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Bolton seek to control costs

Following relegation from the Sky Bet Championship to League One, turnover for Bolton Wanderers (the football business of Burnden Leisure) decreased across the business during the 2016/17 financial year to £8.3m from £24.3m. This was predominantly due to the loss of the Premier League parachute payments which the club had received for the previous four years following relegation in 2011/12. This led to broadcasting revenue dropping to £1.7m from £12.9m.

Total wages and salaries reduced by £5.9m from the previous year to £12.6m and the ability to achieve further reductions was hampered by the burden of a significant number of playing contracts that ran beyond the end of the 2015/16 season. The annual report notes, 'A great deal of work has also been undertaken to control all other costs through the business. Encouragingly, this has resulted in a £4m reduction in sales and administrative expenses. It is due to these cost savings that, despite the significant £16m reduction in turnover [across the whole business], the operating losses [£12.9m on the football business] have only seen an increase of £4.9m from the levels experienced in the previous year.' A £5.5m profit from player sales (up from £0.4m) also made a big difference.

Gate receipts were down marginally at £3.1m. Corporate hospitality was up from £295k to £614k. Merchandising was down from £1.062m to £656k. Sponsorship and advertising reduced from £1.7m to £832k.

At £6.4m the hotel business accounts for 44 per cent of Burnden Leisure turnover. Its contribution to turnover was down from £7.1m to £6.4m.

Dean Holdsworth received £50k plus the cost of his legal fees in settlement of a termination of employment dispute.

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