Relegation hits Bolton’s finances
RELEGATION hit Bolton Wanderers’ financial performance last year and left the club with a loss of £50.7m, up from £22.1m.
Figures released by Wanderers for its parent company, Burnden Leisure, show net debt grew 20% to £163.8m in the year to June, its first full year in the Championship after being relegated from the Premiership in 2012.
Turnover shrank to £28.5m from £55.3m during the period, due to the loss of broadcasting revenue after relegation, while attendances for home matches were down 24%, taking gate receipts down to £3.8m from £5.7m.
In a statement on the club’s website chairman Phil Gartside said: “This year’s results show the difficulties faced in the football business when a club has enjoyed a sustained and successful period in the Premier League, in our case 11 years, then suffers relegation back to the Football League Championship.”
He added: “The ever widening gap between the two leagues makes the transition extremely difficult, even with the benefits of parachute payments from the Premier League.”
Total staff costs for the year were £37.4m, down from £55.3m, as a result of a number of players leaving the club as well as relegation clauses in a number of players’ contracts.
Sponsorship and advertising revenue reduced from £4.3m to £1.4m, a 68% fall, while revenues from corporate activity also dropped year-on-year to £1.1m. Net debt rose from £136.5m but most of this is owed to owner Eddie Davies, the Isle of Man-based businessman who cancelled interest payments in June.
Mr Gartside said: “It should go without saying that Eddie Davies continues to provide a humbling level of support to the club. However, the financial support given by owners is no longer possible in this league without severe penalty.
“We are responding to a changing environment by improvement and development of the wider Burnden Leisure business interests. This year we secured sole ownership of the hotel, expanded our education business and applied for planning permission to increase our non-football operations to improve revenues over the medium to long term.
“We will continue to invest, both in the long and short term, where the returns can be justified. However, Financial Fair Play rules require an alternative funding structure and Bolton Wanderers is very much moving towards a self-sustainable future.
“Looking forward we have to recognise we are no longer a Premier League club in the Championship, but a Championship club with ambitions to play in the Premier League; a stark reality of the financial rules now imposed.”
