Sunderland facing financial crisis

Losses at Sunderland have risensharply after "one of the most disappointing" seasons in theclub's history left it heading for…

Losses at Sunderland have risensharply after "one of the most disappointing" seasons in theclub's history left it heading for relegation from the premierleague.

The club's chief executive Hugh Roberts will resign at theend of the season, Sunderland PLC, the company that runs thebottom-placed side, said on Wednesday.

Operating losses rose to £4.8 million Stgin the six months to end of January from 0.2 million in thecorresponding period last season and wages ate up 70 percent ofturnover compared with 46 percent.

This was partly due to the costs associated with thedismissal of Peter Reid in October, but the costs of sacking hissuccessor Howard Wilkinson in March are not included.

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"The 2002/2003 season has been one of the most disappointingin our recent history," the company said in a statement to theLondon Stock Exchange.

"Everyone connected with the club will feel the pain shouldwe relinquish our premiership position, as seems increasinglylikely...." Sunderland have just 19 points from 32 games withsix matches left in the 20-team league.

"Painful restructuring will be needed on both the playingand non-playing side of the business," the company said.

"It was important to recognise the mistake with our previousappointment (of Wilkinson) and take decisive action with theearly appointment of a renowned manager to give us the bestchance for success in the coming seasons."

Wilkinson was succeeded by former Ireland manager MickMcCarthy who has been unable to turn round Sunderland's abjectform.

The club said full year losses would be "significantlyhigher" than the six-month figures. Operating expenses soared 26percent in the first six months to £26.3 million Stg, caused entirelyby wage cost increases.