Relegation-threatened Sunderland plan to make a significant number of staff redundant after the Premiership side announced losses of nearly £5 million sterling and debts of £26 million today.
The club at which former Republic of Ireland manager Mick McCarthy was appointed as manager recently revealed an operating loss of £4.8 million as turnover at the Stadium of Light fell by £400,000 pounds for the six months up to January 31st.
In that time Sunderland have slipped to the bottom of the Premiership table and face a seemingly impossible task to escape relegation.
Chairman Mr Bryan Sanderson admitted the loss in the interim figures will be "significantly higher" when final operating losses are released.
But he did not say who would be laid off. "Everybody is aware of the impact of under-performance in the Premiership and we have had to take a long hard look at our position and take some tough decisions," he said.
"It is with very great regret therefore that we are announcing a significant number of proposed redundancies." Mr Sanderson blamed some of the losses on the slump in the transfer market, with Sunderland making only £100,000 from sales this time around compared to £5 million in the same period last year.
Wednesday's figures - which were released to the Stock Exchange - include a pay-off to former manager Peter Reid, who was sacked early this season.
Howard Wilkinson was drafted in as his replacement but Sanderson admits that appointment was a "mistake". The pay-offs for Wilkinson and assistant Steve Cotterill following their sackings were not included in Wednesday's results.
AFP