The end of the 1903/04 season saw the promotion of Arsenal to the first division of the Football League, the first southern side to gain such status. Little did the football world know that in time The Gunners would become one of the most successful sides in the country. Other teams in the second division at that time were Burslem Port Vale, Burton United, Glossop and Gainsborough Trinity.

The season would see Sunderland end 6th, disappointing, but it was all down to a pretty poor away record. We lost 10 of 17 games on our travels. Interestingly enough to put the season into perspective we acquired only 2 points less than in the previous season, but ended 3 places lower. The annual meeting took place on 21 July and reported income was up on the previous 12 months. This was in spite of the Middlesbrough game taking place at St James Park.

Once more there was dismay at our early exit in the English Cup, the trophy now becoming an obsession, but the "A" team had won the Durham Senior Cup for the 3rd year running. Attendances were once more on the rise, with the aggregate of 271,345 comparing favourably with the previous campaign of 268,689. A profit of £664 was reported, the revenue account in the balance sheet showing revenue of some £8,974 of which £6,919 related to home league games.

The season started at home to Notts County, and with a tough match in prospect, county always provided a stern test, it was surprising that the Lads triumphed 4 v 1, Bridgett, outside right Craggs, Robinson and Hogg doing the damage. Things got even better, when Villa visited Wearside and ended up on the wrong end of a 6 v 1 hiding. The Midlanders had drawn midweek with Newcastle United.

12 September and Sunderland visited Middlesbrough’s "magnificent new ground" Ayresome Park for the first time and came away with a hard fought 3 v 2 success.  No fewer than 25,000 filled the impressive arena.The match had been preceded by an official opening ceremony with the guest of honour being Mr Clifton Robinson, managing director of the Imperial Tramways Company. The Middlesbrough chairman, a Mr Robinson unlocked the players’ gate.

19 September and the home fixture with Liverpool saw goalkeeper Doig as a notable absentee, having sprained his wrist in training during the week. Lindsay took his place. Gemmell scored a brace in the 2 v 1 triumph.

Our first reverse of the season came at Gigg Lane where Bury surprisingly beat us 1 v 3. We then had a sticky patch where we won only 1 game out of the next 5, and lost top spot. The 10 October Nottingham Forest 0 v 3 defeat had been in no small part due to the international call up of Hogg. He was a vital cog in the Sunderland wheel. Sheffield Wednesday arrived on Wearside as League champions 17 October and despatched us 0 v 1. By now the "A" team was in full swing and were once again providing tough opposition. The latest team to taste defeat at their hands was the Middlesbrough outfit Grangetown.

3 consecutive victories during November brought us right back in with the leading pack before we travelled to The Baseball Ground on the 28th of the month. We were hammered 2 v 7, having been 0 v 7 down until the final few minutes. Craggs and Barrie giving us some face. Barrie had replaced McAllister in the Sunderland side at centre half, although by the end of the season the latter would be restored. It wouldn’t last long and he would eventually become captain of Oldham Athletic.

There then followed a mixed bag of results, victories, defeats, draws, nothing special, but a notable hiding was dished out to Bury 6 v 0, ample revenge for our first reverse of the season at Gigg Lane. The Magpies had also been defeated at St James Park. Sunderlands 20th FA cup campaign got underway at Maine Road, and with expectation high we crashed 2 v 3. Once more our cup hoodoo had struck and it was getting more and more painful....

By now there was discontent within the Sunderland ranks. McCombie was unhappy with the financial terms he was on with the club and refused to travel to Manchester city, in fact he was not even in the party which trained at Seaton Carew prior to the game.

3 defeats in 4 league games during March and April put paid to any championship hopes and although we won our final 2 games of the season, against Nottingham Forest and Sheffield United it was too little too late. A barren season had ended. During the season Gemmell, who was primarily a forward had featured twice at fullback and performed very well. It was mooted that Sunderland may well persevere with him in that position.

There were 2 interesting sets of friendly games to end the season. The first was a trip to Ireland where the red and whites took on Cliftonville, we dished out a 5 v 1 hammering, Derry Celtic who were despatched 3 v 1 and Distillery from Belfast who surprisingly inflicted a 1 v 3 defeat.

From 23 April until 27 April we played 3 games, defeating Newcastle United 3 v 0 at Roker Park, succumbing 3 v 4 to Bradford City at Valley Parade, and ending on a high with the 6 v 2 demolition of Leeds & district. It should be noted that Leeds United would not be formed until 1919. Things by now were ship shape for Sunderland. The team had a nice blend of youth and experience, but the players need for more money nearly smashed everything.

In the close season of 1903/04 Sunderland AFC gave McCombie £100 to enable him to start up in business. It was on the understanding that on receiving a benefit game he would repay the money. In time he refused to saying that the money had been a gift.

Everything came into the public arena in January 1904 and it resulted in a clamour for McCombie signature, his fallout with Sunderland complete. He eventually signed for Newcastle United; he could have gone anywhere, but his desire to stay in the north east swaying his decision. The Magpies paid a worlds record £700 for his signature. To put McCombie playing prowess into perspective, the next season, his first for the Magpies would result in black and white triumph league wise. McCombie was only 25 years of age and had the footballing world at his feet.

The football Association made an enquiry into the £100 "gift" and ordered Sunderland to take legal action against McCombie. However a court of law judged that the money constituted a loan. The FA took exception to this ruling and agreed with McCombie that it had been a "re-signing/win/draw bonus", violating the games rules. The books were deemed as not showing a true record of the clubs financial affairs. The upshot was that Sunderland AFC were fined £250, 6 directors were suspended for 2 and a half years, Alex Watson for 18 months and Alex Mackie 3 months.

This came as a blow to the club, and it was mooted that they may have to be wound up. JP Henderson vacated the chair to Sinclair Todd in the September although Fred Taylor who had first appeared on the board in 1896 stayed.

The annual report and meeting held at the Grand Hotel 22 July contained the £100 figure, specifically reported as a loan. At the meeting it was reported that after allowing for 5% depreciation Sunderland had made a financial gain of some £249 in the year. The match receipts were down on the previous season due in large part to our poor showing in the latter half of the season when interest had waned. The "A" team had won the Durham Senior Cup for the 4rth season running.

Attendances for the season aggregated at 256,170 compared with 271,345 for the previous campaign. The revenue account showed that receipts amounted to £8,443. Of the authorised capital of 5000 shares of £1 each, some 2,013 had been issued. Total liabilities amounted to £8,039 with assets at £8,339 including a £40 guarantee from Blackpool FC, presumably for gate receipts owing. This is a difficult one to translate as so far we had never played the Tangerines competitively.