Sunderland have blamed their efforts to get into the Premiership and attempt to stay in the top-flight as the main reason behind a loss of £8.8m.
The figures for the year ended 31 July show a pre-tax loss which has increased by £7.6m from the previous period.
Chairman Bob Murray said: "Since promotion, all available resources have been directed to team strengthening.
"Additional funds have been made available by lengthening the repayment periods for our two bank loans."
The club still has net debts of £40m and Murray added: "We have looked to maximise our available resources by the use of the loan system and the acquisition of free agents.
"Transfer activity can no longer be measured by transfer fee expenditure alone, but the investment in wages for all players, including free agents and loan players, as well as loan fees and agency fees."
Turnover fell 11% to £25.5m, although the club's net assets stand at £51.6m after the Stadium of Light and its surroundings were revalued at £85m.
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Match of the Day - Post-match interviews