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Post by Macmoish on Jan 1, 2013 8:34:56 GMT
What's a profit? GUARDIAN
Wigan Athletic report annual net profit for the first time in six years
• Club reported a net loss of £7.2m in 2010-11 • Borrowings reduced from £72.2m to £20.5mWigan have reported a net profit of £4.3m for the financial year ending on 31 May 2012. It is the first time in six years that the club has reported a positive result, with the sum in marked contrast to the £7.2m net loss of 12 months ago. The figures cover the 2011-12 season which ended with the Latics in 15th place, with turnover up from £50.5m to £52.6m. Wigan said on the club's official website that while salaries remain their biggest expense, they had trimmed them from £39.9m to £37.7m, with £10.4m spent on new players. The sale of Charles N'Zogbia to Aston Villa meant that they made £7.9m profit on player sales. The club's debt, including borrowings and loans from chairman Dave Whelan and his family, reduced to £20.5m from £72.2m, £48m of which was converted into equity. "The results are once again encouraging and we are very pleased to report a net profit position in a very competitive environment," said the chief executive, Jonathan Jackson. "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." Roberto Martínez, the manager, welcomed the news ahead of the Latics' home match against Manchester United in the Premier League on Tuesday. He said: "This is very exciting news because more than anything it allows us to build a very strong future for Wigan Athletic. "It's very rare in modern football to be able to get those sort of results and obviously, for a club like ours, we have always relied on our chairman at the end of the season to balance the books and to put money in, so it's refreshing and it's a different way to work. "It shows how hard we had to work behind the scenes in every department to be able to produce those results. But most significantly now we'll be able to invest that money in improving our facilities to take the football club to a different level." Making a profit will enable Wigan to improve their training facilities, a project Martínez hopes will be completed in just over a year. He said: "In 1999, moving to the new stadium gave the football club a different angle of what we wanted to achieve. "Now is a very similar year in terms of investing in the structure and the facilities that will give us a massive boost to become a football club that is close to reaching our long-term ambitions. "It's an exciting project. We're working already with the architect and our timescale will be trying to complete everything over the next 13-14 months." www.guardian.co.uk/football/2012/dec/31/wigan-athletic-report-annual-net-profit
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Post by Macmoish on Jan 1, 2013 8:37:02 GMT
WIGAN OFFICIAL SITE Club release financial statements for the year ended 31 May 2012 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.” www.wiganlatics.co.uk/news/article/12-12-31-club-financial-statement-568715.aspx?pageView=full#anchored
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Post by Macmoish on Jan 1, 2013 8:38:28 GMT
And it's not by having big attendances...Their attendances are only slightly than ours...18,000+
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Post by Macmoish on Jan 1, 2013 9:10:51 GMT
BBC Wigan makes first profit for six years Premier League football club Wigan Athletic has posted its first profit in years as it trims salaries and cuts debt. The club reported a net profit of £4.3m for the year to the end of May, compared with a loss of £7.2m the year before. It is the first time in six years Wigan has made a profit. Wigan ended the season covered by the figures in 15th place in the top-ranked Premier League. Turnover was £52.6m, up from £50.5m. Wages were the club's biggest expenditure, although the bill has fallen to £37.7m, compared with £39.9m. It spent £10.4m on new players, and gained £7.9m in profit from player sales, including that of Charles N'Zogbia to Aston Villa. Debt, which includes borrowings and loans from Wigan's chairman Dave Whelan and his family, was cut to £20.5m from £72.2m, with £48m in borrowings converted in to shares in the club. Wigan's chief executive, Jonathan Jackson, said the club was getting closer to breaking even: "The results are once again encouraging and we are very pleased to report a net profit position in a very competitive environment." "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 www.bbc.co.uk/news/business-20874197
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Deleted
Deleted Member
Posts: 0
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Post by Deleted on Jan 1, 2013 9:17:03 GMT
You have to give Wigan credit for what they have achieved over the last few years,makes us look foolish
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Post by Lonegunmen on Jan 1, 2013 9:27:06 GMT
Whelan is a shrewd businessman who knows his football through and through.
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Post by Jo-Onenil on Jan 1, 2013 14:41:47 GMT
And he knows what stability is and sticked with Martinez when they were rock bottom, and it paid off. Fairplay to him!
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Post by Macmoish on Jan 3, 2013 13:15:46 GMT
Meanwhile at Everton
Rob Harris @robharris
Everton 2011-12 financial results in: losses soared 70% to £9.1M. Turnover down to £80.5M from £82M. Wages up 10% to £63.4M. Debt at £46M Retweeted by Matt Slater
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Post by Macmoish on Jan 4, 2013 8:06:08 GMT
Just wait till the QPR accounts come out I think in March...This year...Next year...OISHHHHH! GUARDIAN Everton's wage bill rises to 75% of turnover • Overall debt rises from £44.9m to £46m for 2011-12 • Club record net loss of £9.1m for the same period Andy Hunter The Guardian, Thursday 3 January 2013 17.30 EST The financial constraints on David Moyes's attempts to lead Everton into the Champions League have been underlined in the club's latest set of accounts that show a net loss of £9.1m for 2011–12 and wages rising to 75% of turnover. Everton's loss increased by approximately £4m on 2010-11 and overall debt rose from £44.9m to £46m, despite the sales of Mikel Arteta, Yakubu Ayegbeni, Diniyar Bilyaletdinov, James Vaughan and Jermaine Beckford. Nikica Jelavic and Darron Gibson were Moyes's only permanent signings in that period, though Steven Pienaar and Landon Donovan were signed on loan and new contracts were awarded to Marouane Fellaini, Tim Howard, Phil Neville and Ross Barkley. The club's wage bill increased from £58m in 2010-11 to a record £63.4m the following year. Wages accounted for an alarming 75% of turnover, which fell from £82m to £80.5m as a result of four fewer games being selected for live television, lower attendances and a fall in season-ticket sales. Bill Kenwright, Everton's chairman, said: "The last financial year presented us with a new series of challenges in addition to the usual pressures we confront on a regular basis. An inexplicable lack of support from our broadcast partners resulted in a significant reduction in live TV selections on previous years, while a fall in gate receipts and season-ticket sales also had a negative impact on our bottom line. I am happy to report that all three of these important contributors to our fiscal well-being are in a much improved position this season." Kenwright also reiterated his intention to sell Everton to a suitable buyer. He added: "My desire to find a person, or institution, with the finance to move us forward has not diminished. Despite the challenges presented by a global economic downturn, we remain positive and determined. We will find major investment." Moyes recently admitted "there is only a small amount available for maybe a couple of loan signings" in January, despite taking Everton into contention for Champions League qualification in the final season before a record Premier League television deal comes into effect. Everton, meanwhile, have announced that Phil Jagielka has signed a two-year contract extension that will keep him at Goodison Park until 2017. The 30-year-old England international has been outstanding since his £5m arrival from Sheffield United in 2007 and is earmarked to be the club's next captain by Moyes. Everton are also looking to secure Leon Osman on a new long-term deal. Osman has 18 months remaining on his deal. www.guardian.co.uk/football/2013/jan/03/everton-wage-bill-turnover-accounts
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Post by nadera78 on Jan 4, 2013 10:33:03 GMT
From next year, with the huge rise in domestic TV income and foreign rights yet to be sold, there is absolutely no reason whatsoever why every club should not make a profit. If they pee the additional GBP40million a year up the wall on players wages then every single owner should be dragged outside and shot.
Even if Everton spend half the new money, with such a good manager as Moyes at the helm, they should be able to sensibly improve the squad and be able to pay down their debts.
A club like QPR, if properly run, should be able to maintain a place in the PL and run at break even.
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Dave Sexton
Posts: 1,896
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Post by ingham on Jan 5, 2013 15:52:51 GMT
That seems to be the problem. Once it is accepted in principle that you must spend more than your rivals to maintain your position, increasing the TV money makes no difference.
If Each Club earns £1 million and spends it all on players, but the TV money is raised to £10 million per year, all that happens is that wages are ten times higher.
Nobody plays any better. And the number of successful Clubs doesn't increase.
Increasing a Club's means is of no significance unless the Club is determined to live within them. But they aren't. Wigan are boasting about how restrained they are when they've been recording heavy losses for years.
One year's profit and they think they've cracked it.
Let's see them stick to that philosophy when they're losing, when they get relegated, when they go down and down and down.
And how will second and third tier Clubs replace the QPRs and Wigans? By spending more than they earn.
I think the real problem lies with shareholders. They run up enormous losses because they want to make enormous profits. They get out with the profits, and leave the Club burdened with the losses.
The reason for this is straightforward. They know nothing about football, they have no talent, and football is almost impossible for anyone to be successful in, long term.
So the only way is to overspend massively. If Clubs lived within their means, shareholders wouldn't make any money at all, because the Clubs would need extraordinary talent at their disposal to achieve success without spending ridiculous sums.
Clough's sidekick Taylor might have known how to do it, once upon a time, signing nobodies for a manager who knew how to turn a squad of sow's ears into silk purses.
But there is no incentive to do that now. And Clough and Taylor didn't make Forest bigger or richer. They just won things on the pitch.
As far as I can see, shareholders have no intention of living within a Club's means, because, in terms of talent, it would mean living within the shareholders' limitations.
And they know nothing, and can do nothing.
Even if they were all football geniuses, it would make no difference either. 92 Clubs can't win the title, no matter how much money they all spend.
'We'll just do our best' won't work either, because the shareholders won't make a packet on their 'investment' merely by TRYING to do well.
Spending tomorrow's money today creates wealth for the people who will get out tomorrow, but it will leave the Clubs counting the cost.
That's the trick. The players pocket the borrowed money, the managers too, and the investors when they sell up. No doubt that is why players, managers and investors move on. If they stayed put, their utter inability either to succeed or to make money would damage their OWN credibility and, worse, lead to THEM losing money.
By moving about, the illusion that change means improvement can be sustained, especially with the barrage of disinformation, deception and misrepresentation techniques available to today's speculators.
Very interesting articles and posts.
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Post by Macmoish on Jan 8, 2013 12:34:36 GMT
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Post by Macmoish on Jan 9, 2013 13:35:51 GMT
ets 13m sportingintelligence sportingintelligence @sportingintel Chelsea's wage bill 2011-12 was £171m, down from £189.5m, but still £468,493 PER DAY. (That's still lower than #mcfc £552,846 per day). #cfc See also (as recommended by SportingIntel - Andy Green @andersred re Chelsea www.twitter.com/andersred
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