Wigan in Administration

MartinBWFC wrote:It can only end in tears for them.

I'm not so sure Martin.

They seem to have a billionaire Arab behind them who bought the club for his son-in-law to play with.

Let's see what other aces they may have up their sleeve to play before we write them off, so quickly.

They've signed six other players apart from Wyke - non who I've heard of admittedly - but they've been sign on 'frees' with five of them who played regularly last season for clubs in this division and all of whom finished in the top six last season, and the sixth player was signed from the Championship.

Seems they are going for experienced, solid players in their late 20s/early 30's and paying them big wages.

Then again one of the players they signed was Ben Amos and we all know what a stump he was when with us!

They still need at least another half dozen players to bring in yet I would think.

As long as we finish above them they can do whatever they like as far as I'm concerned!

Sluffy wrote:
As long as we finish above them they can do whatever they like as far as I'm concerned!

Hear hear

Hello, hello, things not going to plan it seems!

SPORTS AGENDA: Wigan's players are paid late for the second month in a row as stars and staff consider their futures...

- Wigan owner Talal Al Hammad blamed the Queen's Jubilee for the delay in June
- This month player salaries are late again, with issues with foreign banks cited
- Al Hammad [owner] has made a promise that money due on Friday will land on Monday
- The Latics are yet to sign anyone this summer after promotion from League One

When he is not organising impromptu, showy Q&A sessions on Twitter and criticising journalists for shining a light on the ludicrous decision to hand the World Cup to Qatar, Wigan Athletic owner Talal Al Hammad might want to sort the wages out for his players.

Agenda was informed that salaries were paid late last month by the Bahraini businessman, with the 'Queen's Jubilee' blamed for the delay.

This month they were late again, with 'issues with foreign banks' cited, amid a promise that monies due on Friday will land on Monday.

On Saturday, chief executive Mal Brannigan asked Agenda if 'there was anything we can do to keep the story out'. On Sunday night, a club-sponsored version of events with soft quotes from Brannigan on the issue appeared on the local paper's website claiming that the club's financial health was 'strong and stable'.


This is a worrying development that comes on the back of a summer in which the Latics have failed to add any new bodies to their squad as they return to the Championship.

Alarm bells are ringing once again at the DW Stadium with players and staff known to be considering their futures. Chief financial officer Richard Bramwell has also stepped down from the board of directors.

The club add that they signed a significant number of players last season and did not expect to be active in the summer window. One to watch.

https://forum.boltonnuts.co.uk/t21133p720-wigan-in-administration?highlight=wigan#428071


Seems that £4.75m pumped in as share equity on 29th June [total now £8.5m all paid up].

Wigan made loss of £600k on last accounts but since then have brought in a complete new team on apparently silly wages.

I would imagine they made a significant loss on last seasons account and I'm guessing the money has been pumped in because they aren't earning any revenue over the summer.

The new owner seems to have deep pockets - and if the club is just a plaything for his son/son-in-law (not sure which it is?) then probably nothing to worry about.

Would be fun to watch them struggle after buying the league last season by chucking silly money at it.

https://find-and-update.company-information.service.gov.uk/company/13161421/filing-history

Absolutely gutted for them.

Not.

My thoughts at this difficult time for the Wigan branch of the football family are with the poor, long suffering Wigan fans. Yet again they appear to have been shat on from a great height by a dubious foreign owner.

I think about them all the time and I just can't stop fuckin' laughing.  

It's the feelgood story of the week.  

The mood amongst Wigan fans in the chat rooms is predictably "I don't want to believe it could be happening again" and of course there are the worriers and the happy clappers going at each other when in reality neither know what's actually happening behind the scenes.
Obviously there are other signs apart from the wages issue - the lack of signings for example - but either way it's going to be a good watch.

Odd things still happening at Wigan!

Further to my post in July about late payment of wages, the same thing has happened once more.

Wigan have since gone on an abysmal run of results (remember when Wheater and the rest stopped trying when they weren't getting paid?) so much so that their manager Liam Richardson (Bolton old boy) was at risk of the sack...

...but instead the owner gave him a new three year contract.

Three weeks later...

Wigan sack boss Leam Richardson
https://www.dailymail.co.uk/sport/football/article-11411743/Wigan-sack-boss-Leam-Richardson-following-eight-game-winless-run.html

Yes, not looking good for Wigan Sluffy and however much I dislike the club you have to feel sorry for the majority of the fan base who must wonder what is going on and once again fear the worst? I must admit to being surprised that someone took them over last time but they seemed a decent ownership and got them promoted deservedly last season but they didn’t invest in the summer in new players and that set alarm bells running I think? Giving Richardson a new 3 year contract then sacking him weeks later sound mad but surely there must have been more to that than meets the eye. Time will tell I suppose but if I was a Wigan fan I’d be very, very concerned.

Sluffy wrote:Kolo Toure: Wigan Athletic sack boss after no wins from nine games in charge

https://www.bbc.co.uk/sport/football/64361824

Maybe they'll get Coyle to return.

boltonbonce wrote:

Sluffy wrote:Kolo Toure: Wigan Athletic sack boss after no wins from nine games in charge

https://www.bbc.co.uk/sport/football/64361824

Maybe they'll get Coyle to return.

Something is clearly wrong at Wigan, can't put my finger on what it is though?

On the surface they seem to have a wealthy owner, whose son/son-in-law (I've never been certain which one he supposedly is?) is the club Chairman and apparently big tweeter about Wigan.

They've appointed three so called experienced football experts to run the club and spent big last year to go up as champions.

Since then though they've hardly spent a penny on new players in the summer or in this window, missed paying the wages on time on three separate occasions, gave their manager a new 3 year contact then sacked him 3 weeks later (and all his backroom staff), appointed Toure (after his own brother turn down the job!), gave him a three and a half year contract - even though he'd never managed anywhere else before - and have now just sacked (and all his backroom staff as well!)him after two months!

So two managers contacts to pay up for a total of six and a half years plus at least four backroom staff on whatever the lengths of contracts they were on - plus paying the wages for the new manager and the backroom staff he brings with him that must put a huge hole in their financial plans I would have thought?

Something isn't right somewhere - it seems more like a pantomime than a football club.



Oh yes it is!

The strange goings on at Wigan continue as it now seems that the owners a Gibraltar based company (EUROPA POINT SPORTS HOLDINGS LIMITED)...

...this is all that I can seem to find out about them (?)  -

https://www.datocapital.com.gi/companies/Europa-Point-Sports-Holdings-Ltd.html

...have issued £8m worth of new shares (presumably bought them themselves?)



the Wigan Athletic holding company is called Phoenix 2021 -

https://find-and-update.company-information.service.gov.uk/company/13161421/filing-history


So in simple terms since Wigan was bought out of Admin, they have had loads of money, then had NO money (wages not paid on time for three separate months (and an EFL Sanction*) and NO investment in players since the initial takeover) and now loads of money again!

* https://wiganathletic.com/news/2023/january/19/wigan-athletic-and-efl-reach-agreed-decision-on-sanctions-relating-to-late-payment-of-wages/





Whatever next?

Thanks Sluffy.

I received notice of the share issue yesterday but didn't bother looking any further. The EFL statement though is interesting and may be an indication of the shape of things to come. i.e. 'owners' required to deposit future wages.

You can get to see EPIC's accounts (Phoenix 2021 owners) on payment of 49 Euros. I don't think I'll take up the offer but I expect the beneficial owner is the Bahraini bloke. Possibly the same one that was allegedly interested in the Whites pre-FV.

Phoenix 2021's 2022 accounts are due at Companies House no later than 31 March 2023. Place your bets on who will file first.

I had a bit of a brainwave and thought I wonder if Gibraltar had their own version of Companies House - and indeed they have!

Unfortunately you still have to pay to search their records though (an electronic search costs £10) which of course I won't be doing (I'm not that interested in Wigan's finances!).

https://www.companieshouse.gi/forms.html

I am bemused though as to what on earth they are doing as it seems they are either loaded or broke and seldom in-between the two!

Obviously there must be a reason why they are though - I wonder if they will steady the ship now or carry on as they have been doing?

Time will tell.

Wigan's accounts are out for the year up to the 30th June, 2022 (last season when they went up as Champions).

Headlines are that they made a £8m loss on the year (it was over £10m but they got a windfall of £2.8m from the sell on of Dan Burn from Brighton to Newcastle).  Their net trading loss of £8m probably explains the reason why an additional £8m of shares were issued recently - see previous posts above) and player/and staff wages were £13m.

(Note to Bob - the £2.8m of income from the Dan Burn sell on is shown as 'sale of intangible fixed assets' (page 12) - I don't think it helps explain anything about FV's valuation on their intangible fixed assets are though - or even what they are!).

A couple of snippets I picked up were that they received £1.2m from the PL and £800k from the EFL in the year - so I assume BWFC and all other clubs in our league last season will receive the same too? (page 20).

Accounts are here -
https://find-and-update.company-information.service.gov.uk/company/13161421/filing-history

And Wigan Chairman's comments here -
https://wiganathletic.com/news/2023/march/08/phoenix-2021-limited-publish-accounts-for-2021-22-/

The standout comment (considering that they currently look doomed to be relegated this season) is that they are budgeting for an even greater trading loss for the current seasons accounts (up to 30th June, 2023)

“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".


Interestingly they are holding a public Q and A tonight - I somehow can't imagine Sharon holding a public Q and A when our accounts are published...

We'll see though.

Curious things happen at Wigan today!

Reports of wages not paid.
Sales of next seasons, Season Tickets halted.
Chairman (owner), blocks his Twitter account...

Watch this space as they say...!


Kendrick is Wigan's version of Iles -




If you remember we could not issue ST's when in Administration because it was taking on new creditors without any means of paying them back...

Just saying like...




Chairman pledges to be open and available...

...or at least he used to say that!



PS - I've not cocked up with posting their owners twitter account, it is just that because he's 'locked' it, I can't show it on here but you can just click on the link and you can view it over on Twitter.

Confirmed - wages not paid!



WIGAN ATHLETIC CONFIRM DELAY IN MEETING WAGE OBLIGATIONS

- Wigan Athletic confirm delay in wage payments after liquidity issues
- EFL aware of current situation and the Club has taken steps to rectify situation moving forward
- Club emphasises financial strength of ownership group who are committed to the Club.

Wigan Athletic can confirm that there has been a delay in meeting wage obligations.

Whilst responding to media speculation is not typical of the Club's standard approach, we would like to assure stakeholders that this is a temporary matter which is promptly being resolved.

The Club has been disrupted by recent liquidity issues and this continues to be the case, hence the current situation. The Club wants to emphasise that the financial strength of our ownership group remains robust and they are committed to supporting the Club.

The EFL is aware of the current situation and the Club will continue to work closely with them to ensure that all outstanding wage amounts are paid. The Club has already taken steps to rectify the situation and will ensure that wage payments are made promptly going forward.

It is hoped that this statement does, at the very least, clarify the current funding situation, rather than question the financial strength of the Club.

Wigan Athletic understands the sensitivity of this matter and would like to thank staff, players and fans for their patience. The focus is now firmly on Saturday's Championship fixture with Burnley and the remainder of the Championship season.

The Club will make no further comment until it feels necessary.

Thanks Sluffy. I have about 30 clubs on my Companies House watch list, including Wigan, but I don't spend much time on them tbh. It is interesting to compare and contrast though.

 Wigan's overall numbers don't really come as much of a surprise but they have put them in the public domain more quickly than most and they do seem to have been reasonably open in the presentation. Under pressure? Maybe.

The additional profit on the sale of Dan Burn is something of a one-off but the disclosure is quite prominent unlike the gain FV realised when the Eddie Davies Trust agreed to settle for £2.5m less than FV had previously agreed to pay. I expect you will remember that FV included this in ' Other Operating income' making it look like the 'Operating loss' was a lot less than it actually was in 2020/21.

FV have until the end of this month to file their 2022 accounts unless they can wangle another three months out of Companies House.

 Morecambe seem to have been able to do that. Its financial future seems uncertain but so too has MUCS Enterprises, Marcus Rashford's cash building operation.
  

The Chairman (the son in law of the owner, who apparently has been bought has his play thing(?)) has resurfaced and gives his side of the story -  NOTE: You need to click on the link shown in the tweet to open it up fully.



Their Chief Exec and the bloke who held a Q and A with fans just 24 hours previous to the announcement that the wages wouldn't be paid on time - speaks -

Mal Brannigan has moved to allay fears Wigan Athletic are in danger of a second administration in the space of three years.

The Latics CEO was speaking immediately after Saturday's 3-0 defeat at Championship leaders Burnley, which leaves the club rooted to the foot of the table.

It was also less than 24 hours after the club confirmed a 'delay in meeting wage obligations' for March, which leaves them in danger of being deducted three points by the EFL.

The development has left some fans understandably fearing the worst.

Brannigan, though, insists the situation remains a 'liquidity' issue - and not a lack of money that could put the club at risk.

When asked whether there was a possibility of the administrators being called in, Brannigan told Wigan Today: "I can't see that.

"I've been at other clubs where it's a lot tighter, especially from an asset-based perspective.

"This ownership group remains very strong from an asset-based perspective,

"I can't see administration."

Brannigan did concede the latest delay in the payment of wages would have come as a hammer blow to a fanbase still recovering from almost losing their club in 2020.

He also explained the timing behind the club's statement which confirmed the latest problem - which dropped shortly after midnight on Saturday morning.

"I know the club has faced some criticism regarding the timing of the statement," Brannigan added.

"We tried everything yesterday to make sure all of the staff were paid on time.

"But then we got to the practical and pragmatic point late on Friday where we knew it unfortunately wasn't going to happen, and we had to put out the statement to try and be transparent and say 'this is where the football club is currently at'.

"We held meetings with staff on Thursday, and we made everyone aware that there was going to be a potential issue with the wages, and they might not be in there for the weekend, but they would be in there next week.

"What we've tried to do all along is to be as open as possible about the situation - to let staff know, supporters know, people who care about the football club know about what's happening here.

"We know that it's damaging, but it's not deliberate.

"As the statement says, it is down to a liquidity issue rather than the financial strength of the ownership group.

"And I think that is a very important distinction to make.

"We have an ownership group that is financially very strong.

"The way they work sometimes regarding their liquidity has an impact on the football club.

"But we have to recognise here the overall financial position is very strong and, from the conversations I've had with the chairman, we have an ownership group that cares about the football club, and is committed to the football club."

Latics, who have 10 games to save themselves, and a six-point gap to safety to overturn, are back in action on Tuesday night when Coventry City visit the DW.

https://www.wigantoday.net/sport/football/wigan-athletic-ceo-addresses-administration-fears-4060619



Fwiw, I wonder if having to find 2.25 times the wages this month - the normal wages plus the plus an extra 1.25 the wages to be given to the EFL as a contingency of not being able to pay future wages on time - is the cause of the liquidity problem?

It would be quite ironic if it did!

How Charming!

I've been following the ongoing saga at Wigan (latest the players have still not been paid) on the Wigan Speyk Forum and could see that one or two of them were getting into a muddle about some of the accountancy stuff - for instance one of them misunderstands what the audited accounts statement that Wigan will make a greater loss in the following years account (to June 23) and a reducing loss the falling years (June 24) - he seems to thing the June 24 accounts cover this year - it doesn't.  Also another thinks that transfers on, of former Wigan players, will benefit the owner of Wigan, as he bought it separate to the club - he's wrong too - as the clubs accounts clearly show money received from the sell on of Dan Burns to Newcastle in the June 22 accounts).

I thought I would register on there (under the name of Bolton Nuts) and help clear up their misunderstandings.

I register ok - but it seems the Admin of the Wigan part of the forum had to 'approve' me before I could post.

He didn't!

I guess he probably thought I was a Bolton Troll and banned me out of hand!

Hey ho!

Their loss - there was several other things I could have put them straight on such as why the £8m worth of loans were rolled into equity and why that probably has given Wigan a lifeline to survive by doing so.

As the two who seemed the most clued in about the accounts are the ones who I was attempting to go on to their site in the first place to point them in the right direction of the very two issues I've mention earlier - then I don't give them (the good folk at Latics Speyk) much chance of understanding where all this is going for them and why.

Luckily for them ignorance is bliss.

(I guess it also shows what they think of Bolton fans - even the ones trying to help them!)