The 2016-17 accounts for Bolton Wanderers and their parent company show the impact of relegation from the Championship: Financial results. Bolton are, of course, now back in the Championship and have every hope of staying up, although they are operating on one of the lowest budgets in the Championship.
Former owner Eddie Davies wrote off an eye watering £198m of debt, but there is still £22m of hard debt remaining. This includes £10m left in by Eddie Davies.
Relegation saw turnover slump from over £24m to £8.3m. The most important factor here was the decline in broadcasting revenue from £12.9m to £1.7m. Gate receipts fell marginally from £3.3m to £3.1m. Operating losses went up from £8m to £12.9m.
On the more positive side the wage bill of £12.6m was down by £6m. In 2011 it was £56m. The wages to turnover ratio of 63.4 per cent was lower than fifteen Championship clubs in 2016/17. In 2013 it was well over 100 per cent. Expenditure on sales and administration was cut by £4m which is a substantial amount and suggests that spending in this area was affected by the legacy of the club's days in the top flight. A £5.5m profit was made on player trading.
The club is clearly following a prudent path, while seeking to secure the larger revenue streams available in the Championship.
Comments
Post a Comment