After four days of reflection, Short decided Bruce had to go late on Tuesday night as the American feared the effect of falling attendances. Sunderland have won just twice this season, in sharp contrast to bitter local rivals Newcastle United, who are flying high in fourth. Despite finishing in the top 10 for only the third time in more than 50 years last season, Bruce's side have won only three games at the Stadium of Light this year.
O'Neill has previously pushed all the right buttons on Wearside, reminiscing about his childhood in Northern Ireland listening to Sunderland games on the radio as a supporter. That is in stark contrast to Bruce, a Geordie who made no secret of his affection for Newcastle when he was growing up. O'Neill also has an outstanding CV and is desperate to get back into management after quitting Aston Villa in August last year.
One thing that may work against O'Neill is the amount of money he will want to rebuild the side. Short has had to cover losses of more than £25 million in each of the last two years and had not planned to spend much, if anything, in January.
Hughes, on the other hand, has done well with limited resources at both Blackburn and Fulham and is happy to work with the players he would inherit. He regards Sunderland as a bigger club than Fulham and believes success would give him greater funds in the long run.
Short said: "This has been a difficult time for everyone at Sunderland and is not a situation that any of us envisaged or expected to be in.
"It is my job as chairman to act in the best interests of our football club at all times and I can assure everyone that this is not a decision that I have taken lightly. Sadly, results this season have simply not been good enough and I feel the time is right to make a change.
"Steve has acted with honesty and integrity throughout, which is testament to the character and commitment he has shown during his time at Sunderland.
"I would like to personally place on record my thanks to him for his significant contribution to our football club over the past two and a half years and everyone here at Sunderland naturally wishes him the very best for the future.
"I would also like to thank our fans, who have endured a trying start to the season. Their support continues to be the driving force behind our club and is vital as we now look to the future."
Bruce, who only signed a new 3½-year contract in February, is believed to have been shocked by the decision as he felt he was going to be given another two games at least. His mood at the training ground was far more buoyant than it had been at the start of the week and the players were surprised to learn that a manager who retained the full support of the dressing room had been sacked.
The former Manchester United captain, who is expected to fly to Portugal for a short holiday, can at least console himself with a multi-million pound pay-off.
