We all knew Bolton's finances (much like the vast majority of teams in football) were dire. The club has just released its 2011/2012 financial report and we're giving you a look into the numbers.
Unless you're winning the Champions League and the FA Cup, football is a business where you almost certainly lose money. The financial report covers the whole of the 2011/2012 season, ending in June. In a lot of key areas, the club saw financial growth but there is one important figure that rose when we didn't want it to.
Bolton saw the club's debt increase by a massive 24% from last year's £110 million all the way up to £136.5 million. Now, it's not all doom and gloom as unlike the debt that Rangers had, this money is not owed to a bank. Instead, £125 million is owed to owner Eddie Davies' company, Moonshift Investments Ltd. This debt has been refinanced from short-term to long-term, signifying that Bolton Wanderers do not need to pay it back immediately.
In much better news though, Bolton slowed the financial bleeding by announcing reduced losses. Last season's financial loss for Burnden Leisure was £26.1 million, dropping to £22.1 million.
Bolton saw rises in advertising revenue, and merchandise sales while turnover, staff costs, and general administration costs all decreased.
Phil Gartside commented on the report:
"We continue to face a tough economic climate, but we have continued to invest across the business, and for the second year we have reduced our losses.
"Key to this set of figures is the fact Eddie Davies has converted his investment in our club from short-term to long-term debt.
"It is a huge vote of confidence and underlines the on-going support and commitment he has for our club.
"To lose our place in the Barclays Premier League was hugely disappointing for all of us - fans, staff and players, and our aim is to return at the first opportunity."
Next year's report will be extremely interesting reading as Bolton Wanderers cut a lot of spending over the summer, just about halving the wage bill. That move, of course, was a response to the fact that Premier League TV money will no longer be coming in (estimated to be £60 million this year and rising in the near future) and with relatively paltry parachute payments coming in.