SUNDERLAND manager Mick McCarthy last night bemoaned the transfer market meltdown which has cost his club millions.

Midfielder Gavin McCann this week joined Aston Villa in a £2.25m deal, roughly half the valuation Sunderland would have placed on him two years ago.

Goalkeeper Thomas Sorensen yesterday confirmed he is poised to follow suit after Sunderland entered talks with Villa over a possible £3m deal as the big clear-out begins to gather momentum on Wearside.

It is understood Sunderland rated Danish international Sorensen at £8m as recently as the end of last season.

Again, however, they will be lucky to receive 50 per cent of that amount as the transfer slump drives prices down.

With the Black Cats almost £30m in debt in the wake of relegation, McCarthy is constrained to cash in on his prize assets.

Striker Kevin Phillips, who has attracted interest from Middlesbrough and Rangers among others, is also expected to move before the transfer window closes at the end of next month.

Once more, Sunderland will have to settle for a fraction of the £10m they were asking for Phillips when the market was at its most buoyant.

McCarthy admitted that the reluctance of clubs to avail themselves of the rich pickings on offer at the Stadium of Light, has also resulted in him missing out on targets he had identified as replacements.

"My timing has not been the best,'' quipped McCarthy.

"Had it been two years ago you would have said all these players were worth millions in the transfer market and they would have gone quicker and I would have been able to get players in.

"There were a number of players I was talking to but they have gone elsewhere and that makes it difficult. It has been frustrating and I'm pleased that the process of selling has finally started.

"But I have mixed feelings about losing players like Gavin McCann, who is Premiership quality. I think he will do a great job for Villa.

"It's more than likely that Thomas and Kevin will have gone as well by the start of the season.

"If they're still here then, they're under contract and they can't go anywhere so they'll be in contention for a place.

"But I'm planning ahead without them.'' A Sunderland spokeswoman confirmed that negotiations with Villa and Sorensen's representatives are underway.

"The club has been in discussions with Aston Villa about the transfer of Thomas Sorensen and we met with his agent, Paul Stretford, who is now going to talk to Villa.

"There is goodwill on both sides to conclude the transfer.''

Sorensen admitted: ''I would like to play for Aston Villa. They are one of the big clubs in the Premier League but they have not fulfilled their potential in recent years.

''They have a very talented squad and a good manager. I know Sunderland and Villa are negotiating a deal for me. My agent will also have a meeting with Sunderland, so things should finally happen.''

Villa boss David O'Leary said: ''I've made no secret of that fact that I think we can improve the goalkeeping department but we just have to wait and see.

''Gavin McCann was the player I first had in mind when I came in and I've been trying to get him for a while. I think he's a good, competitive midfield player with a lot of energy. I think, for that sort of money, it's just a fantastic investment for Aston Villa - for many years to come.''

McCarthy knows he will have to rely heavily on youth in the new season, with much expected of the likes of Sean Thornton, Ben Clark and Chris Black.

However, McCarthy stressed: "The young players are the basis and the fabric of the club, but they're not going to make us a championship-winning team - we're going to have to get one or two people in.

"But when Manchester United got their best crop of youngsters with Giggs, Beckham, Butt, Scholes and the Neville brothers, it gave them a lift and took them forward. I'm not suggesting we've got a crop like that, but we've got good, young players who I'm pleased with.''

One of them is 18-year-old left-back Craig James, who today faces Hibernian at Easter Road where he was on loan last season.

"He did very well there,'' said McCarthy.

"They would have liked to have had him again, but I've been pleased with him and he's got lots of ability.''

Scotland striker Kevin Kyle has been given the all-clear to take his place in the squad for the first of three games north of the border - McCarthy's men also tackle Hearts on Wednesday and Kilmarnock a week today.

Kyle picked up a knee injury, but a scan revealed no serious damage. Kevin Kilbane is also back in the squad after injury.

Meanwhile, Sorensen is surprisingly one of seven first-team players named in the squad for today's reserve friendly at Durham City (3.00). The involvement of Michael Gray, Tore Andre Flo, Julio Arca, Nicolas Medina, Phil Babb and Thomas Butler is a further indicator of which players are surplus.

* Sheffield Wednesday striker Shefki Kuqi claims Sunderland are among the clubs hoping to sign him. The Finnish international, also linked with Ipswich, said: "There has been contact with teams, but everything is still open. Sunderland will lose some of their players and are looking for replacements.''

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