Portsmouth's League One rivals Sunderland showing £20.5m hole in club accounts

According to the Daily Mail, Pompey’s League One rivals have an eight-figure shortfall in draft accounts for 2018-19, which has caused investors to be put off purchasing the club.

The report claims the £20.58m shortage is one of the Black Cats' parachute payments due following their relegation from the Premier League in 2017.

The sum has been reported to have been used to facilitate Stewart Donald’s £40m takeover from Ellis Short in 2018 via his holding company Madrox Partners.

It is claimed that Donald and fellow shareholders, Juan Sartori and Charlie Methven, have removed the legal obligation to pay back that money via an ‘exceptional operating expense’.

Although it doesn't breach rules, it would put off investors who would believe Donald & Co would stand to make a significant profit.

The Sunderland Echo says it was a problem when Mark Campbell’s consortium reached advanced stages of negotiations last summer.

Pompey recently posted a £2.05m profit in their most recent accounts, due to player sales and cup runs.

A Sunderland club statement read: ‘Madrox has continued to invest funds as required, (which will be reflected in next year's figures) and in a way to ensure the club remains debt free, as promised.

‘This has resulted in SAFC receiving around £11.5m since the year end, from Madrox. The funds are interest free and replace a significant portion of the parachute monies.

‘This takes the total Madrox investment to around £25m, to date. This investment, two years into their five year plan, is ahead of schedule.’

Sunderland are primed to spend a third season in League One next campaign, along with Pompey.

It’s reported that the third and fourth tier of the Football League will be ended next week, with a weighted points-per-game system the favoured model to decide on league positions.

If that is used then the Blues will finish seventh, one spot ahead of Sunderland.