Why Wigan Warriors lost £1.4m last year

Discuss all things Wigan Warriors. Comments and opinions on all aspects of the club's performance are welcome.
josie andrews
Posts: 25000
Joined: Sun Jun 10, 2007 10:17 pm
Location: Wigan

Why Wigan Warriors lost £1.4m last year

Post by josie andrews » Sat Sep 07, 2019 12:49 am

Wigan Warriors reported an operating loss of nearly £1.4million last year.

The club's two-game tour of Australia - which finished "significantly below budget" - was blamed for a large part of that shortfall, according to accounts filed at Companies House.

The £1.4m loss is nearly £1m more than 2017 and, indeed, the same amount lost over the previous three years combined.

Although Wigan stormed to Grand Final glory in Shaun Wane's final year, turnover dropped by £600,000 to £6.5m.

But the club's expenditure crept towards £8m, leaving them with a deficit of £1.4m and a net loss of £1.2m, after tax.

Chairman Ian Lenagan, who owns 89 per cent of the club through Lenagan Investments Ltd, has once again plugged the gap from his own funds.

Wigan's average attendance dropped from 13,983 to 11,708 last season, the last under the Super-8s structure. And the report, filed this week, says they took a financial hit from their decision to stage two matches in Australia.

Wane's side faced Hull FC in front of 12,416 fans in Wollongong - a ground-breaking first Super League match staged outside of Europe. They then played Souths in a double-header friendly the following week, with 18,721 watching the match in Sydney.

Wigan made it clear in advance they hoped to make a profit from the venture, but the report says "the attendance for the Sydney game was significantly below budget (leading to) a disappointing financial outcome."

The report reveals Wigan received transfer fees of £175,000 - thought to be for John Bateman's move to Canberra - and also sold the Lotto shop for £120,000.

The number of players and coaches increased by three, to 71, while the administrative staff was down one to 29, and the amount paid in wages went up four per cent.

Directors received £109,465 remuneration, nearly double the figure of the previous year, and the cost of renting the DW Stadium was £295,000, similar to in 2017.

The independent auditor, operating under more stringent requirements, points out Wigan is reliant on Lenagan Investments Ltd. .

Wigan's Morgan Smithies has come through the ranks this year

John Fairhurst wrote: "The existence of operating losses, working capital requirements and reliance upon Lenagan Investments Limited indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern."

Wigan have recently moved to a training base at Robin Park and the report reveals their former site, at Orrell's Edge Hall Road, is valued at £2.2m.

They have a 25 year renewable licence to use the Latics-owned DW Stadium at rates determined by match income.

Warriors' finance director David Moore wrote in the report: "The board recognise that the heightened levels of operating losses incurred in the year do not represent a sustainable position for the club.

The board are committed to significantly reducing the level of the operating loss for 2019 and beyond."

Wigan have signed two marquee players for next season - George Burgess and Jackson Hastings - but still intend to lower overall wages which, combined with a projected rise in attendance, would reduce the deficit.

Lenagan has never shied away from the fact he wants to break even or make a profit, which would be reinvested into the club he has owned for 12 years. He is joined on the board by executive director Kris Radlinski, Dr Chris Brookes, Winston Higham and Moore.

https://www.wigantoday.net/sport/why-wi ... -1-9981170
Anyone can support a team when it is winning, that takes no courage.
But to stand behind a team, to defend a team when it is down and really needs you,
that takes a lot of courage.

User avatar
Mike
Site Admin
Posts: 5377
Joined: Sun Dec 23, 2018 6:54 pm
Contact:

Re: Why Wigan Warriors lost £1.4m last year

Post by Mike » Sat Sep 07, 2019 12:55 am

Who budgeted for significantly more than 20000 people showing up to the Sydney game?

Sent from my Pixel 3 using Tapatalk


DaveO
Posts: 14345
Joined: Mon Sep 30, 2002 5:32 pm

Re: Why Wigan Warriors lost £1.4m last year

Post by DaveO » Sat Sep 07, 2019 12:58 am

Well that is pretty crap and while I am grateful IL has plugged the gap, it’s only as big as it is because his hair brained idea of taking a game to Oz. It must have badly failed to put losses up that much.

The fact marquee players have been signed hopefully means he’s realised he needs to raise income from the home fans and growing revenue locally. Fans need to respond to the investment in players.

One positive is the lease for the stadium is a pittance.

fozzieskem
Posts: 2941
Joined: Sat May 14, 2016 10:54 am

Re: Why Wigan Warriors lost £1.4m last year

Post by fozzieskem » Sat Sep 07, 2019 6:35 am

The sheer stupidity of the Oz game certainly came home to roost that’s for sure,you piss people off at your peril,it wasn’t forward thinking or visionary it was bloody stupid.

That said thank god for Lenegan plugging the huge gap i don’t know where the club would be,and as we all know he’s put up for two marquee players and other signings for next season so hopefully the books will look much better.

Mickw
Posts: 225
Joined: Thu Jan 31, 2019 11:22 pm

Re: Why Wigan Warriors lost £1.4m last year

Post by Mickw » Sat Sep 07, 2019 6:45 am

Well last night there was barely 7 and half thousand on, forget the 10,800 .
The so called fans aren't watching the team,and it been similar all season.

Woody1989
Posts: 156
Joined: Mon Nov 18, 2013 11:16 pm

Re: Why Wigan Warriors lost £1.4m last year

Post by Woody1989 » Sat Sep 07, 2019 8:56 am

Books make for sorry reading. I'm hoping that the investment in players for next year increases income from tickets and merchandise. Also selling the Orrell facility should help. The club can't go on making losses like this, Lenagan won't plug the gap forever.

ancientnloyal
Posts: 13947
Joined: Tue Apr 11, 2006 10:33 pm

Re: Why Wigan Warriors lost £1.4m last year

Post by ancientnloyal » Sat Sep 07, 2019 9:19 am

The money making trip to Aus worked then! Directors bonuses went up 100% though so not all bad for the white-haired ones
Rugby, Family and Strava... that’s about it for me tbh

I’ve seen Ellery Hanley, Martin Offiah and been dragged to Wigan games since memory... absolutely lucky!

ancientnloyal
Posts: 13947
Joined: Tue Apr 11, 2006 10:33 pm

Re: Why Wigan Warriors lost £1.4m last year

Post by ancientnloyal » Sat Sep 07, 2019 9:21 am

Surely being a rich owner means spending cash... like Man City... or else we’d have Betty from the Chippy running the Club wouldn’t we.
Rugby, Family and Strava... that’s about it for me tbh

I’ve seen Ellery Hanley, Martin Offiah and been dragged to Wigan games since memory... absolutely lucky!

Caboosegg
Posts: 1657
Joined: Tue Oct 14, 2014 4:51 pm

Re: Why Wigan Warriors lost £1.4m last year

Post by Caboosegg » Sat Sep 07, 2019 10:31 am

I can imagine it will read bad this year most attendances showing around 10k.

It amazes me that when the club say we are going to cut back due losses that Wigan fans choose to just stop going instead of rallying around the club.

If we are making loses like that year on year i can imagine these big names being a last ditch attempt to save the club.
RL's biggest issue is the constant negativity of its own fans.

support verb [ (ENCOURAGE)

"to agree with and give encouragement to someone or something because you want him, her, or it to succeed"

DaveO
Posts: 14345
Joined: Mon Sep 30, 2002 5:32 pm

Why Wigan Warriors lost £1.4m last year

Post by DaveO » Sat Sep 07, 2019 11:19 am

Caboosegg wrote:I can imagine it will read bad this year most attendances showing around 10k.

It amazes me that when the club say we are going to cut back due losses that Wigan fans choose to just stop going instead of rallying around the club.

If we are making loses like that year on year i can imagine these big names being a last ditch attempt to save the club.
It doesn’t take much to lose fans. I think there is a combination of factors involved. Some the clubs fault others not.

I know IL has blamed the super 8 format for falling gates and I don’t disagree but I still don’t think the format is sorted. The fact the GF is the be all and end all of the season still leaves some fans thinking the league games are a bit pointless and so they pick and choose which games to go to.

Another one out of the clubs control is when the fixtures are played. The Thursday night games can’t help.

The mid season break we have due to pitch maintenance is a serious issue. It not only means people get out of the habit of going but we have a lot of home fixtures in the school holidays when families are away. Inevitably losing one or two of your season ticket home games is not going to encourage people to buy them.

On the club side I am convinced fans got really fed up with losing our best players when other clubs didn’t seem to and then seeing them re-signed crocked. That whole policy of IL’s fooled few and I think the attempt to make it sound like some sort of plan was seen through by the fans and so seen as condescending.

Then we have the on the road games to London and Oz which just baffled me from the outset and really annoyed the fans who couldn’t or didn’t want to go.

Until the recent signings recruitment looked being done on the cheap.

We have had the Edwards fiasco which again was badly handled by the club. A recurring theme throughout that and when we lost and re-signed players was the spin coming out of the club. Fans can see through it and don’t like it.

Finally despite successes in the GF there has been a perception of a steady decline in playing standards since about 2012 fuelled by the losses of players and lacklustre recruitment mentioned above.

All these things combine to turn fans off in my view.

Hopefully the club is now addressing those it can by canning any future on the road games and with better player recruitment. I hope IL is also doing his bit to try and sort the game out at SL level.

One thing that would help next season is a return to Wembley. We have been away far too long and a Wembley trip is usually a big money earner for a club.

Post Reply