English Championship football club, Bolton Wanderers, have recently announced that they are in dept of £163.8m (AUD$304.35m).
Parent company, Burnden Leisure PLC, have released a statement containing its figures for the year that ended in June 2013.
In the club’s first season in the Championship (after being relegated from the Premier League) the group made a loss of £50.7m (AUD$94.2m), that seen their net debt rise to £136.5m (AUD$253.6m).
Bolton chairman Phil Gartside has told English press “This year’s results show the difficulties faced in the football business when a club has enjoyed a sustained and successful period in the Premier League, in our case 11 years, then suffers relegation back to the Football League Championship.”
Bolton were supplied with the £16m (AUD$29.7m) Parachute Payment that relegated Premier League clubs receive for financial aid.
This seems like a generous offer to help support clubs but those who are relegated have their Broadcast revenue cut from £42m (AUD$78m) to just £19 (AUD$35.3m).
The reduction in Broadcast revenue alone can see clubs that have spent long periods of time in the top flight plummet even lower trying to foot bills and wages.
The supporters have also effected the negative financial downturn that comes with the downgrade from top flight football with gate takings dropping from £5.7m (AUD$10.46m) to £3.8m (AUD$6.97m). That’s an attendance decrease of 24% for home fixtures.
Sponsorship and Corporate sales have also plummeted to add insult into injury.
We extend our warm wishes to the Bolton Wanderers Football Club and its supporters and all the very best in rebuilding the club in these difficult times.