Clubs debt rises to 136million

Our debt rose to £136.5million last year.
The Whites’ parent company, Burnden Leisure, revealed a loss of £22.1m in the year up to June 30, 2012, in their financial figures announced today.

The club owe £125m of that total debt to owner Eddie Davies’s company, Moonshift Investments Ltd.

The annual report says the debt to MIL has been converted to a long-term one “underlining the on-going support from owner Eddie Davies”.

Other key elements of the report are that turnover for the year was down from £67.7m to £64.9m, the £22.1m loss for the year was down from £26.1m the previous year, and that attendances at Premier League matches were up by three per cent.

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Doesn't make for pretty reading.

You always get bigger crowds in the Premiership plus the away following at the Reebok is bigger as well. It's easy to see why the Premiership is the 'be all and end all' were money is concerned.

I'm quite looking forward to supporting FC Bolton.

My understanding was that income from the premiership/SKY alone was approaching that figure although it's difficult to tell with all the figures that are bandied about.

I don't even read this bollocks anymore. The debt cound be £500m and it wouldn't make any difference to any of us.

If they can still shell out compensation for an unproven manager then things can't be too bad.

There's been no material changes in the financial structure of the club during the period the accounts reflect - crowds were up 1,000-/+ (immaterial) and from the calibre of players that came in and out I'd guess the wage bill won't have changed considerably. So it's not surprising that the loss is similar to that of the previous year.

What's most interesting (worrying) is how it will look in 12 months. The wage bill has been halved supposedly (approx £20m cut in expenditure?) but income thanks to PL status represented the majority of turnover (£65m). There are the parachute payments, but from my understanding, the club only sees £12m of that in the first 12 months.

And the debt with Moonshine has now been converted into a Long Term Debt meaning that they have to give certain years notice to get their money back - think its 10 years!



So we are definitely solvent for the foreseeable!

What I like about Eddie Davies is that he rarely, if ever, courts publicity. Some owners use football clubs as their own personal plaything whereas Davies seems happier behind the scenes.

This makes interesting reading. Look who the majority shareholder is at West Ham.

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LOL, £136 million! Shit club run by idiots.

Bolton Hater wrote:LOL, £136 million! Shit club run by idiots.

You would know all about shit. You are full of it.

Hey BH how much do the Venky's own for buying you tinpot of a club?



Heard the rumours that they are moving to a new stadium, in Darlington?

MK Dons part II: Darlo Rovers

Well, it would be a shame to let that new stadium vacated by the now defunct Darlington F.C. go to waste!

And lets face it BH, Ewood Park isn't getting any younger! Although, it fits nicely in the town of Blackburn.... #shithole

Lt. Boon wrote:MK Dons part II: Darlo Rovers

Well, it would be a shame to let that new stadium vacated by the now defunct Darlington F.C. go to waste!

And lets face it BH, Ewood Park isn't getting any younger! Although, it fits nicely in the town of Blackburn.... #shithole

Just not with the Venky's image of the club of up and coming and vibrant for younger fans - hence Darlington!

You people are very dim. We are in a much better financial position than Bolton, even the biggest Bolton fan has to acknowledge that. That's why you have to get injured reserves from Norwich and we spend £8m on a superstar.

There is a rumour that they will be known as the "Darlington Darlings". Any truth to this, BH?

Bolton Hater wrote:That's why you have to get injured reserves from Norwich and we spend £8m on a superstar.

That's news to me. When's this superstar coming to Rovers then? And who is it?

Amazed if you can get a superstar for £8million - I mean you paid that much for that overrated 2nd Division striker wotshecalled, so it would be good business if you could actually get some quality for that kind of money.

Bolton Hater wrote:You people are very dim. We are in a much better financial position than Bolton, even the biggest Bolton fan has to acknowledge that. That's why you have to get injured reserves from Norwich and we spend £8m on a superstar.

Dont know if anyone told you but i dont think you got beckham or ronaldinho like it was promised. Sorry to break the news to you pal. But hey ho!

Instead of beckham you got murphy.

Instead of ronaldinho you got rhodes

£136 million in debt - wow!

Beggars financial belief really.

I can't understand the financially logic of running a business losing £20 odd million a year - each and every year - even in football this must be unsustainable.

I don't believe for one second that Eddie Davies and those others behind Moonshift are philanthropically simply throwing their money into the club out of the goodness of their hearts - there must be some way they are getting it back or it's not their money and the owner of it isn't too fussed if they ever see it back - something being laundered perhaps - or is that too far fetched?

Knowing the extent of the huge debt surely most question yet again why no action was taken to sack Coyle well before his cluelessness relegated us and cut us off from the Sky multi-millons for simply being in the Premier League?

It's clear now that Davies no longer owns the club - he may do in name only - but the debt is greater than his personal wealth, so I doubt very much that he calls all the shots alone now - others must hold sway now.

All seems somewhat dodgy to me.

The good thing I guess is that perversely we are less liable to go bust because nobody in their right minds would be investing in a business losing £20 million a year - so the fact that someone is suggests to me that they are not fussed at all about getting their money back anytime soon - nor I guess does it matter much to them which division we play in (if they are not in it for the money they aren't going to be too fussed if we don't get back in to the Premier - and Sky money).

Anyway that's my opinion on things.

I'd say that you'll have to be promoted in at least 3 seasons for the debt to be sustained (stating the obvious) or you'll have to go down the route of many clubs including Burnley.
That means looking more to the youth set up or buying younger players from lower leagues that hopefully have a good resale value.

We lost £4 million last financial year and that was with parachute payments and outgoing player transfers. It would probably have been near to £20 million but for that.