Sunderland football club said today it sank to a loss last financial year after cutting the valuation of some players and warned rising wage costs would hit future earnings.
Sunderland said it expects to report a pre-tax loss of up to £3 million sterling for the financial year that ended on July 31th, 2002. The new financial year also looks tough.
The Black Cats have invested over £16 million in recent weeks, including signing Tore Andre Flo from Chelsea and Marcus Stewart from Ipswich Town as extra options up front alongside Kevin Phillips and veteran Niall Quinn.
"The directors believe that, as a result of the investment outlined above, the company's results for the current financial year may be materially below market expectations," Sunderland said in a statement to the stock exchange.
Analysts had been expecting a profit of between £0.5 and £1 million for the year just ended; forecasts for the current year ranged from £0.7 million to £1.1 million.