Latics boosted by £48m debt for equity deal
PREMIER League football club Wigan Athletic has reported strong financial results for the year to the end of May 2012, with turnover and profits up, but costs falling.
Wigan, owned by entrepreneur Dave Whelan, is one of the smaller clubs in the Premier League and finished last season in 15th place, comfortably avoiding relegation from the top flight.
In results posted on the club website, Wigan said it had posted a net profit of £4.3m in the year – its first net profit for six years. Debts were slashed from more than £70m to £20m as Mr Whelan converted £48m debt to equity.
EBITDA (earnings before interest, tax, depreciation and amortisation of players) was £8.9m compared with £4.9m in the previous year. Turnover increased to £52.6m compared to £50.5m the year before.
Bucking an upward trend among many clubs, Wigan’s salary costs fell to £37.7m from £39.9m.
During the year the Club invested £10.4m on new players whilst profit from the sale of players increased to £7.9m from £2.3m in the previous year primarily due to the sale of Charles N’Zogbia to Aston Villa.
Net debt at the year-end including bank borrowings and loans from Chairman David Whelan and his family reduced significantly to £20.5m compared with £72.2m in the previous year.
Chief executive Jonathan Jackson said: “The results are once again encouraging and we are very pleased to report a net profit position in a very competitive environment.
“By increasing turnover and controlling costs the club is continuing to progress to a break even operating position which all football clubs are aspiring to but many are finding it difficult to achieve.
“We continue to maintain our position in the Barclays Premier League by significant investment in the playing squad to strengthen our position on the field in our eighth year in the top division.
“The conversion of £48m of debt to equity has significantly strengthened the club’s financial position and has, to a very significant extent, written off the debt owed to Mr Whelan.”
