DEBT-laden Sunderland Football Club's life as a plc looked over last night after chairman Bob Murray announced plans to take the company private.

The club de-listed from the London Stock Exchange in August last year to save money after the team was relegated from the Barclays Premiership, causing the share price to plummet.

However, a trading facility was set up to allow shareholders to sell their stock.

Mr Murray used that to increase his stake to 42.39 per cent in January and has since bought back enough of the remaining shares to take the club private.

While the Black Cats will be back in the Premiership in August, the club still has outstanding debts of about £35m.

Will Maydon, assistant director of stockbroker Wise Speke, in Newcastle, said: "I think the club will be better-off in private hands. Bob Murray has the club's interests very close to his heart."

After de-listing from the main stock exchange, club bosses see going private as a natural step in its cost-cutting drive.

The club issued a statement that said: "Sunderland plc intends, subject to shareholders' approval being obtained, to implement a cancellation of the company's share premium account, to re-register as a private company and to amend its articles of association (a document describing the purpose, place of business, and details of an organisation).

"In the board's view, the proposed amendments to the constitution of the company are a natural progression from the de-listing of the company from the London Stock Exchange in August 2004."

Kitchen magnate Bob Murray floated the club in 1996 to pay for the Stadium of Light.

Attempts to ensure Premiership survival led to spending on players, which then led to mounting debts. They spiralled to £38m when the club was relegated in 2003, suffering a £10m loss in media revenue, which resulted in a 33 per cent fall in turnover.

Cost-cutting measures, such as halving the wage bill and laying-off nearly 100 staff, including 15 players, helped to reduce operating costs by more than £20m.

However, the share price collapsed to such an extent that in January, Mr Murray was able to buy back BSkyB's five per cent stake for only £125,000. The broadcaster had originally paid him more than £6m for the shares.

Under City rules, the purchase meant Mr Murray, who was born in Consett, County Durham, had to offer to buy out the rest of the shareholders, at a cost of only £1.5m.

Mr Maydon said: "With hindsight, it was not a great success as a plc and shareholders lost money."

* Plc stands for public limited company. A plc is a British company whose shares can be bought and sold by the public and whose debts are limited if it fails financially.