Wolves finances revealed: Revenue down despite promotion as parachute payments drop
Wolves made pre-tax profits of more than £2.4 million last year – but a drop in Premier League parachute payments dented turnover, according to the club's official accounts.
The headline profit is offset by a loss of more than £1.6m to the club's property account caused largely by a depreciation of the Molineux stadium. It means that over 2014/15 profits were reduced to around £700,000, as revealed to the Fans' Parliament last month.
The club's annual report and statements for the financial year ending May 31 shows turnover for 2014/15 dropped from £32.6 million to £26.4m, despite the promotion from League One the previous season.
This is due partly to an £8.9m drop in parachute payments from the Premier League after relegation in 2012.
This season will see the last of the payments – believed to be around £8m – leaving the club with a substantial financial challenge over the coming 12 months.
In addition, while any profit is welcomed in the turbulent world of football finances, the figures do not make especially encouraging reading for any potential buyers.
Owner Steve Morgan stepped down as a director in October last year and has put the club up for sale.
One director, thought to be chief executive Jez Moxey, was paid £430,000 with a further £75,000 pumped into his pension fund. The total of £505,000 was up £16,000 from the previous year.
Wolves' accounts are published in two parts to reflect the activities of the football club and its properties portfolio.
