STEWART DONALD admits he is having to deal with around £10m of “unexpected liabilities”, but the Sunderland owner remains hopeful he can avoid the need for an external loan as he continues to wrestle with the Black Cats’ finances.

Donald agreed to pay former owner Ellis Short £40m when he completed his buyout at the Stadium of Light, with the money due to be paid in a series of instalments.

Short agreed to a staggered payment schedule to enable Donald to meet around £25m of transfer liabilities that are due this summer, with Sunderland still owing money on a number of deals that were completed long before the change of ownership on Wearside.

Donald had factored those payments into his takeover plan, and made a point of using his introductory press conference to stress the importance of the Black Cats remaining debt-free. Short paid off around £130m of external debt when he agreed to sell up at the end of last season, and Donald was determined to ensure the club began to live within its means.

That remains his ambition, but the financial picture has been clouded by the emergence of pre-existing legal disputes that could yet saddle Sunderland’s new owners with a hefty bill.

The exact nature of those ongoing legal claims has not been disclosed, but it is thought they could relate to the controversial purchase of Ricky Alvarez from Inter Milan, which Sunderland disputed throughout a series of appeals and court hearings.

Donald is hoping a further round of talks will reduce Sunderland’s potential liabilities, but is unable to rule out the need for external finance if things do not go as he hopes. In that scenario, a bank loan putting debt onto the balance sheet would be required.

“As is common knowledge, the club has a huge cash-flow requirement in the next couple of months,” said Donald. “But in addition to this, there is around £10m in potential liabilities that have emerged, mainly around legal disputes, that were not expected, but some of these hopefully may not materialise.

“We are discussing these currently and hope to get them resolved without the need for external finance. Subject to sensible dialogue with the relevant people, we are very hopeful any loan arrangement is a precautionary back-up position and indeed will not actually be required.

“The likely outcome is that the current and previous owners will settle these liabilities between them, resulting in no external finance being taken. We will keep the fans updated and, in the next few weeks, will be able to confirm either way the outcome of these conservations and its financial implications.”

Whatever happens in those talks, Donald remains confident he will be able to back Jack Ross in the transfer market this summer, having previously promised “an extremely competitive budget” in League One.

Three prospective signings have held talks at Sunderland’s Academy of Light training ground this week, with strikers Lyle Taylor and Chris Maguire, and midfielder Dylan McGeouch, all currently pondering the offer of a move to the North-East.

Taylor is due to become a free agent at the end of the month, and is understood to have turned down the offer of a new deal with AFC Wimbledon. He has been offered the chance of a move to Wearside, although Charlton Athletic and Bristol Rovers have made competing offers in an attempt to land the 28-year-old, who scored 14 league goals last season.

Maguire is expected to leave Bury this summer after the Shakers were relegated to League Two. The 29-year-old, who can also play in midfield, joined Bury from Oxford United 12 months ago, having started his career in Scotland with Aberdeen.

McGeouch currently plays north of the border with Hibernian, but is another player who is set to become a free agent at the end of the month.

The Scotland international, who won his first call-up to Alex McLeish’s squad earlier this year, is one of Ross’ leading summer targets, and Sunderland are understood to have made him an attractive offer in an attempt to lure him to League One.

However, Aberdeen have offered him the opportunity to remain in the Scottish Premier League, while Championship Blackburn have also held talks with McGeouch and his representatives.