Financial report warns Sunderland amid ‘yo-yo’ trend and PSR risks with 11 clubs close to points deduction

Newly-promoted Sunderland may be riding a wave of momentum heading into their Premier League return, but a sobering new report from Deloitte highlights just how high the stakes will be, both competitively and financially.

Here, we take a look at the report and what it tells us about Sunderland, their Premier League rivals and the football landscape as a whole:

‘Yo-yo’ warning looms for newly-promoted sides

Sunderland are back in the top flight after an eight-year absence, but Deloitte's Annual Review of Football Finance 2025 draws attention to a growing and concerning trend: immediate relegation for promoted sides. In each of the past two seasons, all three clubs who came up from the Championship went straight back down, a phenomenon Deloitte warns could continue without meaningful structural change in the league.

“These seasons underscore the challenge newly promoted clubs face in establishing themselves and avoiding relegation. The financial implications of the ‘yo-yo effect’ are significant,” the report adds. Last season alone, clubs like Luton Town experienced a surge of over £100million in revenue after reaching the Premier League, only to drop back into the second tier just one year later, then the third tier 12 months after that.

11 Premier League clubs at risk of PSR breaches

Compounding the challenge is a growing financial strain across the top flight. According to Deloitte, as many as 11 Premier League clubs are reportedly at risk of breaching Profit and Sustainability Rules (PSR), potentially facing financial penalties or even points deductions.

While Sunderland are definitely not thought to be among those clubs as things stand, the warning is stark. It follows high-profile sanctions handed down to Everton and Nottingham Forest last season and underscores how regulatory pressure is mounting across the division. “Up to 11 Premier League clubs are reportedly at risk of breaching PSR, potentially putting them at risk of financial penalties or sporting sanctions such as points deductions,” Deloitte warns.

Record income, but spending outpacing growth

Despite Premier League clubs generating a record £6.1billion in revenue during the 2022-23 campaign, Deloitte's report reveals a deeper issue: combined pre-tax losses still hit £685million, with spending rising even faster than income.

The Echo has launched a new WhatsApp SAFC Channel to bring the latest news, analysis and team & injury updates direct to your phone. Simply click this link to join our SAFC WhatsApp channel.

“Record revenue hasn’t translated to profit,” the report states. “Instead, clubs are increasingly reliant on transfer income and at greater risk of breaching financial rules.” PSR, which caps losses at £105million over a rolling three-year period, has become central to the financial strategy of every top-flight club — especially those outside the traditional “big six”.

Sunderland’s place in a shifting financial landscape

For Sunderland, the message is clear: spend smart or suffer the consequences. The club returns to the Premier League without the advantage of parachute payments or legacy commercial revenue. Instead, under the guidance of Kristjaan Speakman, Sunderland have built a development-led model aimed at sustainability.

That strategy is now being tested against the realities of top-flight football, rising wages, tougher competition, and tighter regulatory oversight. The Deloitte report notes that the total Premier League wage bill has surpassed £4.2billion, and in extreme cases, such as Aston Villa, wage-to-revenue ratios have hit 97%, breaching UEFA thresholds. Even ambitious clubs are feeling the strain.

Championship inequality remains a cautionary tale

Sunderland’s own recent experience in the Championship makes Deloitte’s wider warning resonate even more. The second tier remains financially unsustainable, with combined club losses exceeding £400million last season.

A staggering 80% of those losses came from clubs not receiving parachute payments, underlining a growing disparity between relegated Premier League sides and the rest of the division. “The current system creates a structurally unfair playing field,” Deloitte states. “Clubs without parachute payments are now forced to spend well beyond their means to compete.”

Sunderland’s transfer strategy vital for survival

As PSR pressures grow, Deloitte identifies player sales as a crucial mechanism for clubs to stay compliant. That’s something Sunderland fans will understand well, following the recent departures of Jobe Bellingham and Tommy Watson and the likes of Ross Stewart and Jack Clarke before them – moves that were clearly strategic as well as sporting. While the Black Cats have shown a clear desire to avoid wholesale exits, they may need to remain flexible when it comes to balancing the books. Long-term survival in the Premier League could depend on it.

Within that transfer strategy, though, clubs are increasingly restructuring deals to ease the immediate financial burden, which we have seen at Sunderland, most recently with Jobe. According to Deloitte, only 38% of Premier League transfers were fully paid up-front last season, with a significant shift towards add-ons, sell-ons, and deferred payment schedules.

Amortisation charges – where transfer fees are spread across the length of a player’s contract – reached a staggering £1.3 billion, a 27% year-on-year increase. That surge has been driven by high-profile, multi-year megadeals for players like Enzo Fernández, Moisés Caicedo, Alexander Isak, and Sandro Tonali. Some of the top Premier League clubs, including Manchester United, Chelsea, and Arsenal, now carry some of the highest amortised values in world football – another sign of the delicate balance between ambition and financial responsibility in today’s game.

Your next Sunderland read: James Copley: The transfer link Sunderland fans didn’t want – and what Kristjaan Speakman may do next