By @LaticsOfficial

PHOENIX 2021 LIMITED PUBLISH ACCOUNTS FOR 2021/22 FINANCIAL YEAR ENDING 30 JUNE 2022

  • Accounts cover 2021/22 season, directly following Administration 
  • Statements show a loss of £7.7m after investment in squad and staff 
  • Chief Executive, Malachy Brannigan is available to answer more questions this evening at Fans Forum

Phoenix 2021 Limited, the registered company trading as Wigan Athletic Football Club, has published the financial results of accounts for the 2021/2022 campaign, with the period  ending 30 June 2022.

The financial results for the Club were delivered to Companies House and The EFL, in line with the footballing authority's reporting requirements for the Championship. It covers the period of our 2021/22 League One promotion-winning season in a year which was the Club's first full season after coming out of administration.

The Key Performance Indicators for the year include:

  • Turnover: £8.3 m
  • Staff Costs: £(13.0)m
  • Operating Loss: £(10.5)m
  • Profit on sale of players: £2.8 m
  • Net Loss before Tax: £(7.7)m
  • League Position: 1st
  • Average Attendance: 10,343

The financial statements show that the Club made an overall loss for the financial year of £7.7m. This loss was expected, given the investment from Phoenix 2021 Limited following the return to operations after administration. Phoenix 2021 Limited will continue to fund the future commitments as equity rather than debt. You can view our financial accounts for 2021/22 in full here. 

It was of course a hugely memorable campaign on the field, but there was a lot of investment and work off the field which saw Phoenix 2021 Limited help structure the Club on a more solid footing, operating in a near start-up environment. The period saw the playing squad grow from three recognised first-team players, to an addition of 18 more players which ultimately formed a promotion-winning squad. It was also a season where fans were able to return to stadiums following the restrictions of the COVID-19 pandemic which brought its own challenges.

In just over 12 months, the Club had been rescued from administration and survived relegation by a single point before being crowned Champions of League One and consequently winning promotion back to the Championship.

The 2021/22 season was unique and therefore any comparison of figures with the previous year’s accounts would not be a fair one.  

Commenting on the results as a whole, Club Chief Executive Malachy Brannigan said: “Firstly, I want us as a Club to be as open and transparent as we can to all our fans who have stuck with us every step of the way. The loss of £7.7m for the 12 months to 30 June 2022 illustrates the level of investment made by the Club’s owner, Mr Abdulrahman Al Jasmi, through his Gibraltar-based investment company Europa Point Investment Company Limited (EPIC), in focusing on the target of returning the Club to the Championship at the earliest opportunity.

“There are many factors that have contributed to the financial loss for the year reported. Significant ones include the gradual return of fans following the COVID-19 pandemic, the need to invest in all aspects of the Club from the playing squad and staffing levels, through to the infrastructure of the company’s various sites, as well as the rejuvenation of the Academy for the medium to long term viability of the Club.

“The Owner’s and Board’s view that the Club should be operated in a financially stable manner, has not altered since Phoenix 2021 Limited bought the Club from the administrators in March 2021 and in order to do so, funding beyond the revenue that is generated through normal business operations is needed. The results published are in line with those forecast at the start of the financial year and any subsequent decisions made during the reporting period.

“Given the multi-year nature of playing contracts, and the incentives placed in them based on divisional success, the financial results for the year ending June 2023 are forecast to show a significant increase in the operating loss made during this period although this will be very much dependent on the Club’s divisional status. On the assumption that the team will continue to be playing in the Championship, the 2024 accounts are expected to report a further loss, but reduced, in comparison to 2023, through a combination of increased income and reduced operating and staffing costs, with the trend of reducing losses in the future financial years.

“As with a number of clubs that have entered and successfully exited an administration process in recent years, there are a set of management parameters, set by The EFL and agreed to by the new ownership group, that Phoenix 2021 Limited and Mr Al Jasmi have to adhere to: the EFL closely monitor this situation on a regular basis and the Club has complied with each and every one of these parameters. Phoenix 2021 Limited and Mr Al Jasmi continue to commit to these parameters, which includes a commitment to fund the operational losses of the Club in line with the forecasts presented to the Board and the EFL.”

Supporters are welcome to ask any questions at this evening's Fans Forum when Chief Executive, Malachy Brannigan will be joined by Manager Shaun Maloney.