Club makes net loss for year ending May 2015 but remain ‘committed to success’.
- Wigan Athletic report net loss of £3.9 million for the year ended 31 May 2015.
- Net loss reported for first time since 2011.
- The club remain compliant with ‘Financial Fair Play’ rules.
- ‘The club remains committed to achieving success’ – Latics CEO Jonathan Jackson.
The figures cover the season 2014-15 when Latics were relegated to League One.
Turnover decreased to £28 million compared to £37 million in 2014 as the club received lower Premier League ‘parachute payments’ and did not benefit from revenue from FA Cup and Europa League competitions as it had done in the previous year.
During the summer transfer window in 2014, the club invested over £10 million in new players with the intention of improving the playing squad and creating another promotion challenge. Unfortunately, this did not materialise and the club were relegated to League One at the end of the season.
Profit from the sale of players was £7.3 million, primarily due to the sale of James McArthur and Callum McManaman.
Total expenses including salary costs and amortisation of player contracts decreased to £38.5 million from £47 million in the previous year. Salary costs were again the most significant expenditure and these reduced to £26 million compared to the previous year cost of £30 million. Significant reductions in player salaries were achieved in January 2015 and since the year end to ensure that future costs remain aligned to turnover.
Net external debt remained at £9.5 million compared to £9.4 million at 31 May 2014 whilst overall net liabilities increased to £13.3 million from £9.4 million in 2014.
Chief Executive Jonathan Jackson commented: "The financial results reflect a defined strategy that was intended to allow the club to assemble a squad of players that could challenge for promotion back to the Premier League. It was hugely disappointing that we were relegated from the Football League Championship and it certainly demonstrated the unpredictability of football and the importance of financial sustainability at all levels. It became apparent as the season progressed that effective player trading was necessary in an attempt to improve results but also to enable the club to absorb potential future turnover reductions.
“Prudent financial management including implementing some difficult and timely decisions have restricted losses during the year to within acceptable and budgeted levels, but has also enabled the club to continue to invest in the playing squad and set a financial target to return to break even this season.
“The parachute payments received from the Premier League provide some protection from the significant reduction in income and continue until 2017. The club remains committed to achieving success and the new squad of players that has been assembled since the year end is now tasked with our primary objective of promotion to the Championship within the financial parameters that we operate.
“The continued financial support of the Whelan family has allowed the club to continue pursuing long-term strategic goals and although the financial results for the year ended 31 May 2015 mirrored the disappointments on the field, the owners remain committed to developing and improving Wigan Athletic to enable the club to return to the highest level of English football.”