Warriors Seek Long Term Gain over Short Term Pain
Written by: Keith Tully
Reviewed: Tuesday 11th September, 2012
Top Super League outfit Wigan Warriors are preparing for reduced profits this year following significant investment into its new youth academy affiliation with Wales Rugby League.
Warriors, who lifted the League Leaders’ Shield after their home fixture with arch rivals St. Helens last Friday, posted heightened profits across the board in their 2011 results but in a report accompanying its newly filed accounts, club directors expressed confidence that their long-term player development venture would ultimately bear fruit both on and off the pitch.
The club are also developing a new campus which is situated on the site of an old secondary school which they renamed 'Central Park' in homage to its old stadium that Wigan moved out of in 1999 to the newly built DW Stadium, previously sponsored by JJB.
The report said: "The directors do not expect the 2012 year to be profitable as the company invests significant funds in its new premises at Central Park, directs funds into developing its partnership with Wales Rugby League and develops its new TV Online revenue opportunities.
"The directors are confident these are sound strategies that will result in improvements for the club on and off the pitch in the long term."
The report added: "Season ticket sales and match receipts increased by £490,000 from 2010 with a significant contribution arising from the Challenge Cup competition success.
"Retail and sponsorship sections of the business also performed well in the year with both reporting over 20 per cent increases.
"While (wage) payments increased by 11 per cent from 2010, this mainly arose from playing squad bonuses due to the team's success in the two competitions."
Author
Keith Tully
Partner
Keith has been involved in Business Rescue since 1992, during which time he’s worked for both independent and national firms. His specialties include company restructuring matters and negotiating with HMRC on his clients behalf.
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