Wigan Post Profit Despite Tough Year
Thu 2nd Jan 2014 | Money & Finance
Wigan Athletic Football Club posted a net profit of £822,000 for the year ended 31 May 2013.
Covering 2012-13 season when they won the FA Cup then relegated from the Premier League in the same week, the figure was down on the £4.3m net profit reported in 2012, however, turnover increased to £56.4m compared to £52.6m in 2012.
EBITDA (earnings before interest, tax, depreciation and amortisation of players) was £5.8m compared with £8.9m in the previous year.
Chief Executive Jonathan Jackson commented, "The financial results are satisfactory against the backdrop of relegation from the Premier League and the memorable FA Cup success. By increasing turnover and controlling costs the Club is continuing to report a healthy position in respect of profitability and debt.
"Our eighth year in the top division unfortunately saw us relegated after finishing in 18th position however the historic achievement of winning the FA Cup meant that the financial impact of relegation was softened in the year.
"The growth and success of Wigan Athletic would not have been possible without the continued financial support of Chairman, David Whelan who remains an enthusiastic and committed owner and is determined to help his club return to the Premier League as soon as possible.
“However, it is essential that we remain financially sound to ensure that the long-term future of the club is secure and that the parachute payments receivable from the Premier League provide adequate protection from the significant reduction in broadcasting income and enable us to comply with recently introduced financial fair play regulations.”
Total expenses including salary costs and amortisation of player contracts increased to £62.7m from £55m in the previous year. Salary costs were the most significant expenditure and these increased to £43.7m compared to the previous year cost of £37.7m.
During the year the Club invested £10.9m on new players whilst profit from the sale of players was £8.2m primarily due to the sale of Victor Moses to Chelsea.
Debt at 31 May 2013 including bank borrowings and loans from Chairman David Whelan and his family remained similar to the previous year at £20.7m.
Image: Wigan Chairman Dave Whelan with the FA Cup Trophy. Action Images / Paul Currie
Posted by: Aaron Gourley
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