£11m loss for Whelan’s Latics
WIGAN Athletic racked up an £11m loss during the 2007-08 season and expects further losses in the coming years.
The club, controlled by chairman Dave Whelan through Whelco Holdings, said turnover increased 59% to £42.8m mainly due to a new television rights deal and its stronger finish in the Premier League.
But pre-tax losses widened to £11.2m from £8.3m, partly down to an impairment fee of £1.3m on some players registration fees.
Net liabilities stood at £48.1m and the directors conceded the club will incur losses this year and next.
However, the club’s accountants prepared its figures for the year to May 31 on a going concern basis on the understanding that future losses will be met by funds and loans from Whelco.
During the year an unsecured, interest-free loan from Whelco, which has no fixed repayment date, grew by £5m to £35m.
Wigan’s accounts show it made a £7m profit on the transfer market but paid out £22.2m on new players and recruiting Steve Bruce as manager. And player wages rose £10.8m to £38.3m.
The size of the average home crowd rose 5% to 19,046, spurred by a cheaper season ticket which dented gate receipts by £700,000.
In the chairman’s report Mr Whelan spoke of the sacking of manager Chris Hutchings who was replaced by Steve Bruce.
He said: “Unfortunatley Chris and his team were not able to build on the good start and he left the club in early November.
“At that point we were a rudderless ship, sinking fast and in danger of drifting out of contention altogether. I knew I had to act fast and firmly which is why I agreed to pay a major compensation fee to bring Steve Bruce to the club.”
