Sunderland's running costs are 'scary' and must be reduced, says Stewart Donald


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I agree with you, but slashing costs and re-evaluating ourselves in terms of league 2 clubs isn't knocking half the house down. It's lunacy. It's the same strategy that has seen us sink like a brick. We have a 48k stadium and a category 1 academy. The best means to getting out of league one isn't to sack all the staff, close them, and then play the same game as Shrewsbury. We need to take advantage of what we have, not bemoan it's existence.

You do realise we were bloated as a prem club as well? They’d have cut costs to get it running effeciently regardless of which league we are in. The big difference is how much we invest in the playing side, and thats a lot less in league 1 whilst still being competitive whilst planning ahead should we go up

Isn’t that exactly what the owners have said they’ll do?
 
The 2016/17 accounts show "other operating charges" of £32.3m (2016: £16.7m). These are overheads; they include no staff costs, playing or non-playing. The large number last year puzzled me a little; I reached the conclusion, in conjunction with looking at other numbers, that the costs of the Alvarez case were taken as an administrative expense. In view of the size, I'd have liked to have seen that disclosed as an exceptional item, but it hasn't been. This is the number which Donald has compared with the turnover of League 2 clubs. He did that not to give a target for us, but as a truly shocking comparison. Even after allowing for the Alvarez costs, the implication is that he's taken over a club in League 1 (which is not the same as a League 1 club) with an over head base of around £20m. Think on that.

What that says to me is that there has been a long term management culture where costs are signed off without questions being asked, and no effort has been made to seek out value for money. It's a ludicrous level of spend which is due some overdue attention.
 
The 2016/17 accounts show "other operating charges" of £32.3m (2016: £16.7m). These are overheads; they include no staff costs, playing or non-playing. The large number last year puzzled me a little; I reached the conclusion, in conjunction with looking at other numbers, that the costs of the Alvarez case were taken as an administrative expense. In view of the size, I'd have liked to have seen that disclosed as an exceptional item, but it hasn't been. This is the number which Donald has compared with the turnover of League 2 clubs. He did that not to give a target for us, but as a truly shocking comparison. Even after allowing for the Alvarez costs, the implication is that he's taken over a club in League 1 (which is not the same as a League 1 club) with an over head base of around £20m. Think on that.

What that says to me is that there has been a long term management culture where costs are signed off without questions being asked, and no effort has been made to seek out value for money. It's a ludicrous level of spend which is due some overdue attention.

Agree 100%. Sometimes that corporate culture applies to people inside the club as much as agents etc. Mind, paying a CEO 1.2m to scale down a cost base is also bizarre given the circumstances. I have a funny feeling that as Short began to check out around the time of Allardyce, they lost more or less all direction.
 
The 2016/17 accounts show "other operating charges" of £32.3m (2016: £16.7m). These are overheads; they include no staff costs, playing or non-playing. The large number last year puzzled me a little; I reached the conclusion, in conjunction with looking at other numbers, that the costs of the Alvarez case were taken as an administrative expense. In view of the size, I'd have liked to have seen that disclosed as an exceptional item, but it hasn't been. This is the number which Donald has compared with the turnover of League 2 clubs. He did that not to give a target for us, but as a truly shocking comparison. Even after allowing for the Alvarez costs, the implication is that he's taken over a club in League 1 (which is not the same as a League 1 club) with an over head base of around £20m. Think on that.

What that says to me is that there has been a long term management culture where costs are signed off without questions being asked, and no effort has been made to seek out value for money. It's a ludicrous level of spend which is due some overdue attention.
Completely agree-I think everyone has been living high on the hog with inflated salaries and empires at senior levels in the business. The sad thing is that some of the real workers in the club will lose their jobs as well as the overpaid mercenaries who have polluted SAFC. Donald is a businessman who realises he has to cut his cloth.
 
Please could you link me something? Could really do with some positive news

Most of the quotes/interviews linked on here, from the horses mouth, not conjecture.
They've stated we will have one of the best if not best transfer fund in the league.
They are going to focus on the academy and aggressively lure talent from lesser academies (not Cat1).
We have brought in a sought after manager who has bought into their vision, (he had other options remember).
They're binning bloated management and going to work hands on themselves rather than using the Bains of the world.
 
The 2016/17 accounts show "other operating charges" of £32.3m (2016: £16.7m). These are overheads; they include no staff costs, playing or non-playing. The large number last year puzzled me a little; I reached the conclusion, in conjunction with looking at other numbers, that the costs of the Alvarez case were taken as an administrative expense. In view of the size, I'd have liked to have seen that disclosed as an exceptional item, but it hasn't been. This is the number which Donald has compared with the turnover of League 2 clubs. He did that not to give a target for us, but as a truly shocking comparison. Even after allowing for the Alvarez costs, the implication is that he's taken over a club in League 1 (which is not the same as a League 1 club) with an over head base of around £20m. Think on that.

What that says to me is that there has been a long term management culture where costs are signed off without questions being asked, and no effort has been made to seek out value for money. It's a ludicrous level of spend which is due some overdue attention.

How does that £20m compare to other clubs?
 
IMHO, The Academy and due to the huge size of the SOL, for a league 1 club, the running costs, for utilities and maintenance, alone must be far more than any other team in our league. Sad, but that's the way the cookie crumbles!
 
The 2016/17 accounts show "other operating charges" of £32.3m (2016: £16.7m). These are overheads; they include no staff costs, playing or non-playing. The large number last year puzzled me a little; I reached the conclusion, in conjunction with looking at other numbers, that the costs of the Alvarez case were taken as an administrative expense. In view of the size, I'd have liked to have seen that disclosed as an exceptional item, but it hasn't been. This is the number which Donald has compared with the turnover of League 2 clubs. He did that not to give a target for us, but as a truly shocking comparison. Even after allowing for the Alvarez costs, the implication is that he's taken over a club in League 1 (which is not the same as a League 1 club) with an over head base of around £20m. Think on that.

What that says to me is that there has been a long term management culture where costs are signed off without questions being asked, and no effort has been made to seek out value for money. It's a ludicrous level of spend which is due some overdue attention.[/QUOTE]

Today's world of professional football summed up in one line.
 
All of this is based on before he started at the club

Hmmm, yes I know, but as due diligence was completed he will have been making plans for where costs could be trimmed. The books would have painted a clear financial picture of every thiing.

Unless he had ideas and plans in his mind even if unpopular.....he would not have bought, unless he believes he can turn all areas of concern around.

His only issue will be the speed he can complete the necessary required cost cutting proceedures. He may bleed money, but will sort it quickly he cannot afford not to.
 
Most of the quotes/interviews linked on here, from the horses mouth, not conjecture.
They've stated we will have one of the best if not best transfer fund in the league.
They are going to focus on the academy and aggressively lure talent from lesser academies (not Cat1).
We have brought in a sought after manager who has bought into their vision, (he had other options remember).
They're binning bloated management and going to work hands on themselves rather than using the Bains of the world.
You're misquoting him slightly as he never mentioned transfer funds. He said we'd have the biggest budget. The budget will include wages paid and our current wage bill is estimated to be 4 times as much as Sheff U's was when they were promoted from league one the season before last.
 
Whilst it’s of course very sad to see people lose their jobs it would not bother me one bit if some of those were from the board or senior management positions. We seem to have failed at all levels on and off the pitch and some of the ‘jobs’ some of these people seem to have done is quite frightening. They are making redundant roles on huge salaries which many of the fans didn’t even know existed.

This director of change however has at least helped Bain to change us to a League 1 club from Championship one. Here’s to a more streamlined, successful senior management structure anyway. Long may the cull - at this level - continue!
 
I've said this countless times now, but the club needs to be efficient, and try to be better than everyone else in all things - not just in buying players.
 
Donald took over the running costs bit with his own revenue and it was the stupidest thing he could have done.....He needs investment quickly as he also owes Ellis 25 mill still too or we’ll go under....Posters who don’t want another billionaire chairman might regret that because at least he could afford to cover the running costs of the Club and to reduce the debt it’s not as simple as reducing the wage bill.


So much for being negative....Realism!
 
Is there any form of breakdown showing what the 293 non-playing staff actually do?

Does it include Jack Rodwell (would account for a huge chunk of the cost)?
 
7th in the PL

Mcvities

Those were the days
Prefer Ringtons

I’m probably in the minority but I havent got the slightest interest in it and if it saves £600k then I’d bladder it tomorrow
Doesnt it impact on our Academy status? Also Donald and Methven have emphasised that they want a “club”. Perhaps they see the ladies team as part of that?
 
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Give me a little while. I'll try to pick a range, not just PL clubs.

Comparing us to other clubs proved problematic. There's no prescribed disclosure format, and some of them make it very hard to follow. My best informed guess is that the expenses are more or less in line for a PL club, and about double that of a largish Championship team (think Wolves, Leeds, the Sheffield clubs). It all backs up what Donald says about some people thinking we were still in the PL.
 
Most of the quotes/interviews linked on here, from the horses mouth, not conjecture.
They've stated we will have one of the best if not best transfer fund in the league.
They are going to focus on the academy and aggressively lure talent from lesser academies (not Cat1).
We have brought in a sought after manager who has bought into their vision, (he had other options remember).
They're binning bloated management and going to work hands on themselves rather than using the Bains of the world.
I like the sound of this. I always had the feeling that where huge sums of money were concerned like in the premier league certain people may have taken advantage of the owners largesse which allegedly happened under Bob Murrays watch too. To a much lesser extent of course. Good luck to the new owners they will have their work cut out.
 
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