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Owls shed £41m debt
Sad farewell: Manager Gary Megson wanted James OConnor to stay with the Owls but the club offered the player no contract
sheffield Wednesday removed more than £41 million of debt from the club following the takeover by Milan Mandaric last December.
The club released its annual report and accounts for 2011 yesterday, which takes in the period of May 31 2010 to May 31 2011.
During that time Wednesday felt the effects of relegation from the Championship and a full season in League One.
The figures reveal the amount of debt that the Owls were in until the change of ownership to UK Football Investments LLC, which also saw Mandaric take over as chairman.
Including interest, more than £25m was owed to the banks and more than £21m to Sheffield Wednesday Plc.
A statement from the club said: “The main highlight that we are pleased to report is the removal of over £41m of debt from the club. Last season, as part of the takeover strategy our operating losses were offset by the waiver of the intercompany debt (of £21.4m) and, although no money changed hands, the accounting treatment saw the eventual profit reach £15.8m.
“As well as a major overhaul of the business both on and off the field, we are also able to report the net assets of the business at the end of May 2011 were a healthy £11m compared to the net liabilities of £31m reported at the end of May 2010.
“The trading figures are generally disappointing, a mixture of relegation, supporter dissatisfaction and the general economic downturn saw falls in revenue across all areas of the business.”
Relegation from the Championship cost the club more than £4m in turnover, down from almost £14m in 2010 to £9.4m in 2011.
Meanwhile, midfielder James O’Connor is leaving the club on January 1 for the USA. His Hillsborough contract runs out at the end of this month so he is to make a fresh start at a US club who have yet to be disclosed. Owls manager Gary Megson is reluctant to lose a player who played in nine wins, two draws and only one defeat in his recent run in the side.
It was ended only by a deep gash in his leg suffered in training after last month’s home match against Leyton Orient. The 32-year-old is still on the mend so has played his last match for the club.
Megson explained: “I’m really disappointed with James’s decision. James only signed a six-month contract in the summer. I wanted him to stay on and sign for another six months to the end of the season and we’d take it from there.
“I spoke to Paul Aldridge [chief executive] and said I wanted him to firm up Danny Batth, Stephen Bywater and Ben Marshall, and firm up James to the end of the season then try to bring in another player on the right-hand side.”
O’Connor said: “The problem is that I haven’t been made an offer by the club. From my point of view there’s nothing here for me at Sheffield Wednesday so I’ve got to look elsewhere.
“I’m disappointed myself, but such is life. I wish them all the best. It’s a fantastic club; it’s been an absolute privilege to play for them.”
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Comments
There are 100 comments to this article
Page 1 of 7
craigowl
Saturday, December 24, 2011 at 12:42 PMThere are so many ways to make figures look good. But i know one thing.this club OUR CLUB,Is in the best financial position it has been for many years. The decline started in the premiership days of high wages for under performing money grabbers who thought nothing of our great club. Those days are long gone THANK GOD. We can now move onwards,and hopefully upwards from here. I`m proud to be an owl,always have been always will be. I remember standing on the cop years before the roof was put on,watching us play in the old 3rd division. And finally,for the mindless blunts fans who insist on reading about Wednesday,the only cup you`ve got that we will never win,is the 4th Division Champions.LOL How proud you lot must be for winning that. OWL4LIFE
Strigidae
Wednesday, December 21, 2011 at 05:21 PMIf they are magic beans they make the Annual Accounts look like you're making a profit!
Ukip
Wednesday, December 21, 2011 at 04:52 PMStrigidae. What happens if they are magic beans?
Strigidae
Wednesday, December 21, 2011 at 02:05 PMI used to be an accountant. I know how many beans make five, two beans, two half beans, half a bean and a bean and a half!
Ukip
Wednesday, December 21, 2011 at 01:49 PMMandaric got this club for peanuts. He acquired the club for £10 million, with an income stream of 20K supporters a week. The PLC signed the club over to him for £1. He may have to pay another £5 million to pay of the loan note holders, if that. I wouldn't be so bought by creative accountancy, that is why we have a banking crisis.
CB1889
Wednesday, December 21, 2011 at 01:39 PM@94 You know you don't have to be quite so touchy over the subject. In actual fact it does not state 10m is now owed to Mandaric. The accounts only take you to May, which shows 6m loaned from Mandaric. But he has put more since then. It's worth taking note that the club's profit was 9m and loss 16m. It's the waiver of loan that make these accounts show a 15m profit.
therealdealsteel
Wednesday, December 21, 2011 at 11:00 AMCB 1889 where in the OFFICIAL accounts does it say this? No where.. so stop fabricating the truth to make the plight of your tin pot club look ok. You are in the brown stuff.. Fire sale commences Jan 1... Role up.. Role up.. get you bargains at Bumole Stain discount store... Forward for sale.. limited use ( Going on holiday , paid for HMP) Ginger Rat, and an ideal seat warmer who will keep the bar tab open at all times
CB1889
Wednesday, December 21, 2011 at 10:17 AMWhat this article doesn't say is that the club now owes Mandaric over £10m in loans. He has provided this for the running of the club and player fee's. The debt has already begun to rise, but like the blades it's to the chairman not bank.
malblue
Wednesday, December 21, 2011 at 10:15 AMSorry Paul, post 91, There's only 1 team in the world. WTID Ps I have followed Wednesday many years, and in all the goals scored against us, i have NOT seen a good one. They are ALL Jammy.
paulSheff9
Wednesday, December 21, 2011 at 12:29 AM@40 Bladedownsouth, Want to swap places financially ? bet you do but no thanks not possible!!!! Anyway hope both shefffiel,d club go up and on to the premiership where they both belong.. Sheffield deserves it don't you think?
therealdealsteel
Wednesday, December 21, 2011 at 12:13 AMhey ESPN Blade.. I could tell you many stories about times i spent at Guys Lodgings nr Brock .. but I won't!!!! spent many a happy time in the area ..
therealdealsteel
Tuesday, December 20, 2011 at 11:50 PMSo EPNS blunt.. Is it sun shine n candy floss in Knotts End? ... s ucking a fishermans friend in Fleetwood? having a No. 2 in the No 3? or keeping the bed warm for Chav, in Kirkham???
therealdealsteel
Tuesday, December 20, 2011 at 11:45 PMOMG not even a swear word!!!
therealdealsteel
Tuesday, December 20, 2011 at 11:44 PMComment removed by moderator
SPHINCTER MUSCLE
Tuesday, December 20, 2011 at 11:17 PMA posh blade? definitely onto blackpool tax office tmoz.can afford a zimmerframe.be buying a season ticket at lane next.people like me work so people like you can be posh.only joking.
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