SUNDERLAND have recorded a deficit for the first time since becoming a public company - making a loss of £2.8 million.

The figure for the financial year ended on July 31, 2002 represents a significant drop from the £3million profit recorded the previous year.

Turnover also fell from £46million to £43.8million with operating losses, excluding profits from player trading, of £7.2million.

This was put down largely to the poor performance of the team in the Premiership and subsequent decline in gates, increasing player wages and player trading.

Plc chairman Bryan Sanderson believes this will soon be turned around and said in his statement: ''We are confident that the new team of Howard Wilkinson and Steve Cotterill brings the combination of track record, experience and energy which is needed both to improve significantly upon our current league position and position Sunderland well for a future near the top of the Premiership.

''There is a strong squad of players to work with and they have the full support of all the directors and everyone at the club.''