Premier League News: Bolton Wanderers disclose £34.5 million loss
Premier League club Bolton Wanderers have disclosed an annual loss of £34.5 million for the past financial year.
Phil Gartside, Chairman of Bolton Wanderers FC, is of the view that a change in the management structure and the bigger squad are the main reasons for the losses. Owen Coyle was hired in January and new players were also brought
in that made the wage bill rise.
In the last year or so, the 1st team squad has increased from 24 to 30; at the same time no high-ranking players left the club.
Approximately £15 million was spent on fresh players including midfielders Sean Davis and Lee Chung-Yong and defender Zat Knight, and the wage bill increased by 14% from £40.9 million to £46.4 million as a result.
Gartside acknowledges that the Wanderers now have a bigger squad and also insists that they are financially sound and will not become a "selling club".
He said: "We have spent more money on players than we have in the past, in the last three or four years. That has left us with a large amortisation sum this year of £60-£70 million, which is part of the loss.”
The Trotters have shown slight improvement with earnings in some areas such as gate receipts, broadcasting revenue and merchandising sales all getting better.
Gartside has made an effort to guarantee fans that the debt won’t be major problem; moreover, club owner Eddie Davies remains totally loyal and committed.
He feels that the club is fortunate in a way that only a small portion of the debt is owed to the bank and it puts them in really strong position; also, there is no indication from Eddie at all that he desires to leave the club.
He added: “We wanted to shed players in the summer to bring the wages down but we couldn't because the market has died. We are trying to control costs, we are trying to reduce our wage bill and that will continue.”
The club wishes to carry on life in the Premier League. The Wanderers have been in the top league since 10 years and it is their priority to remain there for many years to come.
Bolton has a unique record of staying in the top flight without winning it. In 1995, after a gap of 15 years they regained access to top-flight football; their latest comeback was seen in 2001 and since then, they have stayed part
of it. Currently, after 12 matches, they reside at the 6th spot in the League table for the 2010-11 season.
Premier League clubs’ debt problem
English clubs have a history of huge debts and it is believed that 56% of Europe’s debt is owed by Premier League clubs. The figure has reached to £3.5 billion. Manchester United and Liverpool alone have debt figures adding up
to more than £1 billion.
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