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Football finance shocker, No.4231

edited November 2010 in General Charlton
Bolton are £93m in debt.

From the Beeb

Bolton's financial losses nearly tripled last season due largely to the cost of changing manager and strengthening their squad.

According to accounts for the year ending 30 June, Wanderers' losses rose from £13.2m to £35.4m.

This includes £4.2m for sacking Gary Megson and prizing his replacement Owen Coyle away from Burnley in January.

Additions to the squad, such as Chung-Yong Lee and Zat Knight, saw wages increase 14% from £40.9m to £46.4m.

Comments

  • Heard this on the radio last night and thought I must have mis-heard the numbers.

    In the prem and you lose £35.4m so what hope have clubs in the other leagues got?
  • I must admit I was surprised at the level of debt - and they are not exactly massive spenders either! (Though £10m on Elmander was rather excessive)

    They are really punching above their weight in terms of their actual size (fanbase etc)

    Maybe it's time for a league for the super rich and a league for all the others.........
  • Bolton Squanderers !!

    This follows Bristol City's 11m loss recently reported.

    Utter insanity.

    How many clubs are currently on the market, and how many are any kind of a sound business proposition ??
  • Crazy stuff, but not necessarily that surprising - we were always held up as a financially stable club, but when we dropped out we found we'd been living beyond our means and Bolton are surviving in much the same way. It's fine as long as you stay in the top flight, but it's good night Vienna when you drop out. Fortunately for Bolton, Coyle seems like a very capable young manager and has them playing well so I don't see them being under any immediate threat. They'll be screwed if they do get relegated though.
  • If you get 40m just from tv rights alone, it amazes me how a club can still make a loss of over 35m in a season.

    Who have they bought that cost decent money? Elmander was a while ago so won't even be in these latest figures.
  • [cite]Posted By: AFKABartram[/cite]This includes £4.2m for sacking Gary Megson and prizing his replacement Owen Coyle away from Burnley in January.
    Pure insanity.
  • [cite]Posted By: Friend Or Defoe[/cite]
    [cite]Posted By: AFKABartram[/cite]This includes £4.2m for sacking Gary Megson and prizing his replacement Owen Coyle away from Burnley in January.
    Pure insanity.

    I doubt you'll find a single Bolton fan that doesn't think that was 4.2m very well spent.
  • I am not shocked.. I heard 2/3 years ago that they were in debt by about £60 mill and if they got relegated then they would be in deep trouble
  • All the time their debts keep growing, and at that level they must do, they get closer to being forced to sell players to survive. When they sell players they will go down, nnd they will be in as much debt at Portsmouth.

    What will happen is that the more the financial instutions fear this is coming the more pressure they will be put under to sell players.

    Ultimately they are doomed. They need a Billionaire to save them or it becomes a matter of when? not if?

    No wonder their Chairman is calling for a Premier League Two.

    In time Bolton will be replaced with a well run club that is currently in the Championship. Bolton will probabkly go into Administration, knock all their debts and/or fall into the Third Division.

    Sadly this is the evolutionary cycle that all clubs that try to stay in the Premier League too long will suffer.

    If Liverpool and Man Utd can't balance their books what chance to Bolton have?
  • Another reason why I am not at all bothered about getting back into that ridiculous league.
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  • [cite]Posted By: Chris_from_Sidcup[/cite]
    [cite]Posted By: Friend Or Defoe[/cite]
    [cite]Posted By: AFKABartram[/cite]This includes £4.2m for sacking Gary Megson and prizing his replacement Owen Coyle away from Burnley in January.
    Pure insanity.

    I doubt you'll find a single Bolton fan that doesn't think that was 4.2m very well spent.

    Yup. I don't understand why what are effectively manager 'transfer fees' are so balked at. What can you buy for 4.2 million? One, maybe two decent premiership players. Compare that to a manager who is arguably more important to the success of the team than any one player.
  • [cite]Posted By: Chris_from_Sidcup[/cite]
    [cite]Posted By: Friend Or Defoe[/cite]
    [cite]Posted By: AFKABartram[/cite]This includes £4.2m for sacking Gary Megson and prizing his replacement Owen Coyle away from Burnley in January.
    Pure insanity.

    I doubt you'll find a single Bolton fan that doesn't think that was 4.2m very well spent.
    I take it Coyle goes to the supporters meetings!
  • I thought I'd be shocked, but I'm not.

    Always thought they would be in trouble if relegated, especially with the way Phil Gartside has been looking for all sorts of changes to secure their place in the big money.

    Agree with KHA, eventually their place will be taken by a current well-run Championship club and Bolton will probably wipe their debts via administration. The thing is, their place as 'indebted small club in the Premier League' will also be taken by someone else, probably one of the current 'well-run clubs' once they begin to establish themselves as a consistent Premier League side. My money's on it being Stoke (despite their current reputation) or Birmingham in three years' time. Yo-yoing between the top two divisions is the most viable way to run a club long-term in the black in English football
  • Glad the EFL got hold of this issue promptly!

    ps CityAM are running an article where the first sentance is:

    “It is the semi-final that no one saw coming. Two teams with limited financial resources who were supposed to struggle...”

    so is it Donny/Charlton or maybe Fleetwood/Tranmere.  Nope, Spurs v Ajax !  I know it is relative, but really!


  • Until players wages are set to more normal but still very very well paid levels others will similarly fail. It’s very odd to me that this wage level stil persists outside of the top 6. Yes there’s greater TV income but the wages paid to the good but not superstar level player is unsustainable. 

    Aren't  Burnley  currently hailed as operating in a financially sensible fashion?

    I don’t get why the clubs outside the Top 6 don’t collectively do more to drive down the costs. Yes some break rank but evidence shows it’s long term foolish. 

    Only proves to me that actually at nearly all clubs the normal rules that owners apply in their businesses and made their fortunes are just ignored. RD is not alone on applying illogical financial thinking.  
  • @Athletico Charlton good call. Actually how they can put Spurs and Ajax in the same bracket financially is beyond me. Ajax really are one of the lowest budget clubs you could find in the knockout stages of the UCL, because the Dutch league really does not have much to offer in terms of TV revenue. 
  • Ajax apparently get £8m a season in tv money.

    Spurs last season earned £144m.
  • It’s not going to get any better either for any football club other than an elite seven or eight clubs. Football finances have been allowed to be so skewed towards the Premier League and even then the ridiculousness of how clubs need to spend doesn’t guarantee survival. Average Premier League players cost more and get paid more than the budgets of every league two club combined. Football as is will not be sustainable and the PL won’t be offering a helping hand to anyone out side their greed club. Football as we have come to know it in this country is due for someone to press the reset button and when it happens I fear that we will lose a lot of very famous clubs.
  • Ajax apparently get £8m a season in tv money.

    Spurs last season earned £144m.
    That's less than half the parachute payment in the English second tier :-(
  • Ajax apparently get £8m a season in tv money.

    Spurs last season earned £144m.
    That's less than half the parachute payment in the English second tier :-(
    And Sunderland still managed an operating loss of over £20 million last season.  Its mental and has to change 
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