Wigan Athletic has announced that it posted its first profit in six years thanks to a reduction in wages and debt. The figures cover the 2011-12 season when Wigan finished 15th in the Premier League.
The club reported a net profit of £4.3m for the year to the end of May, compared with a loss of £7.2m the year before.
EBITDA (earnings before interest, tax, depreciation and amortisation of players) was £8.9m compared with £4.9m in the previous year.
Turnover increased to £52.6m, compared to £50.5m in 2011.
Wages were the most significant expenditure but these reduced to £37.7m compared to the previous year cost of £39.9. Wages in 2012 accounted for 71.6% of the club’s turnover, down significantly from 79% of revenues in 2011.
During the year Wigan spent £10.4m on new players whilst profit from the sale of players increased to £7.9m from £2.3m in the previous year primarily due to the sale of Charles N’Zogbia to Aston Villa.
Debt, which includes borrowings and loans from Wigan’s chairman Dave Whelan and his family, was cut to £20.5m from £72.2m, with £48m in borrowings converted in to shares in the club.
Wigan’s chief executive, Jonathan Jackson, said the club was getting closer to breaking even:
“The results are once again encouraging and we are very pleased to report a net profit position in a very competitive environment.”
“We continue to maintain our position in the Barclays Premier League by significant investment in the playing squad to strengthen our position on the field in our eighth year in the top division.”
It is pretty remarkable what Roberto Martinez has done at Wigan, keeping them in the Premier League with a wage bill that is a fifth of some of the top teams in the league.