Relegation is never good news financially for any club, but it would pose special challenges at Bolton. The club is bankrolled by low profile Isle of Man-based owner Eddie Davies who made his fortune in kettle thermostats. All the club’s debt is essentially owned by him and he is there for the long term.
Relegation is never good news financially for any club, but it would pose special challenges at Bolton. The club is bankrolled by low profile Isle of Man-based owner Eddie Davies who made his fortune in kettle thermostats. All the club’s debt is essentially owned by him and he is there for the long term.
Nevertheless, the accounts for the year ending June 2011 showed a £17m rise in the debt of parent company Burnden Leisure to £110.6m despite a reduction in the net loss from £35.4m to £26.05m. The debt is serviced through paying five per cent interest on a loan of £99m from Moonshift Investments Ltd., a company in which Davies has a beneficial interest.
Although the club would receive parachute payments in the Championship, broadcasting revenue of £44.7m in 2010-11 would fall sharply. It would also be difficult to maintain a recent 16 per cent growth in gate receipts.
Twelve first team players are out of contract this summer which would save £10m in annual wages. However, that also means that there would be little coming in through transfer fees, although Gary Cahill whose contract also expires in June is set to move to Chelsea for £7m in the transfer window.
The club would welcome new investment and it has a strong asset base in terms of the Reebok including the DeVere Hotel and the training ground. However, there have been few signs of serious interest.