Two NW Championship clubs under EFL scrutiny over financial issues

Two North West football clubs at opposite ends of their respective league are in negotiations with the English Football League (EFL) over financial issues.

Burnley, which is the runaway leader of the Championship, has been placed under a transfer embargo by the EFL over the late submission of its financial accounts, while Wigan Athletic is under scrutiny after failing to pay wages.

The EFL has sanctioned Burnley over its late submission of its financial figures, but the club said the matter should be resolved swiftly and the embargo should be lifted in time for the summer transfer period.

A statement on the Burnley website said: “We would like to share with our supporters the disappointing news that the EFL are placing the club under an immediate transfer embargo.

“We believe transparency in these matters is paramount and we want to explain why this has happened.

“In our continued efforts to improve and move forward Burnley Football Club we made the decision to change our auditors in November and the transition has taken longer than we anticipated.

“We can confirm that we have provided draft accounts and financial information to the EFL’s Club Financial Reporting Unit and we continue to have regular dialogue with the unit to ensure we remain as open and as transparent and answer any questions the League may have.”

It added: “We believe the EFL will have no issue with the detail of our accounts other than their late submission and fully understand and support their position and efforts to sanction any club who fails to comply with any of their regulations.

“Both the club and our new auditors are confident this can be resolved swiftly and we hope our submission will be made next month at which point the embargo will be lifted.

“We once again wish to assure supporters this will have no detriment to the ongoing success and development of the club as we move forward.”

Burnley suffered relegation from the Premier League last season, but looks destined to bounce straight back, leading the promotion-chasing pack by 13 points.

Meanwhile, at the opposite end of the table where Wigan occupies the bottom berth, six points from safety, the club said it is working with the EFL after delays in paying wages, which it said was due to “liquidity issues”.

Problems emerged last week at the club, which recently reported an £8m pre-tax loss in its latest accounts.

In a statement, the club said: “Wigan Athletic can confirm that there has been a delay in meeting wage obligations.

“Whilst responding to media speculation is not typical of the club’s standard approach, we would like to assure stakeholders that this is a temporary matter which is promptly being resolved.

“The club has been disrupted by recent liquidity issues and this continues to be the case, hence the current situation. The club wants to emphasise that the financial strength of our ownership group remains robust and they are committed to supporting the club.

“The EFL is aware of the current situation and the club will continue to work closely with them to ensure that all outstanding wage amounts are paid. The club has already taken steps to rectify the situation and will ensure that wage payments are made promptly going forward.”

It added: “It is hoped that this statement does, at the very least, clarify the current funding situation, rather than question the financial strength of the club.

“Wigan Athletic understands the sensitivity of this matter and would like to thank staff, players and fans for their patience.”

Wigan said it will make no further comment, until it feels it necessary.

In March last year the club was rescued from the threat of administration after Middle East group, Phoenix 21, announced a takeover deal for the then League One side.

Chairman, Talal Mubarak Al Hammad, said at the time: “This is the start of a new chapter in the history of Wigan Athletic. We feel extremely proud and happy at Phoenix 2021 Limited, in having completed the acquisition.”

Bahrain-based Phoenix 2021 Limited, registered in Manchester, is owned by Gibraltar firm Europa Point Sports and comprises a board of Wigan’s finance director Richard Bramwell, Mal Brannigan, Oliver Gottman, Thomas Markham and chairman Talal Mubarak Al Hammad. Abdulrahman Aljasmi Ubo is listed as a ‘person with significant control’.