Jump to content
IGNORED

Owen Coyle Sacked


bcfc_Jamie

Recommended Posts

Do they? I forsee them heading the way of Pompey if they don't get straight back up.

http://swissramble.blogspot.co.uk/2010/11/why-bolton-have-so-much-debt.html

I've only skim-read this but it would appear that they do, but he charges interest on his loans, which I don't believe Lansdown does.

I suspect the state of their finances is why Phil Gartside was always in favour of removing relegation from the Premier League. I wonder if he's changed his tune now.

Link to comment
Share on other sites

Interesting few paragraphs

In the meantime, last year’s financials clearly indicate how much Bolton rely on the backing of their owner, as he has covered their increasing losses over the last few years. As Gartside put it, “Without Ed’s support, we would be watching a very different standard of football. He is the only reason we are in the Premier League. He has given us a huge amount of money.”

Actually, Davies has not exactly “given” the money to the club, as Bolton have to pay a price for his generosity. Last year, his company was paid £3.6 million in respect of “arrangement and guarantee fees” for the £85 million loan, which is linked to an interest rate of 5%. It’s also repayable on demand, though the directors have received assurances that repayment of the loans will not be demanded within 12 months of signing the financials statements. In fairness, these terms are an improvement on the previous year, when the interest rate was a very high 10% on a £23 million loan, which produced a £2m payment to Davies.

The loan is also secured by a floating charge on the club’s assets, while Moonshift is owed a further £2.7 million by the club for what is mysteriously described as a “player success fee”.

In short, it is clear that Davies’ funding has been vitally important to the club, but it is equally clear that this is a commercial investment that has provided the owner with a healthy income stream during a difficult economic climate. The club’s chief executive, Allan Duckworth, acknowledged that the owners’ loans charged interest “at a premium which reflects risk, which is high at a football club.” As a result, the club has been paying £4.5 million a year in interest, which is not massive, but it is a sizeable burden when the turnover is only around £60 million.

5%2BGary%2BCahill.jpg

Link to comment
Share on other sites

They already cut that by £20m

And, as per other poster, we already have a very good number 2.

That is'nt what the local Bolton press officer said on the radio earlier. They are still paying Premier League wages to over 3/4 of the squad and still have a large back room staff. :dunno:

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...