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Club debt rises to £163.8 million!!!

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1Club debt rises to £163.8 million!!! Empty Club debt rises to £163.8 million!!! on Tue Dec 31 2013, 09:43

Triumph


Tony Kelly
Tony Kelly
Bolton Wanderers' debt reaches record levels

FINANCIAL reality continues to bite at [You must be registered and logged in to see this link.] after the club revealed they were a record £163.8million in the red this morning.
Parent company Burnden Leisure Plc reported losses of £50.7m, which see debts rise massively from last year’s £136.5m.
Turnover was down by £30m from £58.5m to £28.5m, while total staff costs for the year were £37.4m, down from £55.3m. The wage bill, currently standing at£32.7m is at its lowest level since 2007.
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."
The chart below shows how Wanderers' debt has risen since 2005.
 
[You must be registered and logged in to see this image.]
This chart shows how Wanderers' wage bill has been curbed in the last 12 months.

2Club debt rises to £163.8 million!!! Empty Club debt rises to £168.8 million!!! on Tue Dec 31 2013, 09:44

Sluffy

Sluffy
Admin
Burnden Leisure Plc has released its figures for the financial year ending June 2013.

The year saw a group financial loss of £50.7million. Excluding a number of one-off exceptional items relating to balance sheet impairments and other accounting adjustments this figure stands at £34.5million.

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."

Turnover was recorded at £28.5million, in comparison to the previous season's figure of £58.5million, primarily due to the reduction in broadcasting revenue following relegation from the Premier League.

The Chairman 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 £37.4million, down from £55.3million, as a result of a number of players leaving the club as well as the evoking of relegation clauses in a number of players' contracts and making significant changes in overheads.

Attendances at home matches decreased by 24%, while ticket prices for the 2012/13 season were again frozen and the club once again made use of the interest-free direct debit scheme.

Gate receipts were £3.8million, as compared to £5.7million last year.

In difficult economic conditions, sponsorship and advertising revenue reduced from £4.3million to £1.4million, a 68% fall, while revenues from corporate activity also dropped year on year to £1.1million.

General administration costs reduced by 10% to £14.1million from £15.7million.

Net debt is now recorded as £163.8million, of which £151.3million is owed to MIL.

As part of Eddie Davies' on-going support, effective from July 2013 interest owed to MIL was reduced to a 0% rate.

Both Burnden Leisure's education business and the Bolton Whites Hotel continue to make positive strides, whilst planning approval for the Middlebrook Masterplan development is expected early next year.

Gartside concluded: "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."


To view the full report and accounts CLICK HERE

Read more at [You must be registered and logged in to see this link.]

3Club debt rises to £163.8 million!!! Empty Re: Club debt rises to £163.8 million!!! on Tue Dec 31 2013, 09:54

Norpig

Norpig
Nat Lofthouse
Nat Lofthouse
is that why there is a black background today? This all makes for uncomfortable reading, surely this new development will mean even more debt or am i being thick?

Even getting back to the Premiership (no laughing at the back) wouldn't get rid of this debt, we really are in the shit.

4Club debt rises to £163.8 million!!! Empty Re: Club debt rises to £163.8 million!!! on Tue Dec 31 2013, 10:13

Reebok Trotter

Reebok Trotter
Nat Lofthouse
Nat Lofthouse
As part of Eddie Davies' on-going support, effective from July 2013 interest owed to MIL was reduced to a 0% rate.

How refreshing to read of such generosity.

5Club debt rises to £163.8 million!!! Empty Re: Club debt rises to £163.8 million!!! on Tue Dec 31 2013, 10:16

Sluffy

Sluffy
Admin
Got to go out soon so can't really comment much except to say don't believe all you read.

Simply use common sense.

The debt is nearly TWICE as mich as the owners entire wealth - would any sane man risk their (and their family's financial future) on Gartside, Megson, Coyle, etc?

Would you still (or any other business in the world) employ Gartside for leading us to over a £100 millon loss in his time as chairman UNLESS he was rtnning the business as you wanted it to be run (for whatever reason that may be)?

The debt now is not being paid an interest - so in theory the owners of the money are making a bigger loss (if they had just kept their money in a bank they would be getting a rate of interest return on it) so why are they still ploughing in even MORE money to keep the club solvent? It's not as though we are going to be making any money anytime soon.

The £170 million as to have come from somewhere unless Eddie found it down the back of his sofa, so someone or another is happy enough to give huge sums of money with seemingly little care if they ever got it back. Is this really how people invest legal funds?

Something at the club is clearly not right financially in my opinion.

6Club debt rises to £163.8 million!!! Empty Re: Club debt rises to £163.8 million!!! on Tue Dec 31 2013, 10:17

Culcheth_White

Culcheth_White
Andy Walker
Andy Walker
We made massive losses when we were in the Premier League and we continue to have massive losses whilst being in the Championship. It's all very grim reading.

I see the Leicester City owner has just wiped out, all of the clubs debts, it's a pity this can't be done by Eddie, but he's not worth around 1 billion, like the Leicester owner.

[You must be registered and logged in to see this link.]

7Club debt rises to £163.8 million!!! Empty Re: Club debt rises to £163.8 million!!! on Tue Dec 31 2013, 10:36

Jack Russell

Jack Russell
David Lee
David Lee
This figure beggars belief !! 130 million in debt was a crisis.
How can a football club 18th in the Championship survive this debt ? very dark days ahead.

 Sad

8Club debt rises to £163.8 million!!! Empty Re: Club debt rises to £163.8 million!!! on Tue Dec 31 2013, 11:00

doffcocker

doffcocker
Ivan Campo
Ivan Campo
A £33m wage bill is awful for this level.

59 players employed, a fraction of which will have featured in the first team, each pocketing an average £11,000 a week. 

"...will be staying at the club on reduced wages."

Ha ha, it's a classic that one.

Still, where the other £45m went is a tricky one.

We can only hope there's more to it than what meets the eye.

9Club debt rises to £163.8 million!!! Empty Re: Club debt rises to £163.8 million!!! on Tue Dec 31 2013, 11:03

Copper Dragon

Copper Dragon
Ivan Campo
Ivan Campo
'Turnover was down by £30m from £58.5m to £28.5m, while total staff costs for the year were £37.4m'


Just to give you some kind of comparison.......


Our total staff costs were £15,369,000 for the year June 2012 to June 2013..

10Club debt rises to £163.8 million!!! Empty Re: Club debt rises to £163.8 million!!! on Tue Dec 31 2013, 11:06

Triumph


Tony Kelly
Tony Kelly
We need an Oil Barron because we just can't survive at this rate.

11Club debt rises to £163.8 million!!! Empty Re: Club debt rises to £163.8 million!!! on Tue Dec 31 2013, 11:06

Reebok Trotter

Reebok Trotter
Nat Lofthouse
Nat Lofthouse
[You must be registered and logged in to see this link.] wrote:'Turnover was down by £30m from £58.5m to £28.5m, while total staff costs for the year were £37.4m'


Just to give you some kind of comparison.......


Our total staff costs were £15,369,000 for the year June 2012 to June 2013..


Our staff costs were more than double that of Burnley. I thought the club were supposed to have made massive cutbacks in staff running costs?

12Club debt rises to £163.8 million!!! Empty Re: Club debt rises to £163.8 million!!! on Tue Dec 31 2013, 11:11

Copper Dragon

Copper Dragon
Ivan Campo
Ivan Campo
It does take a bit of time Reebok Trotter depending on length of contracts.

Having said that it was only £22 million when we were in the Premier League.

13Club debt rises to £163.8 million!!! Empty Re: Club debt rises to £163.8 million!!! on Tue Dec 31 2013, 11:18

Reebok Trotter

Reebok Trotter
Nat Lofthouse
Nat Lofthouse
' Turnover was down by 30 million from £58.5 to £28.5, while total staff costs for the year were £37.4m.'

The above sentence says it all. It's a recipe for disaster when you are spending more than you are earning. No wonder there is no money for Dougie to invest in new players. The sooner we get rid of the high earners from our Premiership days the better for all of us.

14Club debt rises to £163.8 million!!! Empty Re: Club debt rises to £163.8 million!!! on Tue Dec 31 2013, 11:26

Copper Dragon

Copper Dragon
Ivan Campo
Ivan Campo
On top of the staff costs there will usually be amortisation of players registrations.

15Club debt rises to £163.8 million!!! Empty Re: Club debt rises to £163.8 million!!! on Tue Dec 31 2013, 11:45

doffcocker

doffcocker
Ivan Campo
Ivan Campo
[You must be registered and logged in to see this link.] wrote:On top of the staff costs there will usually be amortisation of players registrations.


There's a player trading loss in there of £20,667,000 made up of amortisation, impairments, provisions, and profit on disposals.

16Club debt rises to £163.8 million!!! Empty Re: Club debt rises to £163.8 million!!! on Tue Dec 31 2013, 11:45

Reebok Trotter

Reebok Trotter
Nat Lofthouse
Nat Lofthouse
What would happen if heaven forbid, Uncle Eddie, were to pop his clogs? I'm sure I read somewhere that neither his son or daughter have any interest in football.

17Club debt rises to £163.8 million!!! Empty Re: Club debt rises to £163.8 million!!! on Tue Dec 31 2013, 11:50

aaron_bwfc

aaron_bwfc
Moderator
Moderator
Fuuuuuuuuuuuucccccccccccccccckkkkkkkkkkkkkk!!! 168million?!?  Shocked 

I wouldn't even like to pay off the .8 of that, though with the likes of Ngog and Mears on the books i'm not surprised we are in the shit.

18Club debt rises to £163.8 million!!! Empty Re: Club debt rises to £163.8 million!!! on Tue Dec 31 2013, 11:52

BoltonTillIDie

BoltonTillIDie
Nat Lofthouse
Nat Lofthouse
That's a whole heap money...this is why getting in the Premiership is really important. If we managed to get back in I suspect we'd not invest much money on the squad in an attempt to reduce the debt.

19Club debt rises to £163.8 million!!! Empty Re: Club debt rises to £163.8 million!!! on Tue Dec 31 2013, 11:52

Norpig

Norpig
Nat Lofthouse
Nat Lofthouse
[You must be registered and logged in to see this link.] wrote:What would happen if heaven forbid, Uncle Eddie, were to pop his clogs? I'm sure I read somewhere that neither his son or daughter have any interest in football.

i've wondered this as well, it needs sorting out we can't rely on his family just writing off the debt like Jack Walker did.

we need a rich owner, start a whip round or sell part of the stadium to a supermarket again!

20Club debt rises to £163.8 million!!! Empty Re: Club debt rises to £163.8 million!!! on Tue Dec 31 2013, 11:52

Natasha Whittam

Natasha Whittam
Nat Lofthouse
Nat Lofthouse
Why does anyone give a shit? Football clubs of our size and stature simply don't go out of business. If the debt was £300m would anything really change?

I wish we would go out of business, but I'm not that lucky.

21Club debt rises to £163.8 million!!! Empty Re: Club debt rises to £163.8 million!!! on Tue Dec 31 2013, 11:54

Guest


Guest
Can we not just declare ourselves bankrupt and start again?

My mate's a builder and he's done it a few times.

Simples.

22Club debt rises to £163.8 million!!! Empty Re: Club debt rises to £163.8 million!!! on Tue Dec 31 2013, 11:55

Norpig

Norpig
Nat Lofthouse
Nat Lofthouse
[You must be registered and logged in to see this link.] wrote:Why does anyone give a shit? Football clubs of our size and stature simply don't go out of business. If the debt was £300m would anything really change?

I wish we would go out of business, but I'm not that lucky.
 they may not go out of business but look at Portsmouth for what can happen to  a club with massive debts.

23Club debt rises to £163.8 million!!! Empty Re: Club debt rises to £163.8 million!!! on Tue Dec 31 2013, 11:56

Natasha Whittam

Natasha Whittam
Nat Lofthouse
Nat Lofthouse
[You must be registered and logged in to see this link.] wrote:
 they may not go out of business but look at Portsmouth for what can happen to  a club with massive debts.

We're going the same way as Portsmouth because we've had a succession of awful managers, not because we are skint. There are plenty of clubs doing ok that don't have a pot to piss in.

24Club debt rises to £163.8 million!!! Empty Re: Club debt rises to £163.8 million!!! on Tue Dec 31 2013, 12:21

Jack Russell

Jack Russell
David Lee
David Lee
[You must be registered and logged in to see this link.] wrote:
[You must be registered and logged in to see this link.] wrote:Why does anyone give a shit? Football clubs of our size and stature simply don't go out of business. If the debt was £300m would anything really change?

I wish we would go out of business, but I'm not that lucky.
 they may not go out of business but look at Portsmouth for what can happen to  a club with massive debts.
 
I Used to go and watch Stockport County in the eighties when I couldn't afford away games look where they are now !

 Shocked

25Club debt rises to £163.8 million!!! Empty Re: Club debt rises to £163.8 million!!! on Tue Dec 31 2013, 12:25

Reebok Trotter

Reebok Trotter
Nat Lofthouse
Nat Lofthouse
[You must be registered and logged in to see this link.] wrote:Why does anyone give a shit?

We give a shit because we are passionate about our club. We have seen what has happened to teams like Leeds, Portsmouth and Coventry and we genuinely care about the future of our great club.

26Club debt rises to £163.8 million!!! Empty Re: Club debt rises to £163.8 million!!! on Tue Dec 31 2013, 12:26

Culcheth_White

Culcheth_White
Andy Walker
Andy Walker
Breadman wrote:Can we not just declare ourselves bankrupt and start again?

My mate's a builder and he's done it a few times.

Simples.
I'd imagine that would be the worst case scenario, we could end up like Pompey, but at least the club would still be there.

27Club debt rises to £163.8 million!!! Empty Re: Club debt rises to £163.8 million!!! on Tue Dec 31 2013, 12:28

aaron_bwfc

aaron_bwfc
Moderator
Moderator
Is this another way of the club telling the fans we won't be signing anyone in January?

28Club debt rises to £163.8 million!!! Empty Re: Club debt rises to £163.8 million!!! on Tue Dec 31 2013, 12:29

Natasha Whittam

Natasha Whittam
Nat Lofthouse
Nat Lofthouse
[You must be registered and logged in to see this link.] wrote:
We give a shit because we are passionate about our club. We have seen what has happened to teams like Leeds, Portsmouth and Coventry and we genuinely care about the future of our great club.

Leeds are above us with a much better squad - I'm happy to go the same way as them.

29Club debt rises to £163.8 million!!! Empty Re: Club debt rises to £163.8 million!!! on Tue Dec 31 2013, 12:31

Reebok Trotter

Reebok Trotter
Nat Lofthouse
Nat Lofthouse
[You must be registered and logged in to see this link.] wrote:

Leeds are above us with a much better squad - I'm happy to go the same way as them.

Good for you.

30Club debt rises to £163.8 million!!! Empty Re: Club debt rises to £163.8 million!!! on Tue Dec 31 2013, 12:34

bwfc71

bwfc71
Ivan Campo
Ivan Campo
Just had a briefest look at the accounts.....

Firstly Burnden Leisure is registered at Companies House and as such is classed as a separate entity from owner Eddie Davies. Therefore is doesn't matter how much Eddie is worth as Burnden Leisure is completely separate from his own personal wealth.

MIL is, I assume, referring to the Investment Funding company that is based in The Bahamas or British Virgin Islands, ahich again I am presuming, Eddie has a personal stake in.

Also lets not forget that Eddie does not pay the same rate of personal tax as any other "millionaire" who lives in the UK as he lives in the Isle of Man which is a tax-haven.

Finally lets not forget that due to various Data Protection laws one can only guess at Eddie's personal wealth due to his own assets and what he has owned previously - WE DO NOT KNOW WHAT REAL WEALTH EDDIE ACTUALLY HAS - therefore a good educational guess is that it is much more that popular speculation - unless one has access to all his financial accounts!!!!!

From the accounts there are 4 exceptional costs which have attributed to the rise in the debt:-
1. Buying out De-Vere's with regards to the Hotel
2. Buying the Sports Educational company
3. Removing Coyle and his team and bringing in Freedman and his team
4. New catering contracts

What, also, hasn't helped are the new sponsorships which are approximately 70% lower in value than the previous ones. Then of course there are the mundane costs such as utlities, like for everyone else, have gone up in value and costing much more now than 12 or even 18 months ago.

With regards to MIL, again, as I have stressed before they will probably have many financial products with which to help with the investment of BUrnden Leisure - such as revolving facilities, ForEx, long-term loans etc etc etc which also help with the spread of the cost and the lower interest rates which Eddie seems to have gained for the company.

But when you consider what the assets we do have such as prime land, the Arean, The Stadium, The Hotel, The Academy, the new office block and educational block (when completed) - add all those up and the financial worth still outstrips what we owe! (But fair enough the debt cant continue to spiral upwards like it currently is doing).

What did surprise me in the cost cutting out of the auxillary staff only 3 have left during the last financial year!!!! I thought that would have been quite a few more, but why bring in new Directors??? Also , if anything, they now need to look at their more peripheral costs such as the continuation of the funding of the "Match Day" buses and the one-off bargain bonanaza cheap ticket matches as well as the pre-match drinks hall/venue.

To be fair, if you take out the exceptional costs (Hotel, Educational company and Coyle sacking) then the debt is actually just fractionally higher than last year (not even by a million!!!).


Yes it looks bad, from from a detailed popint of view looking at all areas then its not as bad as one thinks - its just the large numbers that look frightening!!!

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