The city of Sunderland is bathed in red and white as supporters who saw their dreams of glory ripped apart three seasons ago dare to believe once again.

The Black Cats nose-dived into the Football League at the end of the 2002-03 campaign.

It was devastating for fans who had twice seen their side come within a touching distance of qualification for Europe - a remarkable achievement as Peter Reid fostered a team spirit and work ethic which worried the mightiest opponents for two memorable seasons.

Yet for all the memories of those heady days - derby victories at Newcastle, wins over Arsenal and Chelsea and a jam-packed Stadium of Light - there will also be a healthy sense of realism on Wearside next season.

The last time Sunderland won promotion to the Premiership, they did so with a record 105 points and were head and shoulders the best side in the division.

Key to their success was the striking partnership of Kevin Phillips and Niall Quinn, who scored 41 league goals between them that season and went on to plunder a further 44 in the top flight during the next. Phillips proved the deadliest marksman in the league with 30.

The strikers were aided and abetted by Thomas Sorensen and Gavin McCann who have since gone on to prove their ability elsewhere.

But what ultimately let Reid's squad down was that it did not have the depth to compete on a sustained basis, and 38 cup finals eventually proved beyond them.

Successive seventh-place finishes represented a remarkable return. But as expectation mounted the wheels came off, and good money was thrown after bad.

By the time Mick McCarthy took over in March 2003, Reid's successor Howard Wilkinson had come and gone - and it was a case of riding out the remaining waves of a spectacular decline.

He did so - he had no choice - by ditching big names and high earners and starting again.

McCarthy has built a squad capable of promotion on a pittance. Long gone are the multi-millionaires who once arrived at the Stadium of Light in the flash cars, their places taken by a breed of player either in need of a fresh start or given a chance to fulfil his potential on a bigger stage.

But is that enough to compete in the 2005-06 Premiership?

Only time will tell.

As last season's promoted sides attempt to stave off relegation, the indications are that the task is getting more difficult by the year.

Despite the welcome cash injection that promotion will hand the Black Cats - parachute payments for two years should they return at the first attempt to the Football League mean they should rake in at least £25m - will help to ease their financial troubles.

But the question for chairman Bob Murray to consider is whether or not he can afford to try to stay up by releasing the purse strings.

Murray will not sanction a wild spending spree - few Sunderland supporters will forget the £10m laid out in desperation to recruit Tore Andre Flo and Marcus Stewart - although investment will be required.

When fit McCarthy has two very capable goalkeepers in Mart Poom and Thomas Myhre; in Stephen Wright, Gary Breen, Steve Caldwell and George McCartney, he has a back four with Premiership experience.

Julio Arca is the class act at the club; Carl Robinson and Dean Whitehead have shone in midfield this season, while Liam Lawrence and Andy Welsh have demonstrated potential.

In attack, 32-year-old Stewart knows his career is drawing towards its conclusion and it remains to be seen if he has another Premiership year in him.

The burden is more likely to fall upon impressive Stephen Elliott, Scottish international Kevin Kyle - provided he is fit - Chris Brown and the injury-plagued Michael Bridges.

However, there is little doubt that McCarthy will need to strengthen his squad in both quality and numbers if the Black Cats are to make a fist of it.

It is perhaps in the striking department - Phillips is the name on the lips of the faithful - that he needs to do the most work.

Back in 1999, Reid's newcomers were tipped to struggle and did not; this time around, the same will be said and perhaps with greater justification.

But if Sunderland do find the top flight too much for them it will not be for the want of planning and trying to adapt to the greater demands