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Bolton Wanderers Debt Up To £163.8M

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http://www.bbc.co.uk/sport/0/football/25559504

Bolton have announced they are £163.8m in debt after parent company Burnden Leisure PLC released its figures for the year ending June 2013 - the club's first season in the Championship.

The group made a loss of £50.7m, which saw net debt rise from £136.5m.

Wanderers were relegated from the Premier League in May 2012, ending their 11-year stay in the top flight.

"The widening gap between the leagues makes the transition difficult," said Bolton chairman Phil Gartside.

"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."

Sheffield Hallam University sports finance expert Rob Wilson described their losses as "significant", adding that it highlighted the harsh reality of life outside the Premier League.

"The grim reality of Championship football is your revenues are severely diminished and you cannot afford to pay players on big wages," Wilson told BBC Sport.

"A £50m loss over the course of the year is massive, especially when you consider their turnover is something like £28m.

I can tell why Rob is an expert in finance.

Prem League football teams a reflection of the UK economy in general, living way beyond it's means. If the TV money ever evaporates it's hard to see how the Prem league would stay afloat.

If you get relegated no one wants your players and you are stuck with them, I'm amazed that contracts haven't got clauses in them to say if the club gets relegated your wages get cut accordingly.

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http://www.bbc.co.uk/sport/0/football/25559504

I can tell why Rob is an expert in finance.

Prem League football teams a reflection of the UK economy in general, living way beyond it's means. If the TV money ever evaporates it's hard to see how the Prem league would stay afloat.

If you get relegated no one wants your players and you are stuck with them, I'm amazed that contracts haven't got clauses in them to say if the club gets relegated your wages get cut accordingly.

Do these figures include the Premier League parachute payment? That is £15m in year 1 and taking that off the turnover would leave it looking even uglier...

http://www.bbc.co.uk/sport/0/football/22171365

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http://www.bbc.co.uk/sport/0/football/25559504

I can tell why Rob is an expert in finance.

Prem League football teams a reflection of the UK economy in general, living way beyond it's means. If the TV money ever evaporates it's hard to see how the Prem league would stay afloat.

If you get relegated no one wants your players and you are stuck with them, I'm amazed that contracts haven't got clauses in them to say if the club gets relegated your wages get cut accordingly.

Many of the 'richest' premiership big boys are loaded with debt anyway and rely on continued success and an ever increasing fountain of cash from TV and merchandising to keep them going. They're like sharks that must keep on swimming or die.

As you say, an excellent analogue for the wider UK economy.

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Most of the Bolton debt is to the owner - a supporter/businessman based in the Isle of Man -so not as immediately threatening as you'd think.

Still, they fell victim to the mentality of the prem league:

Hey, our income has gone up to £30 million a year, should we

a) keep expenditure low and make a profit

b )spend £29.9 million a year

c) take on a debt that needs £30million a year to service it and hope we never get relegated

No prizes for the choice made by the Wanderers.

Y

Edited by yokel

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No real sympathy...They obviously haven't cut their cloth accordingly...

Take my club Yeovil, who are operating in the Championship, on a budget of around £1.5m to £2m...There's only 10 points between us, and they could well be level on points if they were to go into administration...

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If you get relegated no one wants your players and you are stuck with them, I'm amazed that contracts haven't got clauses in them to say if the club gets relegated your wages get cut accordingly.

Well-run clubs do have these clauses in contracts.

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Blackburn Rovers tackling £50M debts apparently

http://www.lancashiretelegraph.co.uk/news/10782518.Blackburn_Rovers_tackling___54_5m_debt/?ref=mmsp

I'm sure this is no problem despite posting a £36.5M loss last season.

...and what's wrong with all this, is that they could go into administration tomorrow, wipe out all of their debts, and lose just 10 points...whereas well-run clubs are penalised for not going into debt...

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