Wigan Athletic CEO explains recent financial move

As per information at Companies House, Phoenix 2021 Limited last month issued additional share capital of £8,020,499, which takes the total amount of share capital issued to £16,493,459.

Given the late payment of staff wages, which were due last Friday, some fans have been questioning whether the shortfall could be covered by the recent 'injection'.

Brannigan, however, says the two are completely unrelated.

"The document that was recently processed at Companies House for £8million related to the conversion of funds from Mr Al Jasmi, through EPIC, that had previously been received by the club as loans prior to being converted into additional equity (shares)," he said.

"If they are loans, there is obviously an ability for those funds to be returned whereas once they are converted into equity, that ability is far more restricted.

"What it does, or what it should do, is give the fans a lot of comfort that these funds have been received by the club from Mr Al Jasmi and that they cannot simply be returned.

"I did see a suggestion that this was for funding going forward but it's actually an administrative process that converts loans into equity.

"It's very normal within the football industry and it's part of the EFL's reporting and financial measures.

"Generally, twice a year, we will convert any funding received throughout the financial year into equity so that they show on a balance sheet as share capital rather than loan capital, and the timing is in line with the reporting of the interim and the full year accounts."