Jonathan Jackson on the financial challenge facing Wigan Athletic

‘Smart, modern player recruitment methods, a successful player trading model and a productive academy.’
Joe Royle, Melvin Yan Min Zhang and Darren RoyleJoe Royle, Melvin Yan Min Zhang and Darren Royle
Joe Royle, Melvin Yan Min Zhang and Darren Royle

That’s the blueprint for the future according to Wigan Athletic chief executive Jonathan Jackson, after the club announced losses of £7.7million for the financial year ending May 31, 2018.

With Premier League parachute payments no longer coming in - meaning revenue reduced from £25 million to £6.7 million - the challenge in front of new owners International Entertainment Corporation is stark.

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“A loss for the financial year of £7.7 million is the highest financial loss suffered by the club since 2008,” wrote Jackson in his annual report.

“While this loss was forecasted, it highlights the level of investment normally required to operate a successful football club in the EFL, especially one that has ambitions to reach the Premier League.

“The Championship is now populated by owners who are prepared to invest significant funding into clubs to attempt to achieve success and player salary levels continue to increase each year as clubs compete for the best players in a limited talent pool.

“Championship Financial Fair Play rules attempts to reduce these losses but the regulations still allow for £39 million losses over a three-year period.

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“The main driver of the loss for the year was the expected reduction in turnover due to the cessation of parachute payments.

“Total turnover reduced from £25 million to £6.7 million.

“Predominantly as a result of the decrease in player costs, total expenditure reduced from £25.8 million to £15.9 million.

“The club did not benefit from significant profits on transfer fees as in previous years.

“An offer to purchase Nick Powell was received from a Premier League club in January which would have reduced the financial loss for the year to less than £2 million.

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“Ultimately, the transaction did not happen as the player preferred to remain at the club and, by the end of the season, had contributed a total of 15 league goals and was recognised as one of the stand-out players in the EFL.

“It is ever more apparent that smart, modern player recruitment methods, a successful player trading model and a productive academy are the only alternative route to success without incurring potentially damaging financial losses.

“The club must continue to focus resources on these areas to compete at the higher levels of football.

“By developing players from the academy and investing in under-valued players with potential to improve it is possible to generate positive cash flows, increase the value of the playing squad and achieve footballing success.

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“The essential strategic tools to achieve these objectives are an effective player trading plan incorporating modern player identification processes using data driven analysis combined with football experience and informed decision-making.

“Promotion to the Championship in 2018 created the familiar challenge of competing in one of the most difficult leagues in world football.

“One of the first decisions taken by the Board of Directors was to reward the first-team manager and several other key football staff with new long-term contracts.

“Recruiting and retaining successful people is essential in any business and the first-team manager is a major component in any football team’s success.

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“The board also continue a strategy to invest in the club’s academy with the objective of producing players for the first team.

“It is anticipated that the academy will achieve category two status within the next 12 months which will enhance the level of our operations due to more challenging opposition at all age levels.

“The current under 18 team contains four internationals and remain unbeaten this season at the time of writing.

“It is five years since the introduction of the Elite Player Performance Plan and I believe the club will benefit from the first real products of the system, and our investment into the academy, over the next few seasons.”