Ellis Short was forced to sack Chris Coleman and clear Sunderland's debts of around £140million before selling the club.

On a dramatic day at the Stadium of Light, news of Coleman's departure came just 15 minutes before confirmation of a takeover led by Stewart Donald, the chairman of National League club Eastleigh.

However, sources have indicated to Sportsmail that the deal would not have gone through had the manager and the debt remained in place, leaving Short with no choice but to pay up Coleman's two-year contract and forgo £70m owed to him by the club as well as settling bank loans last recorded at £70m.

Sunderland announced on Sunday they have released Chris Coleman from his contract

The Welsh manager leaves the club after failing to keep them in the Championship

The American billionaire has been so desperate to end his nine-year tenure that he agreed to take the financial hit, finally ridding himself of the burden of funding losses of around £500,000 per week.

Donald, 43, and his group of foreign investors will now appoint their own manager with former Sunderland boss Mick McCarthy, ex-Oxford United coach Michael Appleton and Sheffield United's Chris Wilder among those under consideration.

But Coleman's exit has been mourned by the players, despite their relegation to League One. Sportsmail understands the squad's WhatsApp group reacted with shock and sadness to his sacking and they had hoped he would remain in charge next season.

The 47-year-old was informed on Sunday morning that his five months on Wearside were over. As recently as Thursday he spoke of his desire to rebuild the club, preferably under new owners.

Coleman's wife Charlotte expressed her disappointment on Twitter after the announcement

It marks a sad end to his brief tenure. He was able to win only five of 28 league matches but had won over both players and supporters with his honesty and enthusiasm.

COLEMAN'S RECORD AS SUNDERLAND BOSS Matches: 28 Won: 5 Drew: 8 Lost: 15 Advertisement

He stood down as manager of Wales in November to take over at Sunderland — news broken by Sportsmail — but failed to save the club from a second successive relegation.

The future of chief executive Martin Bain is also now in doubt and it could well be that his last act was to facilitate the takeover, which remains subject to EFL approval.

Short said: 'It is no secret that I have been trying to sell Sunderland.

'But I have waited until the right group came along that have experience, finances and a plan to take this great club back to where it deserves to be.

'Overall, my chairmanship has not gone the way I would have wished. The many high points of a decade in the Premier League have been overshadowed by the low points of the last two terrible seasons.

Friday's 2-1 defeat by Fulham at Craven Cottage proved to be Coleman's last game in charge

'I was therefore determined that I leave Sunderland in the best possible hands and in the best possible state to turn the corner.

'To achieve this, higher offers from less qualified buyers were rejected, and I have paid off all debts owed by the club to leave it financially strong and debt-free for the first time since years before I owned it.'

Donald, who will step down as chairman of Eastleigh, added: 'All of us involved in this bid believe that Sunderland represents an extraordinary opportunity.

'For a club with one of the best fanbases, stadium and academies in the UK to find itself in League One is unacceptable.

'We have a carefully thought-through plan to restructure the club, make it sustainable and, with the help of the fans, to restore its sense of pride and reconnect it with the local community.'