? No sign the quest for new source of borrowings has succeeded
? Gary Cahill's transfer value likely to fall as contract runs out
The Premier League's biggest crisis club will, by common consent, be at the Emirates Stadium on Saturday. Yet it is not Arsenal but their opponents, Bolton Wanderers, who arguably most befit that label. Arsenal's �200m-plus turnover, low debt and extensive property portfolio ensure they can weather temporary challenges on the pitch. Bolton's problems, for now reflected in their league position of 19th (albeit after a tough run of fixtures), appear more structural.
In 2009-10 their costs were �15.5m more than they earned. Principally this was due to having to repay �16.5m of bank debt. Eddie Davies, the Isle of Man-based inventor-tycoon, stepped in to consolidate the club's borrowings into an �85m loan, �24.5m of which was new cash. There was also a �14.8m splurge on new players, accounting for much of the rest of those funds.
Alan Duckworth, the club's parent-company chief executive, said at the time: "There has been worse?than?expected performance on the field ? [and] increased borrowings and higher finance charges." Bolton's "worse-than-expected" 14th place was followed by another 14th place last year. That stasis brought �6.2m more in broadcasting fees thanks to the Premier League's new TV deal but 2009?10's rising wages consumed �5.6m of that.
There was an admission at the time that in the months ahead there would be a shortfall that Bolton hoped to mitigate through potential further borrowings. However, there is no sign this quest has been successful.
One way out might have been Gary Cahill's �15m sale. But despite actively marketing the England defender he has entered the final year of his contract and, with his value fast diminishing, he is still at the Reebok Stadium. Phil Gartside's note to the 2010 accounts said: "The most wonderful thing for all football fans is the dream ? that the best is yet to come." For Bolton, sadly, a dream is all that seems.
Source: http://www.guardian.co.uk/football/2011/sep/22/bolton-wanderers-debts-gary-cahill
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