Post by Taxigirl on Nov 4, 2003 10:07:28 GMT
Flo cost a club-record £6.75m
Sunderland have announced pre-tax losses of £20.6m for the year ending 31 July 2003.
The club found themselves £36.1m in debt following their disastrous 2002-2003 season that saw them relegated from the Premiership.
Plc chairman Bryan Sanderson blamed poor performances on the field and some terrible decisions by management.
"Our relegation from the Premier League was not a surprise following the thoroughly inadequate performance on the field," he said in a statement.
"It was nevertheless a major blow for our shareholders and supporters and my first task is to apologise to them for a failure to deliver the prime objective of any football club - success on the field of play."
FINANCIAL SUMMARY
2002 figures in brackets
Turnover: £42.5m (£43.8m)
Operating loss: £6.2m (£4.6m)
Loss before tax: £20.6m (£2.8m)
Sanderson was heavily critical of the purchasers of former manager Peter Reid, whose outlay last summer failed to turn the club's fortunes around and he was sacked in October 2002.
Many of his signings proved extremely costly, with the likes of Tore Andre Flo arriving from Rangers for £6.75m and eventually leaving for less than £1m.
"The management of the team and of the acquisitions in the transfer market was unacceptable," Sanderson added.
"In particular a large part of the £18m squad purchases to try and save our Premiership status added little or no value."
The club went through a major rebuilding process in the summer that included cutting the playing staff almost in half and the remaining staff agreeing to defer part of their wages until August 2004.
And Sanderson believes they have finally turned the corner.
"The necessary cost reduction was achieved in all operating areas by a professional and highly motivated top executive team, which I cannot praise too highly," he added.
"It is not easy to accomplish a task where success is measured at least in part by staff reduction. To the 70 non-playing staff we were obliged to release go our regrets, and our thanks and good wishes for the future.
"On the playing side we took swift and decisive action to reduce the wage bill from £34m to a current projected £17m by reducing the size of the squad, focusing particularly on high cost players.
"We now believe we have the financial support, playing management and at the very least the nucleus of the squad needed to return quickly to Premiership football. We have far more upside than downside potential."
