SUNDERLAND’S overall debt has fallen to £110m, but the club’s most recent set of accounts reveal they are operating with an annual wage bill worth a staggering £83.8m.

The full accounts for the year ending July 31, 2016 will be published shortly, but the club released an abridged version this evening that highlighted the extent of the problems that will accompany their likely relegation.

Sunderland’s annual turnover from August 2015 to July 2016, a period that saw them finish 17th in the Premier League, rose by £7m to £108m.

That delivered a small operating profit, but once trading costs and player amortisation (the loss in value of players over the course of their contract) were factored in, the Black Cats posted an after-tax loss of £33m.

The vast majority of their expenditure went on wages, resulting in a wages-to-turnover ratio of an alarming 77.6 per cent.

Their total wage bill is understood to be one of the tenth biggest in the Premier League, highlighting the extent of their failure as they find themselves at the foot of the table.

The club continues to be hugely reliant on the financial support of owner Ellis Short, and his interventions meant Sunderland’s net debt actually fell by £23m from £133.2m to £110.4m.

If Sunderland’s relegation is confirmed, their turnover will drop dramatically. While Premier League clubs are guaranteed to receive at least £100m from television money, that figure drops to around £25m in the Championship.

A first-season parachute payment of around £44m will help plug some of the gap, but Sunderland will clearly need to reduce their wage bill dramatically if they are to be financially viable in the second tier.

The club have already announced a series of off-field cuts, which could result in around 70 members of staff losing their jobs.

“We acknowledge that our financial performance must improve significantly,” said Short. “It is not something that can be fixed overnight, however we have taken the first steps towards making the positive changes necessary by restructuring the club at senior level, including the appointment of CEO Martin Bain last summer.

“Implementing these changes was done with the aim of giving us the best platform from which to proactively address the issues we face, both on and off the field, and that will be our focus moving forward.”