Martin Bain has said that the £30 million made through the sale of Jordan Pickford ot Everton will not be made available in its entirety to Simon Grayson, but stressed that Ellis Short would continue to fund the club.
Short pulled the plug on takeover talks earlier this week amid fears that the interested parties would not be able to invest significantly in the club.
Sunderland then moved quickly to appoint Simon Grayson, who said he would have a 'realistic' budget.
Bain admitted that the financial impact of relegation would present a challenge but played down talk of a 'perilous' situation.
He said: "We may not have the biggest transfer budget in the Championship but it won't be the smallest. We made a big sale recently in Jordan. Does that all go to the transfer kitty? Well, no. You take a drop in revenue of roughly 58 per cent TV money but we still have legacy payments on previous transfers so it all goes into the mix.
"It's not, as some people have called it, a perilous situation, we have an owner who supports the club and TV money but we're going to have to juggle and at times it will be difficult.
"He [Short] has owned the club, he has a commitment to the club, he funds it and many clubs would be envious of an owner like Ellis Short. Bear that in mind when there’s speculation about the ownership.''