Sunderland incur heavy losses

Crisis-hit Sunderland lost nearly £5m (€7.2m) in the six months ending January 31.

And according to their results, released through the Stock Exchange this morning, final operating losses will be “significantly higher” than the interim figures.

And chairman Bryan Sanderson warns that “everyone at the club will feel the pain should we relinquish our Premiership position as seems increasingly likely”.

In a statement Sanderson said: “The 2002/03 season has been one of the most disappointing in our recent history. Painful restructuring will be needed on both the playing and non-playing side of the business but we are determined to take tough decisions.”

He added: "Much has happened during a season that has seen three managers in charge. It was important to recognise the mistake of our previous appointment and take decisive action with the early appointment of a renowned manager [Mick McCarthy] to give us the best chance of success in the coming seasons.''

The chairman claims losses are partly down to the failure to reduce the club’s wage bill.

The losses include the settlement with Peter Reid but not pay-offs to Howard Wilkinson and Steve Cotterill.

Sanderson went on: "We have entrusted the future of our footballing first team to Mick McCarthy, who is a well-respected and successful figure in the game and is currently assessing the squad and formulating his plans for next season.

“Major player squad restructuring is essential for the survival of the business and work has already begun in this area.”

Sunderland's chief executive and plc director Hugh Roberts has resigned.