PHOENIX 2021 LIMITED PUBLISH ACCOUNTS FOR 2022/23 FINANCIAL YEAR ENDING 30 JUNE 2023
- Accounts cover 2022/23 season, when the team was competing in the EFL Championship
- Statements show a significant financial loss of £13.4m
- Underlying loss before write off of owner loans was £17.5m
- £2m costs incurred in termination costs for two Player Management teams and Executives, much of this payable in the following financial year and being paid by the new ownership group
Phoenix 2021 Limited, the registered company trading as Wigan Athletic Football Club, has published the financial results of accounts for the 2022/2023 campaign, for the year ending 30 June 2023.
The financial results for the Football Club have been delivered to Companies House and The EFL. It covers the period of our 2022/23 season competing in the EFL Championship which ended in relegation to Sky Bet League One. The full accounts will shortly be live on Companies House to view in full here.
The Key Performance Indicators for the year include:
- Turnover: £15.9m
- Staff Costs: £23.2m
- Operating Loss: £13.7m
- Profit on sale of players: £0.4m
- Net Loss before Tax: £13.4m
The financial statements show that the Club made an overall loss for the financial year of £13.4m. This loss was as budgeted and expected, except for additional costs of £2m for termination costs of two Player management teams and Executives.
Commenting on the financial results and future plans, Club Chairman and Interim Chief Executive Ben Goodburn has added the following update:
Our staff, players, loyal supporters and wider stakeholders have endured a turbulent few years and I firstly want to thank everyone for their resilience during such a difficult time.
The 2022/23 season was disappointing on and off the pitch, with relegation from the Championship, a number of points deductions, non-payment of staff and player wages under a previous ownership and the underlying loss of £17.5m is the largest published loss in the history of the Football Club.
During this period, HMRC also issued a winding up order, and the Football Club sought significant financial help.
Mike Danson purchased the Club in June 2023 and cleared all amounts owed for wages and to HMRC.
We are ambitious for Wigan Athletic, but first, we must be realistic about the challenges we face as we continue to work to bring stability to the Football Club. Lessons must be learnt from the past if we want to be sustainable for the future.
In the short term, significant owner funding will still be required to help ensure the debt inherited is manageable. The Football Club has for too long relied on significant owner funding to achieve short term footballing success. This approach has resulted in catastrophic consequences for the Football Club on two occasions.
There are many factors that have contributed to the financial loss for the year reported. The level of player wages paid was clearly unsustainable and caused significant financial distress – some of which, we are still trying to manage.
Ensuring that the Club is sustainable is not just about reducing costs, we need to grow both matchday and non-matchday revenues.
The Heatable Academy is a key pillar in ensuring the long-term sustainability of the Football Club. We have seen this season the valuable contribution of Academy graduates to the first-team squad with 42% of all minutes coming from Academy players, which is the highest percentage across all four divisions.
Following the removal of the transfer embargo ahead of the summer window, player trading will provide us with greater scope to identify, recruit and nurture young footballing talent and increase the value of the playing squad.
The Club continues to be overseen by myself as Chairman and Interim CEO, along with the Legal Board, which is underpinned by a Technical Board and an experienced senior management team. This is detailed in the Club's previous update here.
Wigan Athletic and Wigan Warriors staff continue to work together with our new ticket provider to ensure both clubs transition quickly to our new ticketing system, which will shortly be complete. I would like to echo the Ticket Office’s apologies to fans who have been frustrated during the interim period, but we remain confident the full Ticketmaster Sport platform will be the first step to ensuring a smoother customer experience for everyone.
Once the full Ticketmaster system is live, and after implementing feedback from supporters, we will then be in a position to launch our new Future Fund scheme which will continue to help us fund the next generation of Latics stars. Season Tickets for the 2024/25 season will also soon be available to purchase once the new ticketing platform is live.
The launch of the Club's first official Wigan Athletic Women’s team has been warmly received. Enhancing football opportunities for women and girls in the town is a key priority of ours, and we have made great progress over recent weeks in building the foundations for a successful team to take the field next season.
Finally, I know you will continue to support Shaun Maloney and our players as we aim to finish the season in the strongest possible position.
Thank you for your continued support.