Sunderland suffered back to back relegations at the hands of Burton Albion on Saturday, a result which will see them playing League One football next campaign.
After relegation from the Premier League last season, owner Ellis Short claimed that the financial position of the club needed to be improved drastically.
Short, speaking to the Sunderland Echo, said after Sunderland’s relegation to the second tier; “We acknowledge that our financial performance must improve significantly.”
However, Short hadn’t even comprehended the possibility of back to back relegations for the Black Cats, and the North East side may now find themselves in a perilous financial position.
Parachute payments from the Premier League have seen Sunderland receive around £40m this season.
This will drop to £33m next season, and after that £15m. The parachute payments will give Sunderland an advantage in the third tier, however it is unlikely that the money will be spent on the playing squad at the Stadium of Light.
The wage bill was dramatically reduced during their first season in the Championship. However, it is still around £35m and is up their with one of the highest in the League.
The playing squad that came down from the Premier League had a 40% wage cut, and the current squad’s wages will be slashed next term in order to keep the club afloat.
Sunderland still have big earners on their books, whom they will look to move on during the summer. Lee Cattermole and Lamine Kone will be on huge money at the Black Cats and they will have no choice to further reduce their wage bill as they enter League One.
John O’Shea, Marc Wilson, Billy Jones and Kazenga LuaLua are out of contract, and big earners in Fabio Borini and Jeremain Lens are leaving the club.
However, Chris Coleman will not have his wages cut if he remains in charge next season, as there was no such clause in his contract.
The aim for Sunderland will be instant promotion back to the Championship , and despite the financial fragility around the club, they will still have one of the biggest in the division.
