The financial reports have been released for the 2011 – 2012 season for Wigan Athletic and it makes good reading. Firstly we have made a profit for the first time in 6 seasons, plus the report answers a question that Latics fans have been asking for years – who owns the Ground?
Latics have printed the financial reports to the end of May 2012 and in short things agree looking good off the pitch.
Salary, expenditure and transfer related costs are all down, whilst turnover has increased. This basically means that we as a club have now reduced the debt owed to the bank and made a profit of around £4 million.
Some of the debt was offset by turning £40+ million into equity and the shares and ordinary shares of the company transferred over to Wigan Athletic Holdings.
This was the bit in the report that gave the indication that Wigan Athletic DO have the main say in the Stadium. As Wigan Athletic Holdings have the controlling share in the company that owns the DW Stadium, it means that Mr Whelan really did pass over control.
The full report will be published soon, but here is the Club statement:
The Club has released its financial results for the year ended 31 May 2012 which show a net profit of £4.3m compared with a £7.2m net loss in 2011. This is the first time in six years that the Club has reported a net profit.
The figures cover the season 2011-12 when Latics achieved 15th position in the Premier League.
EBITDA (earnings before interest, tax, depreciation and amortisation of players) was £8.9m compared with £4.9m in the previous year.
Turnover increased to £52.6m compared to £50.5m in 2011.
Salary costs were the most significant expenditure but these reduced to £37.7m compared to the previous year cost of £39.9. Total administrative expenses including amortisation of player contracts reduced to £55.0m from £58.4m in the previous year.
During the year the Club invested £10.4m on new players whilst profit from the sale of players increased to £7.9m from £2.3m in the previous year primarily due to the sale of Charles N’Zogbia to Aston Villa.
Net debt at the year-end including bank borrowings and loans from Chairman David Whelan and his family reduced significantly to £20.5m compared with £72.2m in the previous year. During the year £48m of debt was converted to equity which significantly reduced the Club's long term liabilities. At the same time the ordinary and preferred ordinary shares of the Club were transferred to a new parent company, Wigan Athletic Holdings Limited which also holds a controlling interest in the company operating the DW Stadium.
Chief Executive Jonathan Jackson commented, "The results are once again encouraging and we are very pleased to report a net profit position in a very competitive environment. By increasing turnover and controlling costs the Club is continuing to progress to a break even operating position which all football clubs are aspiring to but many are finding it difficult to achieve.
"We continue to maintain our position in the Barclays Premier League by significant investment in the playing squad to strengthen our position on the field in our eighth year in the top division. In addition, major improvement of our academy and training facilities will commence this year to expand our strategic aim of consolidating and enhancing our infrastructure with increased focus on youth development. This would not be possible without the continued financial support of Chairman, David Whelan who remains an enthusiastic and committed owner who has taken his home-town club from the lower reaches of the Football League to being an established Premier League club. The conversion of £48m of debt to equity has significantly strengthened the Club's financial position and has, to a very significant extent, written off the debt owed to Mr Whelan.”
“With significant increases in revenues forecasted for Premier League clubs from broadcasting agreements next year, the Club is ideally placed to continue its organic growth and continue to compete in the highest profile and most competitive league in the world from a sound and sustainable financial position.”
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