Wigan Warriors - wiganrugbyfans.com • Are we up for sale?
When selling a business you try to make the balance sheet look as attractive to a potential suiter as possible.
Reduce fixed costs, control variable costs and generate a profit margin or reduce losses on the balance sheet to a controlled minimum.
So in theory you would think the current moves would suggest that is the current thinking behind the recent cost cutting exercise.
With such a niche and well know brand though and the fact the success of the business is not only measured on a balance sheet but also the trophy cabinet then I think it is a somewhat different scinario.
I would suggest these measure indicate the exact opposite to the sale position and IL is doing his upmost to cling on to the club. It’s not like all of a sudden someone who has no knowledge of the game is going to appear and want to suddenly buy Wigan and offload millions into the club to do so.
The only people interested in buying the club will be very familiar with the goings on at the club in the background and on the field. Anyone who wanted to buy the club in my opinion wouldn’t be looking at the balance sheet as a priority.
People who buy sports clubs of our scale generally only do so if they are willing to do it as an expensive hobby, or can see missed opportunities that they feel they can convert to make them profitable.
I’m not sure what IL’s financial position is however I’m not sure he is willing to or has the resources required to maintain a club losing money but is trying his best to retain ownership by making sure he covers his losses.
Very rarely though does that policy bring the infield success that the fans demand.
Reduce fixed costs, control variable costs and generate a profit margin or reduce losses on the balance sheet to a controlled minimum.
So in theory you would think the current moves would suggest that is the current thinking behind the recent cost cutting exercise.
With such a niche and well know brand though and the fact the success of the business is not only measured on a balance sheet but also the trophy cabinet then I think it is a somewhat different scinario.
I would suggest these measure indicate the exact opposite to the sale position and IL is doing his upmost to cling on to the club. It’s not like all of a sudden someone who has no knowledge of the game is going to appear and want to suddenly buy Wigan and offload millions into the club to do so.
The only people interested in buying the club will be very familiar with the goings on at the club in the background and on the field. Anyone who wanted to buy the club in my opinion wouldn’t be looking at the balance sheet as a priority.
People who buy sports clubs of our scale generally only do so if they are willing to do it as an expensive hobby, or can see missed opportunities that they feel they can convert to make them profitable.
I’m not sure what IL’s financial position is however I’m not sure he is willing to or has the resources required to maintain a club losing money but is trying his best to retain ownership by making sure he covers his losses.
Very rarely though does that policy bring the infield success that the fans demand.
Statistics: Posted by jonh — Wed Mar 27, 2019 2:16 pm — Replies 24 — Views 2298