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Bang a Gong
Posted by editor_usa

Elton’s Company Said to Have Money Trouble

Friday 8
April 2005 @ 23:24

Elton may have just made the Sunday Times‘ Rich List. But William A Bong, the parent company of his businesses, has an overdraft over nearly 27 million pounds, according to an article by Nicole Lampert from the Daily Mail.

latest company accounts show that Sir Elton John may need to
curb his considerable outgoings.

The figures reveal that Elton’s company has an overdraft of nearly £27million. The 2004 accounts for William A Bong, which is the parent company of Elton’s businesses, showed a fall in turnover of more than £5million.

But the biggest change was in the company’s overdraft which rose from £14,880,265 to £26,818,728 in the space of 12 months.

Pop music accountant Cliff Dane said he believed that the figures meant  Elton would have to carry on working for some time if the company was to avoid being in trouble.

‘Everything is big with Elton John,’ he said. ‘He makes a lot of money and he needs to keep on making it. He is borrowing more than he is earning for the company at the moment and that is why it has the overdraft. He has taken a lot of money out of the company and if he suddenly stopped working he could be in trouble.’

The latest accounts could explain the star selling off his management company, Twenty-First Artists, last week for £16million.

But last night a spokesman for the star insisted he was not in financial difficulties, saying: ‘This does not affect his personal wealth. He has three films on the go, two theatre shows, a big photographic exhibition and he paid out for his tours so he is waiting to get a lot of the money back.

“Every company has borrowings and this company is no different.’ The accounts are likely to improve this year. Sir Elton has written the music for a new West End version of Billy Elliot and signed a three- year £ 30million deal to perform in Las Vegas.

Yesterday Frank Presland, chief executive of William A Bong, said: ‘The company is emphatically not in any financial trouble. The problem with accounts is that they only speak about one particular day and don’t  take into account the money coming in.

“The overdraft is illusory and this is the way the business is run. I wish I had Elton John’s financial problems!”