Club Finances released

[Arthur_Itis]

Just been reading about the strife at Charlton, no matter what our thoughts on current or previous owners it appears we are still better off than many.

https://talksport.com/football/efl/...isis-majority-shareholder-rows-chairman-club/

 

[pies'r'us]

The previous accounts for a Championship season had the large Yanic sale, plus parachute money and likely a smaller wage bill than we have now.

I was aware of the figures you quote but the 'Yanic' figure isn't net, we had made several player purchases which reduced that figure greatly. Also, I was aware of the the parachute payment money.

Why would you think we would have a substantially increased wage bill? Ever heard of 'cut your coat...'?

But there are other factors which could effect the financial performance of the club.

Your assertion doesn't consider that we may have had an increase in revenue to offset losses. You may recall at the outset of IEC's tenure, they commented about increasing revenue through advertising, corporate, sponsorship, stadium events etc. So, who would have know the finals?

The salient factor which led to my present disappointment was the £5.6m 'profit' contributed by us to IEC's accounts (30/06/2020). That is a fact and which was well known about. In view of that, I guessed that, as per their earlier statements about getting us into the premier league, they had made 'investments' in us by way of sponsorship or other ligitimate means. Their 'investment' turns out to be a loan which is detrimental to the balance sheet. I recall I made a cynical comment on this forum at the time as; 'did they mean northern premier'. Now, that may be nearer the reality. The accounts show a decrease in sponsorship etc. and no mention of activity and in fact they state that they cannot guarantee continued financial support.

These accounts show to me a poorly led business and that their costs controls are wayward and overall, a small group of people have benefited from the take over.

 

[You are my sunshine]

When I first saw that link Arthur put up last post but one,for a second I thought,bloody hell they have an isis majority shareholder in charge at Charlton!The current financial row would then be the least of their worries!
The EFL haven't got a great reputation recently with Dale at Bury and Anderson at Bolton,but this would definitely be a new all time low.

 

[daleks.at.the.monaco]

I wonder why you were expecting a higher loss when our loss for last season in Championship (16/17) was only £600k and especially in view of the following

IEC purchased a debt free business which included tangible and intangibles.

Burns and Griggs were sold for £6.9m and EFL/prem money totalled approx £7.58m. There were no substantial signings mid season 18/19 and unless my memory is failing; I don't recall any prior June 30 2019. And not to forget that IEC accounts (same period) show £5.5m profit provided by Latics.

I have read the full accounts and I was left feeling sick. As well as showing the financial figures, it portrays in some parts how the club is being managed/financed.

I note some substantial increase in running costs. For example;

Staff/players salaries £19.4m up from £11.7m (2018 L1) and £16.6m (2017 championship)

Agent Fees £1.1m up from £452k

Directors remuneration up by 300% with highest paid director receiving £145,000 (higher than Prime Minister and not bad for a corporate inexperienced and business failure).

The (newly appointed) auditors remuneration; £62.5k up from £22.8k

Other major points of concern;

Monies from owner of £10m are recorded as loans not gifts etc.

Sponsorship down £150k from previous year in L1.

I don't see any income from Warriors.

Creditors (money owed) falling due within one year; £29.2m within that figure is £3.3m owed for players.

I don't think this is what IEC were expecting and their present position and comments are understandable.

Warriors money would be to the stadium company not the footy club

 

[Jonnysking]

Warriors money would be to the stadium company not the footy club

Lets face it, the amount the cuckoos pay would hardly make a dent in it anyway.

 

[Come on Wigan]

Latics are engraved on the heart of DW...if they were of no interest to him why would he continue to follow us ?.... Dave's now an elderly man who did more than his share regarding dipping his hand in his pocket. He will forever be a God in my books.

I should have said achieved all he set out to do and more, not of no interest.
Of course what he did was amazing for the club and as a consequence good for Wigan as a town. The Stadium, the publicity it has given the town, as you will be aware when travelling to different countries most people have heard of Wigan becuase of Latics.

And to think some people on here was still bringing up the blood war chest.

 

[Come on Wigan]

We will never be profitable while we have an apathetic public and " fans " who threaten not to renew season tickets at the drop of a hat.

I long for Springfield Park with about 5k diehards. this ground we have was always too big...anybody not committed should just do one.

I loved Springfield Park, the shit hole it was. And I agree the stadium is too big but it would have been a shame to miss out on building a decent sized one.

If he had built 10000 seater and we got bigger than that I very much doubt it would have been made bigger.

You never know one day we may fill it again

 

[Arthur_Itis]

I've stumbled across a couple of (translated chinese) web pages which make (for me) uncomfortable reading.
I'm not sure how much of this has been reported before on here so apologies if I'm rehashing old news, I'd certainly heard the suggestion that IEC had sold us due to not getting to the prem, but to see it in writing was a little disconcerting.
Anyway, this snippet also rang alarm bells, although I'm no corporate lawyer and so could be misinterpreting things.

International Entertainment (01009-HK) announced that on February 14, the company entered into a sale and purchase agreement with Next Leader Fund, LP (Chairman Cai Zhaohui indirectly holds part of the equity) as the buyer. According to this, the company Disposal of the entire issued share capital of wholly-owned subsidiary Newworth Ventures Limited at a consideration of £ 17.5 million (equivalent to approximately HK $ 175.35 million).

Newworth Ventures Limited holds the Wigan Athletic team and 3 properties in the UK, some of which are used for clothes, warehouses, gyms and offices.

The company pointed out that the club owed the group about 25.77 million pounds (about 258 million Hong Kong dollars), which was the daily working capital injected previously. After the transaction is completed, the club must continue to provide funds to maintain its daily business operations. It is expected that after the transaction is completed, the company's net proceeds will be approximately 172 million yuan, which is intended to be used as general working capital of the group and any potential investment opportunities that may arise.

 

[pies'r'us]

Warriors money would be to the stadium company not the footy club

I was mistakenly under the impression that the various companies would be amalgamated after the takeover but they remain as per DW ownership so yes, you are correct. This means that, like the Warriors, we are lodgers paying a percentage of attendace basis.

 

[Come on Wigan]

I've stumbled across a couple of (translated chinese) web pages which make (for me) uncomfortable reading.
I'm not sure how much of this has been reported before on here so apologies if I'm rehashing old news, I'd certainly heard the suggestion that IEC had sold us due to not getting to the prem, but to see it in writing was a little disconcerting.
Anyway, this snippet also rang alarm bells, although I'm no corporate lawyer and so could be misinterpreting things.

International Entertainment (01009-HK) announced that on February 14, the company entered into a sale and purchase agreement with Next Leader Fund, LP (Chairman Cai Zhaohui indirectly holds part of the equity) as the buyer. According to this, the company Disposal of the entire issued share capital of wholly-owned subsidiary Newworth Ventures Limited at a consideration of £ 17.5 million (equivalent to approximately HK $ 175.35 million).

Newworth Ventures Limited holds the Wigan Athletic team and 3 properties in the UK, some of which are used for clothes, warehouses, gyms and offices.

The company pointed out that the club owed the group about 25.77 million pounds (about 258 million Hong Kong dollars), which was the daily working capital injected previously. After the transaction is completed, the club must continue to provide funds to maintain its daily business operations. It is expected that after the transaction is completed, the company's net proceeds will be approximately 172 million yuan, which is intended to be used as general working capital of the group and any potential investment opportunities that may arise.

I'm sure this is IEC selling Latics to the Owner of IEC. So he doesnt have to tell the Hong Kong stock market every time he bails the club out.

This has been known about for ages.

 

[Stormin' Norman]

You never know one day we may fill it again

We?

 

[Hampton]

We?

- Are you coming back to help out ?

 

[pies'r'us]

I'm sure this is IEC selling Latics to the Owner of IEC. So he doesnt have to tell the Hong Kong stock market every time he bails the club out.

This has been known about for ages.

Why are you speculating when IEC have already provided their reasons for selling. But in any event, quoted companies do not have to inform the market when they make loans to a subsidiary.

 

[Arthur_Itis]

I posted the extract from the translated article above because although I'd heard about the reasons for IEC selling, I hadn't seen it in writing anywhere, but mainly because I hadn't seen anything before which highlighted that Wigan Athletic football club owed 25 million (from loans) to IEC and therefore presumably to the new owners.
I've also not been able to find any evidence that Stanley Choi is a shareholder / member in the Next Leader Fund, although I did find various other names that I didn't recognise. This doesn't mean that he isn't, just that my research has been rubbish (probably).

I did also stumble upon this translation, which looks like a "media opinion" write up on the sale.

On February 14, International Entertainment (01009-HK) announced that the company intends to sell the entire equity of Newworth Ventures to Next Leader Fund, LP. .
Newworth Ventures' assets include, in addition to several properties, a Wigan Athletic FC. Although this club is not well known, it has a history of nearly ninety years.
.... some background on the club .....
The loan agreement in the sale announcement stated that the club owed £ 25.77 million to the company because the daily working capital had been injected into the sale company in accordance with the sale and purchase agreement after the acquisition was completed.
The cost of running a football club is obvious, even if it is just a British League team.

But International Entertainment's own performance has also been poor recently.
For the fifteen months ended June 30, 2019 (due to financial year adjustments), the Group's income and losses were 457 million (HK $, the same below) and 93.293 million yuan,
.....
The main reason for the loss was the change in the fair value of financial assets at fair value through profit or loss of approximately 51.8 million yuan, plus the operating losses of football clubs and on-site activities.

For international entertainment in a quagmire, running a club may no longer be glory, but more burdensome.....

Originally, International Entertainment wanted to expand its popularity by acquiring the British professional football team, and even took advantage of domestic policy support to develop the football school business. Who knows that the team's performance is poor, and its own business is also under pressure to sell its assets.
This can only make people sigh. If the main business is not strong, how can there be a foundation for developing outreach business?

 

[daleks.at.the.monaco]

I was mistakenly under the impression that the various companies would be amalgamated after the takeover but they remain as per DW ownership so yes, you are correct. This means that, like the Warriors, we are lodgers paying a percentage of attendace basis.

Footy clubs are structured in this way so that if they become bankrupt, the stadium assets do not go into the creditors pot, with the players having first call on any settlement.
Don't know what went on at Derby and Sheff Wed, or how they managed to sell their grounds, given the above.

 

[pies'r'us]

Footy clubs are structured in this way so that if they become bankrupt, the stadium assets do not go into the creditors pot, with the players having first call on any settlement.
Don't know what went on at Derby and Sheff Wed, or how they managed to sell their grounds, given the above.

I was simply stating a fact in that we are tenants. You missed the word 'some' from your assertion about ownership of stadiums. There are many clubs who do own their own stadium eg. Man Utd. Liverpool. Some have a freehold but the company is wholly owned by the football club such as Spurs. The DW is owned by a seperate company.

 

[pies'r'us]

I posted the extract from the translated article above because although I'd heard about the reasons for IEC selling, I hadn't seen it in writing anywhere, but mainly because I hadn't seen anything before which highlighted that Wigan Athletic football club owed 25 million (from loans) to IEC and therefore presumably to the new owners.
I've also not been able to find any evidence that Stanley Choi is a shareholder / member in the Next Leader Fund, although I did find various other names that I didn't recognise. This doesn't mean that he isn't, just that my research has been rubbish (probably).

I did also stumble upon this translation, which looks like a "media opinion" write up on the sale.

On February 14, International Entertainment (01009-HK) announced that the company intends to sell the entire equity of Newworth Ventures to Next Leader Fund, LP. .
Newworth Ventures' assets include, in addition to several properties, a Wigan Athletic FC. Although this club is not well known, it has a history of nearly ninety years.
.... some background on the club .....
The loan agreement in the sale announcement stated that the club owed £ 25.77 million to the company because the daily working capital had been injected into the sale company in accordance with the sale and purchase agreement after the acquisition was completed.
The cost of running a football club is obvious, even if it is just a British League team.

But International Entertainment's own performance has also been poor recently.
For the fifteen months ended June 30, 2019 (due to financial year adjustments), the Group's income and losses were 457 million (HK $, the same below) and 93.293 million yuan,
.....
The main reason for the loss was the change in the fair value of financial assets at fair value through profit or loss of approximately 51.8 million yuan, plus the operating losses of football clubs and on-site activities.

For international entertainment in a quagmire, running a club may no longer be glory, but more burdensome.....

Originally, International Entertainment wanted to expand its popularity by acquiring the British professional football team, and even took advantage of domestic policy support to develop the football school business. Who knows that the team's performance is poor, and its own business is also under pressure to sell its assets.
This can only make people sigh. If the main business is not strong, how can there be a foundation for developing outreach business?

The final para hits the nail on the head.
IEC have been losing money for a number of years. The share price is down 69% this year. It was HK$2.25 2 years ago now 3 cents. It's turned into a basket case - practically worthless. I couldn't understand from the outset and stated then 'why would a loss making business buy another loss making business?

 

[Come on Wigan]

Why are you speculating when IEC have already provided their reasons for selling. But in any event, quoted companies do not have to inform the market when they make loans to a subsidiary.

You mean the only guys we could find? Thats what Whelan did sold us out to the only one's interested, after over 12 months of wrangling he couldn't wait to get rid!

Very odd post very illogical.
He sold us out he sold us in your term to the only one interested. So not to the highest bidder regardless of the lir intentions, or to his mate as a favour. I'd say that' would have been selling us out.
Couldn't wait to get rid, then you say a year of wrangling. That's hardly rushing things through

 

[pies'r'us]

Very odd post very illogical.
He sold us out he sold us in your term to the only one interested. So not to the highest bidder regardless of the lir intentions, or to his mate as a favour. I'd say that' would have been selling us out.
Couldn't wait to get rid, then you say a year of wrangling. That's hardly rushing things through

I supect 'Normans' assertions about IEC being the only suitor is correct and also, that DW was desperate to exit but they had agreed and published their purchase 'price' and other parameters in May 2018. The remaing time was spent obtaining the various 'permissions' - EFL, HK stock exchange, IEC shareholders and arranging finance.

 

[Come on Wigan]

I supect 'Normans' assertions about IEC being the only suitor is correct and also, that DW was desperate to exit but they had agreed and published their purchase 'price' and other parameters in May 2018. The remaing time was spent obtaining the various 'permissions' - EFL, HK stock exchange, IEC shareholders and arranging finance.

You are very kind to explain on his behalf, but what he or she said made no sense.

Some people on here talk and nonsense and they tend to be the most prolific posters and then shout people down when they have a different opinion. It is unhelpful and nasty. I can be contrary but always belive what i say. That is a positive thing unlike some who are just all mouth and no substance. One word could be moronic an other uneducated. That persons post is the latter