THE annual review of football finances by analysts Deloitte and Touche has painted a mixed picture for the North-East's sides.

Newcastle United was the second most profitable club across all four divisions, based on accounts for the season 2001/2002, recording a £14.8m operating profit.

Sunderland was also in the black at £4.6m, but both were a long way behind leaders Manchester United, which recorded £34m in operating profits.

Both Newcastle and Sunderland are among the ten most profitable clubs over the past ten years, although the report does not account for Sunderland's recent financial problems.

The report praises Sunderland's performance in making the top ten, despite not being ever-present in the Premiership, adding: "Their position deserves great acknowledgement and hopefully points to their ability to bounce back, despite their current difficulties arising from relegation at the end of the 2002/2003 season."

Middlesbrough was one of five Premiership clubs recording the biggest pre-tax losses for 2001/2002, at £16m, and it also disclosed an operating loss of £3.3m.

Spending on wages was roughly comparable between all three North-East sides, with Newcastle paying out £32.1m, Middlesbrough £30m and Sunderland £25.8m.

Deloitte and Touche said that outside the cash-rich Premiership, Nationwide clubs have been pushed into a financial crisis. But it offers some hope saying the vast majority of clubs will survive and are now through the worst.

It also points towards the key role supporters' trusts will play in rescuing clubs from trouble, as happened with York City, which avoided insolvency last season.

Accounts for a number of clubs were not available, said Deloitte and Touche, and figures for Darlington and Hartlepool Football Club were not included in the report.