Wolves reveal losses of £4.9m
Wolves today announced losses of almost £5m in their promotion year – barely dipping into Steve Morgan's £30m investment.
Wolves today announced losses of almost £5m in their promotion year – barely dipping into Steve Morgan's £30m investment.
The club recorded an overall deficit of £4.9m for the year ending May 31, 2009, after player trading and net interest, compared to a loss of £4.1m in 2008.
Morgan's cash injection does not directly affect the figures except for interest earned.
And given the comparative scale of debt elsewhere in the football world, Wolves' losses are seen as modest and manageable.
In a statement issued to the Fans' Parliament last night, the club explained the losses were part of the strategy to reach the Premier League but "will not be repeated in the current financial year".
Investment since last May will be included in this season's figures, offset by the minimum £30m from Sky TV.
Turnover was £18.3m compared to £18.2m in 2008, despite the decrease in the solidarity payment from the Premier League.
This was down £700,000, based on finishing seventh in 2007-08, on £1.4m for finishing fifth in 2006-07.
But the losses were partly offset by an improved average home League gate of 24,153 compared to 23,500.
New signings in the last financial year included Richard Stearman (around £1.5m), Chris Iwelumo (£400,000), David Jones (£1m), Sam Vokes (£300,000) and Christophe Berra (£2.3m) and sales of Seyi Olofinjana (£3m), Freddy Eastwood (£1.25m)and Mark Davies (£1m plus add-ons).
Wolves' net assets are £61.3m including Morgan's investment, the value of Molineux, the Aldersley Dome and the Compton training ground, but not players' valuations.
Chief executive Jez Moxey revealed promotion was secured a year ahead of Morgan's schedule.
But Moxey assured fans neither the plans for the expansion of Molineux or pursuit of on-field success would be sacrificed against the club's financial future.
"The club's number one priority is to re-establish Wolves as a competitive club in the top flight," he said.
"To help us achieve this, exciting redevelopment plans are being drawn up now for the expansion and improvement to Molineux.
"This project will require very significant investment but we will continue to fund on-field improvements.
"However, we will not over-stretch the club financially in the pursuit of football success.
"We have a responsibility to ensure Wolves has long term sustainability as well as an opportunity for the team to win today."
