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Wigan Auditor Says Soccer Club Would Be at Risk Without Owner’s Millions
By Tariq Panja – Mar 2, 2011 2:04 PM GMT inShare0More
Business Exchange Buzz up! Digg Print Email Wigan Athletic’s auditor said there’s “material uncertainty” about the soccer team’s future as a going concern without infusions from its millionaire owner. The club forecasts losses for the next two years.Wigan, playing its sixth season in England’s Premier League, is sustained by funding from its owner Dave Whelan. He’s converting into equity 48 million pounds ($78 million) of loans to the team from his family’s companies.
The team has the league’s second-lowest attendance and posted a loss of 4 million pounds for the year ended May 31 2010, 31 percent narrower than a year earlier, according to a filing at Companies House. Sales declined 7 percent to 43 million pounds, less than half the amount league leader Manchester United makes from its sponsorship activities alone.
Wigan’s statement that it will continue to post losses, its reliance on Whelan’s funding and ongoing talks with Barclays Plc about the future of a 20 million-pound loan led its auditor Fairhurst to say in the accounts that there’s “material uncertainty which may cast significant doubt about the company’s ability to continue as a going concern.”
In the accounts statement, Whelan said he aimed to strengthen Wigan by “reducing the debt and creating a lasting and sustainable legacy for future generations of Wigan fans.” The conversion of the loans into equity is part of that plan, he said.
A call to Wigan seeking comment wasn’t immediately returned.
Whelan, 74, who made his fortune in sports goods retailing, took the team from the fourth tier of English soccer to the Premier League within 10 years of his 1995 purchase. The club’s run of never being relegated from the top flight is at risk this season with the Latics bottom after 28 matches.
The team, which has never won a major trophy, frequently plays against a backdrop of empty seats even though it has the cheapest tickets in the league. It has an average attendance of 16,335 at its 25,000-seat DW Stadium, more only than newly promoted Blackpool, whose capacity is restricted to 16,000.
To contact the reporter on this story: Tariq Panja in the London newsroom at tpanja@bloomberg.net
To contact the editor responsible for this story: Christopher Elser at at celser@bloomberg.net
Indeed, thought it would be good for those who knock Whelan to see for themselves how much the club is indebted to him :obscene-drinkingcheers:
It won’t be a good enough explanation for some.
It hasn’t been good enough the first 4,000 times it was explained to them.
Come on there are big words in there….. maybe it should read
“Wigan lose money year after year, would be in trouble without Whelan.”
truelaticfornever whats your take on this article?? :think:It’s probably a bit long for him and there are no pictures in it :confusion-seeingstars:
During our six years int prem,how much ave SKY give us?……………..
do tell Grifford,seein as yer Whelans spokesman! :?
However much Sky have given us it’s bound to be included in the figures that Bloomberg have audited. Whelan’s money is, in that case, obviously needed to top up our income..
During our six years int prem,how much ave SKY give us?……………..do tell Grifford,seein as yer Whelans spokesman! :?
So you didn’t read it then :angry-banghead: :angry-banghead: :roll: :roll: :roll: :roll:
During our six years int prem,how much ave SKY give us?……………..do tell Grifford,seein as yer Whelans spokesman! :?
So you didn’t read it then :angry-banghead: :angry-banghead: :roll: :roll: :roll: :roll:
He’s converting into equity 48 million pounds ($78 million) of loans to the team
:violence-instagib: :violence-instagib:
He’s converting into equity 48 million pounds ($78 million) of loans to the team
:violence-instagib: :violence-instagib:
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