Wigan Warriors report sizeable losses for the year ending 2021
Picture by Allan McKenzie/SWpix.com - 16/09/2022 - Rugby League - Betfred Super League Semi Final - Wigan Warriors v Leeds Rhinos - DW Stadium, Wigan, England - Wigan & Leeds stand for a minute s silence to remember the the passing of Queen Elizabeth the Second. Wigan Warriors v Leeds Rhinos SWP-1854-0006
Wigan Warriors have logged their annual report and accounts with Companies House reporting an operating loss of £1,757,809 for the year ending 30th November 2021.
In their statement of comprehensive income it reveals their profit and also their administrative expenses which almost reached a huge £6 million and as a result they’ve recorded over £1.75 million in losses.
This obviously comes off the back of the pandemic and follows a 2020 operating loss of £442,595.
During that pandemic period lots of sources of income were blocked or limited, most notably matchday attendance and profits, with many games played either behind closed doors or open to only a limited capacity.
The report sees these factors explained.
“As the company’s operations continued throughout 2021, the availability of Covid-19 related government support was significantly reduced (in particular the Job Retention Scheme), and as a result the ability to utilise this support to mitigate the reduction in revenue was significantly reduced.
“As a consequence, the company made a much greater operating loss in 2021 than in 2020. While this has been challenging, the losses have been managed through utilisation of loan funding from the UK Government and from Lenagan Investments Limited.”
The Warriors are owned by chairman Ian Lenagan and his Lenagan Investments Limited are the company that the Warriors owe loan money to.
Effectively Lenagan’s company lended his business, Wigan Warriors, substantial amounts to see them through the pandemic.
This is a practice that happens a lot in sports but one that’s left the Warriors reporting a loss in 2021.
Recent bad news also followed with the club’s kit distributor, Elite Sports UK, having gone into administration leaving huge amounts of stock seized at port, meaning many Cherry and White fans may not receive their new shirt for Christmas.
However, a club the size of Wigan with consistently high attendances, great merchandise and star players, they are surely going to be on the up again in no time at all.