Premier League soccer team Bolton Wanderers’ annual loss more than doubled to 35.4 million pounds ($56.8 million) on increased investment in its playing squad and restructuring costs.
The previous year’s loss was 13.4 million pounds. Sales for the northwest England team rose 3.9 percent to 54.4 million pounds, according to a filing for the year to June 30, 2010. Cost of sales rose 26 percent to 76.5 million pounds as the club spent about 15 million pounds on new players.
Restructuring accounted for 4.2 million pounds of that cost figure, while net debt rose to 87.5 million pounds from 58.4 million. The company said its projections showed a shortfall in the current level of cash-flow facilities.
“The directors are currently in discussions with potential lenders in order to provide the company with adequate working capital facilities,” it said.
The club’s owner Edwin Davies has provided a short-term loan from his Moonshift Investments Ltd. to meet day-to-day requirements. Moonshift won’t demand repayment before 12 months, the accounts state.
Bolton Chairman Phil Gartside today said the team has now agreed on new banking facilities with Barclays Plc. Much of the team’s debt is to Davies, a local businessman with “deep pockets,” Gartside said.
“There have been no indications from him, and I’ve known him 20-odd years, that he wants to recoup his money in the near future,” he said in an interview.
The club’s finances are likely to be boosted by player sales, according to Gartside.
“We are not a selling club but we are a trading club,” he said. “One of the problems we’ve had over the last three or four years is that we’ve not done much trading.”
The club’s costs will be further reduced when it releases out-of-contract players at the end of the season. Gartside said the club tried to sell some of its roster in the last off-season but couldn’t find any takers.
“If you took four or five players out of the squad you have probably got eight million (pounds) of salaries that you wouldn’t need,” he said.
Bolton finished 14th in the 20-team Premier League last season and is eighth this season after 11 games. The team plays at Everton tonight.