Re: Financing package wipes out Saints debt : Wed Oct 19, 2011 10:06 am  

Rogues Gallery wrote:

Hence Wigan RL diversification and investment into other areas, which will become apparent in the next year or so.

Union?

Re: Financing package wipes out Saints debt : Wed Oct 19, 2011 10:26 am  

Rogues Gallery wrote:

He explained it to us at the shareholders meeting. It was the final payment for his purchase of Wigan from DW. He also explained Wigans tax liability for the image rights payments that most clubs are likely to face and the fact that Wigan made a profit on the 2009 season, would make a profit in 2010 but expect to make a loss in 2011 due to quite big investments being made that would bring profit to the club in further years.

It was a very informative and interesting meeting.

From the annual accounts,Wigan made a net loss of £540k y/e 30 Nov 2009 and a net profit of £38k the following year.At 30 Nov 2010,they had negative net worth of £2.69m(ie liabilities exceeded assets)

Re: Financing package wipes out Saints debt : Wed Oct 19, 2011 10:44 am  

Saint from Prestwich wrote:

From the annual accounts,Wigan made a net loss of £540k y/e 30 Nov 2009 and a net profit of £38k the following year.At 30 Nov 2010,they had negative net worth of £2.69m(ie liabilities exceeded assets)

Wowsers. For comparison, what is our net worth? Are we worse off?

Re: Financing package wipes out Saints debt : Wed Oct 19, 2011 11:01 am  

Judder Man wrote:

The biggest problem for Wigan RL is next year if the Latics get relegated. DW will lose his premiership funding and could be possibly going to Ian Lenegan for increased running costs. As Wigan has very insignificant asset value, this could damage profit margins, a couple of bad seasons and reduced attendances Ian Lenegan will have to dig deep on a stadium he dosn,t own.

Wiganers had better be careful what they wish for. A relegated latics could easily drag the goons down with them. Their minimal margins will soon be wiped out and instead of the current situation where football subsidises the rugby, could easily end up with the goons having to prop up the latics

Re: Financing package wipes out Saints debt : Wed Oct 19, 2011 11:14 am  

SomersetSaint wrote:

Wiganers had better be careful what they wish for. A relegated latics could easily drag the goons down with them. Their minimal margins will soon be wiped out and instead of the current situation where football subsidises the rugby, could easily end up with the goons having to prop up the latics

Not necessarily - the premier league cashcow getting carted off to Maccie D's might be a major blow to Latics, but there's no reason at all that they couldn't still do financially quite nicely in the Championship or even League 1 - revenue streams in footie are much bigger even at the lower league levels than Superleague could ever dream of. MK Dons run a stadium about the same size as the Piedome in League 1 on less than 9K a game for instance.

Re: Financing package wipes out Saints debt : Wed Oct 19, 2011 11:28 am  

Northampton_Saint wrote:

Not necessarily - but there's no reason at all that they couldn't still do financially quite nicely in the Championship or even League 1 - revenue streams in footie are much bigger even at the lower league levels than Superleague could ever dream of. MK Dons run a stadium about the same size as the Piedome in League 1 on less than 9K a game for instance.

Fully agree with you, clubs also get a real good parachute payment when relegated to the Championship

Re: Financing package wipes out Saints debt : Wed Oct 19, 2011 11:36 am  

Saddened! wrote:

Wowsers. For comparison, what is our net worth? Are we worse off?

we had negative net worth of £1.46m at 31 Oct 2010 having incurred losses of over £2m in the two years 2009 and 2010.

The balance sheet at 31 Oct 2011 will make very interesting reading but it won't come into the public domain until next year.

Re: Financing package wipes out Saints debt : Wed Oct 19, 2011 11:40 am  

Northampton_Saint wrote:

Not necessarily - the premier league cashcow getting carted off to Maccie D's might be a major blow to Latics, but there's no reason at all that they couldn't still do financially quite nicely in the Championship or even League 1 - revenue streams in footie are much bigger even at the lower league levels than Superleague could ever dream of. MK Dons run a stadium about the same size as the Piedome in League 1 on less than 9K a game for instance.

I think though that the latics without the massive tv revenue coming from Sky would surely struggle even in the championship. They would lose all their premier league class players, they would be playing in front of home crowds of probably 5-6k. There crowds are low even in the premiership and they are bolstered by good travelling supports.

Going back to the topic financially from a company's perspective, share capital is much more advantageous than bank loans. We will save the monthly interest payments and there will be no obligation to pay the capital. The shareholders will be able to sell their shares to other investors if there is a market for the shares.

Realistically the directors have more or less pumped huge sums of money into the club with no realistic expectation of ever getting it back. For that we must be truly thankful and appreciate what a lucky club we are. If we can grow the revenues of the club with ticket sales and hospitality etc we are in a fantastic position going forward. I would go as far as to say the future looks very bright.

Re: Financing package wipes out Saints debt : Wed Oct 19, 2011 12:29 pm  

glasgowsaint wrote:

Realistically the directors have more or less pumped huge sums of money into the club with no realistic expectation of ever getting it back. For that we must be truly thankful and appreciate what a lucky club we are. If we can grow the revenues of the club with ticket sales and hospitality etc we are in a fantastic position going forward. I would go as far as to say the future looks very bright.

This all depends whether future profits generated by the stadium (which everybody here seems to be expecting) are re-invested into the club or whether the directors of the company decide to pay dividends to shareholders as per the normal business community.

I think it is un-heard of for a rugby league club to pay dividends however if the investors here wish to get a return they can get one by taking profits made by the club for themselves. Obviously other shareholders benefit as well bit by creating more shares for themselves then they get a bigger slice of the case.

When Warrington moved into their new stadium I believe that some of the existing shareholders let it be known that they would be looking to utilise the stadium to generate profits to provide dividends as a return on their investment into the previous black-hole of a rugby club unless somebody paid them for their price for their shares. Current owners of Warrington have confirmed that all profits made by Warrington will be re-invested into the club.

Re: Financing package wipes out Saints debt : Wed Oct 19, 2011 12:47 pm  

Saint from Prestwich wrote:

we had negative net worth of £1.46m at 31 Oct 2010 having incurred losses of over £2m in the two years 2009 and 2010.

The balance sheet at 31 Oct 2011 will make very interesting reading but it won't come into the public domain until next year.

By 31st we will have taken possession of a £20 million stadium, that should up our net worth a touch