Bolton Announce Record £50million Loss

  • December 31, 2013 | By Chris Mann
  • URL Short URL: http://b-ac.es/8faaf

Burnden Leisure Plc, the parent company of Bolton Wanderers, has announced a worrying £50million loss for the financial year ending June 30, 2013.

Download the full 2012/13 Burnden Leisure Plc Financial Results

The company reported a record loss of £50.7million, which they say was brought on by a number of one-off exceptional items payments - including paying off a number of individual players, as well as the £2.3million cost of sacking Owen Coyle and bringing Dougie Freedman to the club.

Without those one-off payments, the financial loss for 2012/13 stands at £34.5million. Regardless, the record loss sees the net debt of Burnden Leisure rise to £163.8million - of which £151.3million is owed to MIL (Moonshift Investment Ltd), Eddie Davies' parent company, and the remaining £12.5million is owed to Barclays Bank.

As of July 2013, interest on the £151.3million owed to MIL is being held at 0% interest.

Following relegation from the Premier League in May 2012, turnover was reduced from £58.5million to £28.5million - with the main reason being a drop in broadcasting revenue from BSkyB and their competing television companies.

Staffings costs were reduced from £55.3million to £37.4million, with player wages making up £32.7million of that total - it's lowest figure since 2007. In total, £4million was invested in the playing squad during the financial year.

Advertising revenue dropped 68%, from £4.3million to £1.4million, while revenues from corporate activity fell to £1.1million.

A 28% drop in attendances resulted in gate receipts falling from £5.7million to £3.8million, meaning general admission costs were reduced from £15.7million to £14.1million - a fall of 10%.

This marks the 7th consecutive year that Burnden Leisure have recorded a loss, with their last recorded profit coming back in 2002 - following their first season back in the Premier League.

Speaking about the club's record-setting loss, Bolton chairman Phil Gartside says the stark reality of the accounts should finally put everybody on notice that the club is no longer a Premier League outfit. What they are is a Championship club with aspirations of playing in the top-flight.

In a statement posted to the club's official website, 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.

"The ever widening gap between the two leagues makes the transition extremely difficult, even with the benefits of parachute payments from the Premier League.

"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."

Financial Year Net Debt
2013 £163.8M
2012 £136.5M
2011 £110.6M
2010 £93M
2009 £64M
2008 £54M
2007 £43M
2006 £29M
2005 £27M
Financial Year Wage Bill
2013 £32.7M
2012 £48.3M
2011 £49.7M
2010 £46.4M
2009 £40.9M
2008 £39M
2007 £30.7M
2006 £28.5M
2005 £25.4M
Financial Year Operating Profit
2013 -£34.5M
2012 -£22M
2011 -£26M
2010 -£31.5M
2009 -£17.2M
2008 -£13.2M
2007 -£5.5M
2006 £1.6M
2005 £5.2M

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15 Bolton Wanderers 26 32
16 Lincoln City 26 31
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