Everyone is blaming DiCanio for the disastrous start to the season but exactly what are the expectations of Ellis Short? Bear in mind he made his fortune by âinvesting globally in distressed assetsâ. In other words, buying companies in financial trouble, selling off the prized assets, eventually turning the company around, and making it profitable before selling it on for a profit. Is this what is happening at Sunderland? Club distressed? Yes. Even the last accounts showed a £32m loss. http://www.theguardian.com/football/2013/apr/18/premier-league-finances-club-by-clubSUNDERLAND Accounts for the year to 31 July 2012 Ownership: Owned by the American Ellis Short via Drumaville, a company registered in Jersey Turnover: 11th in league, £78m (down from £79m in 2011) Gate receipts: £14m TV and media: £47m Sponsorship and royalties: £9m Conference and commercial: £8m Wage bill: 8th, £64m (up from £61m In 2011) Wages as proportion of turnover: 82% Loss before tax: £32m (increased from £8m in 2011) Net debt: £84m Interest payable: £2m Highest-paid director: Niall Quinn, £2,432,702 (includes £2m compensation for resigning) State they're in: Already making losses on this scale and with the owner, Ellis Short, having loaned in £41m, could not countenance the threat of relegation, hence the sacking of Martin O'Neill. Short's experience has similarities to that of his fellow American billionaire Randy Lerner: buying a big old club in the most lucrative league in the world, then finding it costing him millions to pay players' wages. The urgent focus on ensuring Sunderland did not endure the shock of relegation perhaps led Short to ask too few questions about the baggage Paolo Di Canio brings with him. Now we are selling off the prized assets in Mignolet & Sessegnon to generate cash and reduce the ridiculously high wage bill. Work it out! Even with a 30 man squad that averages out at £41k per week per player! (Although Iâve not included all of the backroom staff in this calculation, but you can see where Iâm coming from.) Now, if we get relegated we stand to lose about £60m. However, how much would it cost to buy, perhaps, 3 top class players to avoid relegation? (A Goalkeeper, Centre Back & Forward, in my opinion). £60m plus wages? We all know that there are parachute payments (£16m for the first 2 years) and that all player contracts have relegation clauses built into them reducing the wage bill again. Therefore, the losses of £60m are reduced again. With these figures will Short invest to avoid relegation? Is 17th his only ambition for the club? Hence, hiring inexperienced managers like DiCanio. Is this perceived lack of ambition the reason both Bruce and OâNeill shone brightly then crashed and burned so spectacularly? I still believe that to get the finances of the club under control spending the bare minimum to avoid relegation is his only ambition. However, relegation will be acceptable to Ellis Short as long as he gets the clubs finances under control and, possibly sold for a profit. For Short to sell the club the investment made must have improved the club and leave us in a much stronger financial position going forward. The Italian contingent and their ideas do seem to be the way forward for clubs like Sunderland so the future is bright but when the fans will see this is anyoneâs guess. Will DiCanio be replaced? No idea. Will Sunderland be relegated? Possibly. As an armchair fan only Iâll sit well back and let the fireworks begin! By the way, sadly, look at Newcastles accounts and see what a good job Mike Ashley is actually doing. And remember, they were relegated not too long ago!
Ellis Short and the whole premier league chairmen signed an agreement to not increase the clubs new influx of cash by more than 4m. This is a percentage of turnover to stop every penny of the new deal going the players, which quite rightly has to be reigned in, HOWEVER, Sunderland seem to be the only club out of twenty who have pulled the plug on big deals. In a season where huge money is around we had a great chance to buy 4/5....9/10m players and still break even, instead we have scratched around for bargains that may/may not do us somegood in season 2017/2018.