Bolton Wanderers’ parent sees losses rise to £13m

THE parent company of Premier League football club Bolton Wanderers has seen losses rise from £8m to £13m, but says its finances are stable thanks to the support of owner Eddie Davies.

Allan Duckworth, chief executive of Burnden Leisure, which has debts of £64m, said the business was looking at options to refinance, with Mr Davies fully supportive for the long term.
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The accounts show that one of Isle of Man-based Mr Davies’ businesses, Moonshift Investments, has lent Burnden £23m, and funds the company’s day to day working capital requirements.

Mr Duckworth said a statement in Burnden’s annual accounts which refers to a possible funding shortfall was “not a matter of concern.”

He said Burnden was looking at a deal to securitise future guaranteed broadcast revenues and that progress on this and other new financing was expected soon.

“Overall we are more stable than we have been for some time. The accounts are not qualified in any way – we are fortunate that we have strong and stable owner behind us and we are looking at our options in that context.”

He said the recession was hitting income streams, but that the board was listening to fans and tailoring ticket pricing and corporate packages for help all customers weather the recession.

“I think after a tough couple of years, we are stable on and off the pitch We have a good playing squad and are confident for this season.”

Burnden Leisure, which as well as the football club owns the De Vere Whites Hotel – which is integrated into the Reebok Stadium – saw losses before tax rise from £8m to £13.2m in the year to June 30.

This followed investment on improving the playing squad, which finished in 13th place in the Premier League.

Football revenues rose from £50.4m in 2008 to £51.8m, but the hotel saw a 6% fall in occupancy levels and saw its revenues fall from £8.6m to £7.5m.

Chairman Phil Gartside focused on the impact of the recession on football and the gap between the biggest four clubs – Manchester United, Liverpool, Arsenal and Chelsea in his statement.

He said: “Last season proved to be very competitive throughout the Premier League. Whilst the top four continued to reign supreme, relatively little separated  teams challenging for Europa League Places from those fighting a battle against relegation.

“In many ways this makes the Premier League an exciting product for supporters and television viewers, but there is no doubt that as the years go by, and the same few clubs continue to benefit from the huge additional revenues from the Champions League, the remaining clubs find it enormously difficult to challenge.”

He said the gap between the Premier League and the Championship continues to widen as said he detects a ‘fear factor’ emerging amongst Premier League Clubs outside the top few.”

Mr Garside also said football clubs, including those in big cities, were being affected by the recession with individual and corporate spending under pressure.
He said smaller clubs would “feel the pinch” more than larger rivals – a statement born out by the 22% fall in corporate hospitality revenues to £1.8m.