Sunderland could stand to gain close to £200million from just one season in the Premier League…
Sunderland may earn an eye-watering £198 million in just one season in the Premier League if they win promotion under Régis Le Bris.
That’s according to leading football finance expert Kieran Maguire, who has broken down the potential financial rewards for the Black Cats if they return to the top flight.
With Sunderland having qualified for the Championship play-off final, Maguire indicated that promotion will result in a massive flood of revenue, ranging from broadcast rights and commercial partnerships to higher matchday revenues. Kyril Louis-Dreyfus and Juan Sartori, the club’s owners, face enormous financial consequences. Even a single season at the top might greatly increase the club’s riches, whether they stay there or not.
“If we take a look at Sunderland’s broadcast revenue, if we start off there, they’re probably getting around about £8.5million to £9million from the EFL and the solidarity payments from the Premier League,” Maguire told the Echo. Sheffield United finished bottom of the Premier League last season and received £109 million. If Sunderland are promoted, that figure will most likely have increased by next season.
“So I assume it will be about £111 million or £112 million. So that’s great news for the club, and on top of that, you get solidarity money. In the worst-case situation, Sunderland will most likely lose an additional £80 million.
“That’s £190 million in terms of financial benefit. When we look at the various kinds of income, your commercial contract, front of shirt agreement, which in the Championship, if Sunderland is receiving £500k at the moment, is good.
“You may add zeroes to that and more. You’re probably looking at between £7 million and £8 million for the front of the shirt, with match day serving as your third source of income. You’ll be able to charge more for games, but I don’t think the club will go so far as to drastically raise rates for regular spectators, but you’ll be allowed to charge premium fees for commercial and hospitality clients.
“If you’ve got Liverpool, Manchester United, City, Arsenal, Chelsea coming to town because people want to be able to entertain their guests and no disrespect, it’s a lot easier to sell those tickets if it’s clubs of that caliber compared to Swansea at home on a Tuesday night.”
Maguire talks about £20million equity conversion
Maguire also recently hypothesized that Louis-Dreyfus and Sartori may be attempting to mimic Tony Bloom’s strategy at Brighton by postponing a £20 million stock conversion.
Sunderland’s most recent set of records revealed that the club’s debt to its holding company Mercator, which Kyril Louis-Dreyfus and Juan Sartori control, had risen to just shy of £20 million.
Though Sunderland is not paying any interest on the debt, the club’s owners continue to declare that it will be converted to equity at some point, implying that the club faces no financial issues as a result of this primarily internal debt.
Though Sunderland’s owners have stated for several years that the equity conversion will take place, the club has provided no explanation for the continued delay, which has been noted by supporters and football finance specialists alike and has raised some concerns.
“The reason why the loans from Mercator haven’t been converted into equity just yet could be due to some form of private arrangement between Louis-Dreyfus and Juan Sartori.” Maguire theorized once the club’s accounts were made public.
He went on to say, “They might have chosen who’s going to contribute the most, and what would happen if Sunderland were promoted this season or another. So, there are a number of reasons why debt is not turned into equity.
“It could be tax planning or long-term financial planning. It’s possible that they’ll take a similar strategy to Tony Bloom of Brighton, who placed £400 million in loans and indicated he’d only take it out if the team became profitable in the Premier League, as it did in recent seasons. If it is not the case, the money is not withdrawn.”
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