a fan, journalist, industry expert, or investor, all the key numbers are right at your fingertips.

sunderland-financial-results-2023-24

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