North East Business Matthew Ord

Sunderland AFC's pre-tax losses have slipped to more than £25m after the club narrowly avoided relegation last season.

The Mackems finished 16th in the 2014/15 campaign, three points above the relegation zone. Dick Advocaat, who resigned as manager in October last year, guided the club to safety after replacing Gus Poyet seven months earlier.

For the year to 31 July 2015, Sunderland Association Football Club Ltd reported turnover of £97m, compared with £101m the year before. Pre-tax losses widened from £16.3m to £25.6m.

Gate receipt income was down from £14.6m to £10.8m during the year, while money from TV and media also dropped from £71.8m to £69.1m.

However, sponsorship and royalty payments were up from £8.40m to £10.2m, with retail and merchandising income also increasing from £16,000 to £965,000.

Wages and salaries for the club, including players and match day staff, rose from £59.5m to £66.2m.

Writing in a strategic report accompanying the results, chairman Ellis Short said continued investment in the squad ensured the Black Cats retained their Premier League status, with the likes of Jack Rodwell, Patrick van Aanholt and Jermain Defoe all joining during the season.

Short added that reduced turnover and increased interest costs contributed to the widening losses.

Sunderland, who are now managed by Sam Allardyce, currently find themselves in the relegation zone of the Premier League with three games to play and are battling for survival alongside Norwich City and Newcastle United.