Sunderland still heavily in the red
Sunderland have halted their desperate slide into the financial mire but will still end the season with debts in excess of £30m (€44m).
The Black Cats have released their interim results for the six months ending January 31.
They reveal that, despite the radical restructuring of the club after their relegation from the Premiership, the net debt still stands at £33.2m (€49.2m) and is expected to be little different to the £36.1m (€53.5m) they reported on July 31 2003 by year-end.
Turnover fell by a massive 46% from £26.4m (€39.1m) to £14.4m (€21.3m), a reflection of a 33% fall in average attendances from 39,390 to 26,296 which saw gate receipts drop from £7.5m (€11.1m) to £5m (€7.4m).
Income from television and other media was down 56% from £12.2m (€18m) to £5.3m (€7.8m), but operating expenses, excluding player amortisation and player sales resulted in a profit of £3.7m (€5.4m) - were reduced by 48% to £13.8m (€20.4m) from £26.3m (€39m).
The wages-to-turnover ratio fell from 70% to 59%, still well in excess of the 50% level recommended.
Overall, the club made an operating loss of £1.5m (€2.2m), although profit before tax stood at £1.4m (€2m) as a result of player disposals.
However, plc chairman Bryan Sanderson believes the massive strides the club have taken to slash expenditure and manage its debts, coupled with relative success on the field, has paved the way for future stability.
"It is pleasing to note our improved playing fortunes, including an exciting FA Cup run and an opportunity of promotion at the first attempt," said Mr Sanderson.
"There is a renewed determination and spirit within the dressing room and everyone at the club is fully committed to regaining our Premiership status as soon as possible.
"It is nevertheless essential for the long-term success and stability of the club that we put in place the flexibility to 'variabilise' as much of our cost base as possible.
"Shorter playing contracts, performance-related pay and salaries which respond to divisional status are all important in managing the uncertainties in our industry.
"These are necessary responses to the harsh realities of the football business for all but a tiny few privileged clubs."
The run to the semi-finals of the FA Cup brought in a profit of £2m (€2.9m) but Sanderson warned promotion to the Premiership would have a significant impact on debts because of the bonuses they would have to pay out.
