Stadium of Light boosts 'Black Cats'
Article Date: Mar 28 2001Football club Sunderland (SUA), the "Black Cats', has unveiled a 33 per cent increase in first half profits to £3.5 million, boosted by increased capacity at the Stadium of Light and higher media income. James Crux reports.
Sunderland's pre-tax profit rose by a third to £3.5 million, in the six months to January. Sales rose 25 per cent to £20.3 million, boosted by a 23 per cent uplift in gate receipts to £10 million.
The first half of the financial year benefits from an uninterrupted football season and three more home games> Another important driver of revenue was the new North and Northwest stand extension, which raised capacity at the Stadium of Light from 42,300 to 48,000.
Under the stewardship of the canny Peter Reid, Sunderland currently sits fourth in the Premier League and is pushing for a spot in Europe next season. Success on the pitch fed through into greater media exposure and opportunities.
The club enjoyed a 65 per cent increase in media income from £4.6 million to £7.6 million, with the coffers swelled by its share of the Premier League BSkyB contract and its individual commercial rights agreement with BSkyB.
Directors are unruffled by the implications of the recent agreement reached between the European Commission and FIFA/UEFA. The new rules will offer one transfer period in the close season and a 'limited mid-season window', as well as five year maximum contracts.
Although deputy chairman John Fickling describes the situation as a 'moveable feast' of players, he is confident that on the pitch success will keep players' loyalty. 'We will have to review contracts on a twelve month basis, but we do that already' he explains.
Supporters of the Black Cats will be relieved to know that all key players are tied to the club until at least 2003. Full year figures are likely to be affected by the close season lull, although this depends on whether or not the club sells any of its key players.
Always sceptical regarding football stocks, the City was unmoved by today's excellent figures and the share price remained unchanged at 422.5p. The 2001 high so far is 475p and the low 385p.
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