Sunderland’s Chief Business Officer has been discussing the club’s financial position

David Bruce says Sunderland have a 'lot of working space' within the Championship's financial rules.

The Black Cats last month released their latest set of accounts, covering the 2024/25 season - their second back in the second tier. The accounts showed an operating loss of £8.1 million, down slightly from the previous year. The accounts included the sale of Ross Stewart to Southampton but not Jack Clarke's move to Ipswich Town last August. Sunderland's position for the next set of accounts covering the campaign will be strengthened by the recent sale of Tommy Watson to Brighton & Hove Albion.

The Championship's financial rules (PSR) limit losses over a three year period but Chief Business Officer Bruce told a recent meeting of the Sunderland Supporter Collective that the club were well placed.

Bruce also explained the club's recent decision to take on external debt at the meeting, which featured representatives from the Branch Liaison Council, the Red & White Army and the Senior Supporters' Association. A charge was recently registered at Companies House, confirming a loan arrangement with a company called Akira B.V. Akira B.V is linked to the holding company of the Louis Dreyfus Company, and the majority shareholder is Margarita Louis-Dreyfus. As a result of the transaction, Akira B.V now holds a charge over the club’s Academy of Light facility and associated land near the training base.

It essentially means that the club's ownership group are lending from the Louis-Dreyfus Company, having cleared a previous overdraft facility. Bruce said it was a sign of Kyril Louis Dreyfus's commitment to the club. He also reiterated the ownership's intention to convert the internal debt, which stood at £19,820,000 in the lats set of accounts, into equity.

What the Sunderland supporter collective meeting minutes say about the club's financial situation in full

The minutes read: "The Sunderland AFC 2023-24 accounts have been published recently; all revenue streams are up and the Club has the highest revenue of all Clubs not in receipt of parachute payments. Costs are up mainly due to increases in player wages, as the team transitions from a League One Club to an established Championship one. (David Bruce) The accounts reflect the first year of the player trading model and include the sale of Ross Stewart. Modern football is built on trading, especially in the Championship. The sales of players have not significantly impacted the quality or output of the team, with replacements stepping in to deliver. (DB)

DB confirmed the line of credit included in the accounts was opened to ensure cashflow was maintained, this is not unusual in football finance. The owner has removed this external line of credit now by providing his own. The stadium is valued at £158 million.

It is important that Sunderland AFC is financially stable. The Club has a lot of working space regarding PSR, the EFL’s financial control regulations. IH [Red & White Army] commented on the positive direction of travel demonstrated in the accounts and that PSR remains strong, and sought clarification of the club’s losses of £9.7 million. DB is comfortable with them, but the Club is looking to reduce losses, and, although not included in these accounts, is confident that the merchandise move to Hummel will reflect a contribution increase in the next ones.

IH noted a recent charge notice on Company’s House. DB confirmed this is a line of credit extended to the Club by the Louis -Dreyfus family and demonstrated KLD’s continued commitment to the Club. The owners have invested £20 million in the Club, which will be converted into equity."

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