Wolves lose £76m over the decade

Wolverhampton Wanderers’ latest set of accounts contained few surprises. The gist of the results for the 2023-24 financial year had been well-trailed in messages from the club in recent times. So it was widely expected that the club would make another loss, but that the figure would be much smaller than in the previous two seasons.

With the Premier League’s rules on permitted losses clear in their minds, Wolves made a concerted effort at the start of the financial year to sell players to ensure they complied. And the policy worked, with Wolves avoiding any sanctions.

For the third year in a row, Wolves made a pre-tax loss but the figure was hugely reduced from £67.2million ($85.4m) in 2023 to £14.3m in 2023-24.  Turnover rose from £168.6m in 2023 to £177.7m in 2024, while the net player trading loss — a metric the club uses which combines player sale profits with amortisation and contract impairments — was reduced from £38.6m in 2023 to £2.6m in 2024.

The latest figures take Wolves’ pre-tax loss for the last decade to a combined £76.5m, a figure which would have been higher had it not been for owners Fosun writing of £126.5m of loans in 2020-21.  The operating loss, which shows the position of the business if player trading is removed from the equation, was £73.3m, underlining that Wolves are currently reliant on selling players to cover losses elsewhere in the club. The figure puts Wolves in the bottom third of the Premier League for operating profit and loss.

Revenue has grown by just £5.2m since 2018-19, the club’s first season back in the Premier League, which represents a growth of just three per cent. Commercial income has grown by just £1m in that period.

Wolves’ net spend on players across the last five years of £209.1m is the 12th-highest in England.  Since the end of the last financial year, player trading has brought in player sales profits of £65.3m.

The accounts also reveal a concern than the club might breach agreements with lenders early this year due to an increased wage bill that the club attributes to injuries — Yerson Mosquera, Sasa Kalajdzic and Gonzalez have all missed the entire season due to serious knee issues.  But the report says Wolves have spoken to lenders, who have indicated a willingness to waive the breaches.