The past week in football news has been one filled with shock for many fans of Wigan as they announce the club has gone into administration. With a 12-point deduction imminent as a result, many are wondering what the future of this club will look like as they head into the 2020/21 season. Is there another change in ownership on the horizon? In this article, we will be breaking down all the news that we know so far.
Administration Comes Just One Month After New Ownership
Just one month after new ownership has come to the club, Wigan has announced that it has fallen into administration as a direct result of the Covid-19 pandemic. The club has changed hands several times in the last few years with a deal being signed with a Hong-Kong based Entertainment corporation in November of 2018. Since then the club has been sold again in May of 2019 to Next Leader Fund took control.
However, this new ownership has not meant a new start for the club as a financial debt of £200 million by September, this has only been worsened as a result of the postponement of the league earlier this year. With the league returning behind closed doors, this has meant that the club is experiencing a huge loss of revenue from the likes of merchandise and ticket sales. With the losses that the club are experiencing at this time, it has bought shock to fans of the club who saw success into the premier league in 2005 and a FA cup win in 2013.
A 12 Point Deduction Based On Performance
In addition to the announcement of the administration, there is set to be a 12-point deduction for the club based on their current performance in the league. Despite the amazing performance in their first few games back leading them to become highly popular to those sports betting online, the club needs to maintain consistency as their performance could completely change when the 12-point deduction will be implemented. In addition to this, a consistent performance within this season will help to maintain their odds for the remainder of this season, with the potential of increasing their betting odds when they return for the 2020/21 season. Though the club will not directly benefit from any bets made, they will positively impact the crowd as they begin to regain the trust of the fans through this uncertain time.
If the team are able to work at the same level that they have been so far this will be positive for the club. If the team finish outside the bottom 3 at the end of 46 games the sanction of 12 points will be applied there and then. However, should the team finish in the relegation zone at the end of the season the 12-point deduction will be applied in the 2020/21 season instead. With the deduction looming, however, many are wondering just how this will affect the rest of the club’s performance for the remainder of this season.
A Glimpse Of What Is To Come
Though the news of administration for Wigan comes as a shock to the fans as well as others in the league, many are not surprised by this. With a number of the smaller clubs experiencing a huge loss of revenue at this time, experts are predicting that there will be many more clubs experiencing a similar problem when it comes to finances as a result of the crisis. This administration comes after the news of huge losses for premier league club Manchester United who have estimated to have lost a total of £3.3 million lost in the third quarter of the financial year a result of Covid-19.
The Financial Issues Of Smaller Clubs
The financial issues seen at Wigan is an issue that many experts predict will be happening to several clubs in the near future as games continue to e played behind closed doors. Though there is the ability to profit off of marketing and other sponsorships, this may not be enough to cover the loss of ticket sales whilst playing the staff and other expenses. As a result, it is important to prepare for the likelihood of several other smaller clubs making similar announcements as the funding is just not there.
With this in mind, the return of sport is a step in the right direction for a number of these clubs as funding can begin to trickle in and bring the audience back in to enjoy their favourite sport once again.