Sunderland based schoolteacher James Allan founded the Sunderland District & Teachers Association Football Club on 17 October 1879.The name of the club was changed to Sunderland Association Football Club in 1881, after other professions were allowed to join. This increased the pool of players and improved the club's financial base.However, Allan grew dissatisfied with the changing attitude in the club towards professionalism.He left to found Sunderland Albion, and the two Sunderland clubs formed a rivalry that lasted until Albion's demise in 1892.
Sunderland did not join The Football League until the 1890–91 season. They replaced Stoke City, who had failed to be re-elected, becoming the first new club to join the league since its inauguration in 1888.During the late 19th century, they were declared the "Team of All Talents" by William McGregor,the founder of the league, after a 7–2 win against Aston Villa.Sunderland won the league championship in the 1891–92 season, one season after joining The Football League. The club's 42 points were five clear of nearest rivals Preston North End, and this performance led The Times to describe the players as "a wonderfully fine team".Sunderland successfully defended the title the following season, aided by centre forward Johnny Campbell, who broke the 30-goal mark for the second time in consecutive seasons. In the process, they became the first team to score 100 goals in a season, a feat not matched until 1919–20, when West Bromwich Albion set a new record.
Sunderland came close to winning a third successive league championship in the 1893–94 season, finishing second behind Aston Villa. However, they regained the title in the 1894–95 season, ending the season five points ahead of Everton. After winning the English League Championship, Sunderland played against Heart of Midlothian, the champions of the Scottish League, in a game described as the Championship of the World title match.Sunderland won the game 5–3 and were announced "Champions of the world".Sunderland came close to winning another league title in the 1897–98 season, when they finished as runners-up to Sheffield United.That season was their last at Newcastle Road, as they moved to Roker Park the following season.After coming second in 1900–01, the club won their fourth league title in the 1901–02 season, beating Everton by a three point margin.
In 1904, Sunderland's management was embroiled in a payment scandal involving player Andrew McCombie. The club was said to have given the player £100 (£8 thousand today) to help him start his own business, on the understanding that he would repay the money after his benefit game. However, McCombie refused to repay the money, claiming it had been a gift. An investigation conducted by the Football Association concluded that the money given to McCombie was part of a "re-signing/win/draw bonus", which violated the Association's rules. Sunderland were fined £250 (£20 thousand today), and six directors were suspended for two and a half years for not showing a true record of the club's financial dealings. Sunderland manager Alex Mackie was also suspended for three months for his involvement in the affair.
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