Wolves write off £27m in accounts

Wolves today revealed they have taken a £33 million hit in their accounts, on the back of the collapse of their Premier League dream.

Wolverhampton Wanderers' Molineux ground
Wolverhampton Wanderers' Molineux ground

The club was able to restrict operating losses to just under £6m as it suffered a headlong tumble from the Premier League through the Championship and into League One.

But bosses have factored into their accounts a £27.5m write-off on playing staff’s value leaving figures for the year ending in May showing an overall deficit of £33.1m.

A Wolves spokesman said: “It’s a paper loss and we have taken the provision of dealing with it in one year rather than drip-feeding it over several years.”

The numbers drive home the impact of two disastrous campaigns which have left the club in the third tier of English football this season, during which owner Steve Morgan is braced to see further losses.

The latest accounts were revealed to the Fans’ Parliament last night.

Player trading in the disastrous 2012-2013 campaign helped offset the damage.

Wolves began that financial year by selling Steven Fletcher, Matt Jarvis and Michael Kightly, but the purchase of players such as Bakary Sako, Razak Boukari, Tongo Doumbia and Bjorn

Sigurdarson as part of ex-manager Stale Solbakken’s rebuilding reduced the surplus to £5.7m. This column had a near £2m profit the year before.

It was the club’s incomes which took the heaviest hammerings after the Premier League relegation. Turnover for the year crashed from £60.6m to £32.1m because of the loss of its share of the top-flight’s lucrative media deal.

Attendances fell to an average of 21,789 in 2013, down almost 4,000 on the previous season as season ticket sales slumped to 15,350 from more than 18,000 in the Premier League. This removed £2m from Wolves’ revenues while commercial income also fell by £2.8m.

With players’ wages reduced, operating costs were trimmed to £42.8m, from more than £51m, while the player trading showed a near £5m profit.

In a move the club describes as ‘good practice under UK accounting legislation’ it has decided to take the inevitable collapse of value in its playing squad in one fell swoop. This has been calculated at £12.5m loss on the market value itself and a further £15m in contractual liabilities.

A Wolves statement said these ‘paper’ losses were considered ‘essential steps to address the significant negative financial impact of consecutive relegations’.

But plans for the future are pressing ahead with work on the new £8.5m Academy at Compton due to be completed by September next year.

Comments for: "Wolves write off £27m in accounts "

funny old world

Big club can afford big losses, chumps ay we.

Wolfmaster2000

What a joke!!

No doubt at least 5m of this shortfall has gone in Jez moxburys pies!!

Eat a bloody pie!!!

Moxley OUT!! Booo GERRIMOUT!!!

Mogron OUT!! Booo GERRIMOUT hubcap robba!!!

Stalebacon OUT!!! boooo GERRIMOUT!! mekon!!

Pototio OUT!! Booo GERRIMOUT EEYAYGORRACLUE!! ya couldn't kick a balla putty that shape!!

Bazwolf

Paper loss indeed. The true worth of so many of the failed players ,who saw us take 2 relegations, had dropped like a stone.. We all know O'Hara, Johnson, Ward and Henry lost value. How much is Doyle now "worth" - £0.5m?Steaman? Elokobi? I write this with bitterness because these relegations should not inave happened. Well done Jackett in putting us back on track, with emerging youngsters who will increase their value.

My Friend Stan

Morgan's Club, Morgan's money, let him get on with it, I don't care anymore

Warren

It's not I'm afraid, Steve Morgan and Wolverhampton Wanderers are two very separate entities.

He may 'put money in' to keep the academy project on course, but it'll be in the form of a loan, the interest on which remains to be seen.

Villa pay huge amounts of interest every year and the majority of their debt is money that Lerner has 'put in', so make of that what you will.

I'll bet Jez Moxey still received a vast sum in salary this year too, was it about £1m last season?

Jack the Hat

Warren,

Wait until F.F.P.I. have had a sniff at the books, then the true figures will come out.

Heaven help them.

BOING~~~~BOING~~~~J♣H.

BeeCee

Talking about sniffing Jack. See you are poking that BIG HOOTER of yours in somebody else's business AGAIN.

Robw64

Shall we get the violins out? Money lost and consecutive relegations was down to the gross incompetence of Morgan and Moxey - penny pinching with wages and losing prize captures like Distin, Gardner and Demba Ba and appointing buffoons like TC and Saunders. There will be no sympathy whatsoever from a vast majority of supporters and Wolves are lucky to get the current level of support in large numbers - we have the 2nd best away following in the football league behind Leeds!

Super Wolves

Should of sacked McCarthy after the Blackburn game when we stayed up, Big Sam was available and with the right backing we would still be in the prem. Moxey has a lot to awnser for the amount of penny pinching on players has cost us millions ie. scott dann and all the other players we never signed.

Lifer

Hopefully this will put an end to people ranting on about 'where's the money gone' once and for all.

Dubai Wolves

The money is still there! It's a paper loss. That means not a cash loss. There is actually a cash surplus of c £27m assuming little or finance costs.

Robert

And why has his situation arisen? Because Management and the Board did not appreciate hard won Premier League status as supporters did. Otherwise they would have taken the appropriate action to prevent this situation happening when any supporter of the Club could see what was needed. The lame "We thought we had done enough" comment proves the point. - inefficiency to the extreme and the culprits still make our Clubs decisions. Amazing. As a supporter and ST holder for many years I hope our Club achieve promotion this Season but it will not be achieved without strengthening of the team - the weak spots are showing in the past few games and winter pitches approach with loads of heavy going and injuries..

Johnwolf

And I suppose you will be moaning when kids like Eusebio, Zeli, and the rest of our promising kids move on through a lack of opportunity, how the hell can they play if we keep buying, if as you say you have been a supporter for many years then you will understand the need to build from the roots up instead of spend, spend, spend on a quick fix.

I too want us to go up this season but not on a quick fix and bloody well come straight back down again.

Stuff the glory, glory fans, and the anti moxey/Morgan cretins let's build a squad to get up and stay there.

Mountain Wolf

Johnwolf. How might you feel if I were rude enough to write about the pro Moxey/Morgan cretins?

Sir Lupi

Blimey mate, cheer up, such negativity....the rain, the snow, wim doomed blah blah....however, I can understand your sentiment as if its going to go wrong it generally does at Wolves.

But, what has happened is history now, forgiven but not forgotten imo.

Moxey should of resigned without doubt, I have always felt Morgan has tried to do the right things and he has shown ambition in lots of areas, but his nievity and trust in Moxeys footballing decisions, has not only cost this club more than £27m, the club has also lost its respect with many fans.

The clubs fall from grace can never be over exaggerated. It has been shameful.

We all know Mick should have gone after the Blackburn game, that was the biggest footballing error. Big Sam, O Neil, Houghton, even Benitez were all available plus others I cant think of, yet Mick bullied Moxey (as E & S article exposed) and chicken Moxey failed to do the right thing and fire him. We have witnessed so many clubs achieve Premiership stability since the promotion manager has been respectfully moved on. Even our neighbours West Brom showed us what to do, when Di Matteo was dismissed 3 months into his 1st Premiership season and replace by Hodgson.

It wasn't until Morgan finally blew his stack after the Liverpool game action was finally taken, which led to the overdue sacking a couple of weeks later after the Albion embarrassment.

The decisions made after the sacking, will go down in football folk law as the most ridiculous, suicidal, misguided, short sighted, comical, collection of executive gaffs the modern game has ever witnessed.

If Morgan has got half a brain, he will never forget the glaring errors made and he should endeavour to do his upmost to put a lot of wrongs back to right.

However with Moxey still at the helm, there is little evidence to suggest Morgan has learnt anything at all.

Until this club re-establish themselves in the Premiership, there will be many, including myself whom will never feel the same way or even take Wolves seriously again.

CoRnIsHWoLf

He probably wouldn't mind.......as it was coming from a cretin!

Lakeside

I quote " Wolves began that financial year by selling Steven Fletcher, Matt Jarvis and Michael Kightly, but the purchase of players such as Bakary Sako, Razak Boukari, Tongo Doumbia and Bjorn Sigurdarson as part of ex-manager Stale Solbakken’s rebuilding reduced the surplus to £5.7m." Oh, really?

What are the numbers that substantiate that statement? Exactly how much was received from the sales and how much was spent on the incoming players? Since the overall loss is an entirely theoretical accounting exercise what are readers supposed to do? Cry for Morgan? Or do we have yet another piece of evidence alleged financial genius of Moxey?

Jack the Hat

Lakeside,

F.F.P.I. will soon get at the true figures.

Heaven help wo1-Ves.

BOING~~~~BOING~~~~J♣H.

Mensa Wolves

I fail to see how there was only a £5.7m surplus in transfer-fee profit?

Fletcher, Jarvis, Kightly and others brought in circa £25m?

Sako, Doumbia, Boukari, Sigurdarsson, Peszko and others cost no more than £10m.

So where is this mystery £9m player the accountants think we've bought?

Taking the hit all at once sounds dramatic but is obviously in Morgan's interests. He can offset those losses against his hefty profits elsewhere, so It will cost him nothing.

In fact, as the loss is theoretical, he will have actually benefited by a few million.

tesswoody

I believe that the person in charge of the player's contracts should take a long hard look at this situation.

No one can blame a player's agent for organising a good deal. I suspect that Danny Batth's agent is doing just that at the moment!

Kevin Doyle is priceless in this division and even though he doesn't score as many goals, he plays with passion and experience. So don't knock him.

Maybe Sylvan Ebanks Blake can be persuaded to give Wolves his expertise for the remainder of the season.

Who knows he may find himself back in the Championship in May 2014!

Whoever is responsible for alienating the 'gang of 4' with bad press/gossip, then they only have themselves to blame. Prospective clubs will not be encouraged to take on so called 'trouble makers ' and dressing room dictators'. The reality is unfortunately that Wolves have to foot the wage bill! Don't forget we have Roger Johnson returning soon!

I worked in advertising for over 30 years and it seems to me the whole situation of players moving on after the relegation from the Championship was handled rather badly and to my mind somewhat ill mannered. I take a pride in my club and disliked the press releases and sensational news/gossip given at that time.

Hopefully management and all involved can learn from this.. but what an expensive lesson!

Here's to better days!

mac the wanderer

What a disgrace, I am told that MOXEY is one of BEST money men in the game what a load of COBBLERS, he is the man that has signed off the cheques for these most average of players.He calls himself THE FAT CONTROLER well Mr Moxey go and control somewhere else, MOVE ON, all you have given us for your LARGE SALARY is price increases and relegations, if that is one of the best god help the clubs with the worst, Mr REDROW if you read these comments I still maintain what I said to you before the leeds game last season that this great club will not improve significantly until you clear out the dead wood at top of the tree surely now is the time for MOXEY to get the chop, I WANT MOXEY OUT

carl wolves

A complete non-story put out by the club at a time when the fans attitude towards the owner and board is at an all time low, aimed to get us to get the violins out. The main part of the story is that the value of the playing squad has decreased by £27.5 million. Well of course it has. We've been relegated, sold players, released players, bought cheaper players and the value of most of the players here has decreased.

johnwaynessaddle

i see the electricians are pulling on the dark side to reconnect the alarm bells

kenco

I agree with Lakeside however you cant say mccarthey should of been sacked retrospectively Super Wolves. Mccarthey should of stayed till the end of the season. The issue was is he was still well supported by fans in the summer. Morgan didnt have the nerve of the southampton board. in terms of sales they made 27m if i remember correctly and they spent 11m on flops. Thelwell and solbakken obviously didnt see eye to eye. the thing is not last season its this year we have been hit massively with the departures of managers....saunders and solbakken with payouts. then the wages of sako, doyle and ohara. the add in the wages of flops hunt, seb, ward, johnson, henry, berra et etc....then the financial picture is crystal clear. UTW

Super Wolves

McCarthy should of been sacked sooner the albion game was a humiliating and the stand shouldn't of been built until the team was established in the premier end off.

Jacko

In any other privately run business, after such a catastrophic collapse in its business, the CEO would have been booted into touch.

In this business, the real shareholders ( long suffering supporters) can be ignored. What this country needs is football clubs run on the same model as Germany. The supporters own the clubs.

JJ

This is highlighting just how much the Premier league is getting away from the rest of the leagues and why clubs need to resort to risking absolutely everything to make any attempt to be successful. The situation is getting worse and worse and there is no doubt there will be more Portsmouth just waiting to happen. Give it a couple of decades and there wont be any point watching football any more.

Lakeside

Moxey and Morgan thought that their plans were financially risk-free and made a series of awful management decisions which has brought WWFC to the present situation. However, remember that it is only a "paper" loss based on assumed values of assets and assumed depreciation of the same, so the number has little meaning.

Yes, the PL is moving away from the other leagues but that is inevitable and the gap can only get worse. That is why it is unrealistic to expect WWFC and other smaller clubs to stay in the PL if or when they get there. Unless they are blessed with a very rich owner prepared to spend vast amounts of money they will never compete with the Russian and Arab backed clubs.

Jack the Hat

Lakeside,

Surely you are not implying wo1-Ves are a little club. I'm not having that, My club is smaller than your club.

Gorra loff ay ya?.

BOING~~~~BOING~~~~J♣H.

Sir Billy Quiet

And still Moxey remains as a highly paid employee of Wolverhampton Wanderers.

Good luck to Morgan. A fortune made through hard work and good business skills now being lost through backing an incompetent CEO. A fool and his money are easily parted.

Lakeside

Couldn't agree more SBQ. There are times when you have to question whether the Steve Morgan that owns Redrow is the same guy that owns WWFC because shocking decisions have been allowed that no business man would countenance.

Lifer

So Billy what would you have done if you were CEO? Leaving aside the appointment of TC, Mick, TC, solbakken, saunders, which was a board decision and not the CEO’s alone. Would you have refused to sign players chosen by these managers or match their contract demands, which more or less adds up to the same thing as they would not have signed? How about the ground redevelopment and academy investment would you have refused to release the money for these two things that the owner had clearly made their mind about?

sylvain2u

after taking this hit. I hope some lessons have been learnt.

1) Better selection process for appointing the team coach/manager. Both Stale and Deano were poor appointments.

2) having a clear vision for the club from youth upwards and the type of football you want to play.

3) Rewarding only the players who are performing consistently well higher wages and extensions to their contract.

4) Quality and competion for places- This club should never get into a position again where we have to rely on no better than average players , who get picked every week despite performing poorly .

5) Investment - You should never stop trying to improve and investing in better players. should we get into the championship we will need to improve the squad again just to compete.

Just think last season, If we had let go of the underpeforming players like edwards,foley, stearman,berra, henry,ward etc who were jaded and no longer up for the fight and spent say 7-8 million on decent defenders and a midfield ........... It makes you cry the level of incompetence.

Jack the Hat

sylvain2u,

That isn't just a hit as it has blown wo1-Ves backside away.

BOING~~~~BOING~~~~J♣H.

Wolfmaster2000

JACK BUM YEAST!!!

GERRIMOUT!!!

BeeCee

See your TESCO'S lost AGAIN Jack. Shouldn't you be concentrating on your own business not everyone else's?????

We Only Need One Half!

Do you know what a hypocrite is BeeCee? if your not sure, just take a look in the mirror.

BeeCee

Half a Brain WONHO. Takes one to find one!!!!!

I delight in taking the PEE out of your Papa.

Counting

A loss is a loss right? Lets look back as terrible as it might be. Look at the choices M & M made... Steve Bruce, seems to be doing better than Deano right? Mick M is a Championship Manager right? Stale Bacon, is Stale Bacon. The investments made were simply stupid. As if building a new stadium would keep us in the Premiership like osmosis. Even now do we the income or Bako? Oh shall I add the teams clip board man trying to keep the team up against Alex Ferguson and the like? This isn't going to change until Morgan sells out. Both Moxey and Jackett are yes men. The problem mainly is that Morgan wants to play with the big boys and thinks he can....dreamin"

martinfrommolineux

This joker really does take the biscuit. Just two seasons ago we were in the Premier League and could and should still be there now picking up £100m plus every season from TV etc. Instead of which and solely as a result of incredibly stupid decisions taken by our owner and CEO eg building a new stand that wasn't needed rather than investing in the team, keeping a manager who was well beyond his 'sell by' date and then replacing him with a trio of complete football buffoons, we now find ourselves in the Third Division. Hopefully we will regain Championship status next season but I don't ever expect to see my beloved Wolves in the top flight again and all as a result of gross mismanagement. And now Morgan expects us to be grateful that he is remaining committed to us, with his track record to date that should give no-one any comfort!

Wolfman

HOW REFRESHING IT WOULD BE IF EVERYONE GOT PAID ON RESULTS AND THIS WAS LINKED INTO ENTRANCE FEES........DREAM-LAND!

Lakeside

I cannot reply directly to Jack the Hat but in all seriousness I wonder whether Wolves, Albion or any provincial club such as Hull, Norwich or Stoke can survive in Premier League in the long term. London and the M62 axis are the growth areas economically and will therefore see the highest numbers of higher wage earners. This demographic automatically attracts the bigger owners and sponsors, pays better player wages and so the cycle continues.

Unfortunately for Wolves and other West Midlands clubs the economic climate will always hold back wages of the potential audience, thus reducing possible crowd revenue and reducing the economic attractiveness of these clubs to wealthy owners. Boing-boing may well become a catchphrase for a lot of provincial clubs, not just the striped one.

paul

IF Morgan had spent an extra 27m on players we might still be in the prem and still getting its riches, Its his club so lets blame the captain of the sinking ship. I do not think we will ever play at the top again under his ownership, we will just be a championship club until he gets fed up.

toonwolf

JACK THE HAT why dont you do us all a favour and save ya mutterings for the sandwell town pages.Loads of empty seats for the visit of an elite premier side with a full away support i hasten to add and a high earning striker who cant hit a barn door 25/1 for relegation is very tempting boinggggggggggggggggggggggggggggggggggggggggggggggggggg said zeberdee jack whatever you do whoever you buy and whatever you win you will always be in our shadow

Putza Shiftin

Paul - If Morgan had spent another £27m on players identified by Mick and Stale, he would have wasted another £27m. Look at their signings on the whole!

It's not about how much you spend, it's how wisely you spend it and that depends on who is deciding on the targets as well as negotiating the transfer fees and contracts.

Mick wasted a lot of money in the transfer market, as did Stale and the contracts are presumably down to Moxey.

paul

Putza look at facts Fletcher, Jarvis, etc all prem players just needed 2 or 3 more good buys and we would have still been there, by not investing in more top players has cost him 60m in lost sky money, and another 30m plus in gate money, what a way to run a football club, and to top it all we have a lop sided ground that will never get finished. by the time any rebuild starts the new stand will look old and tatty just like the steve bull stand looked like the last time Sir Jack rebuilt, but at least he finished his rebuild without leaving it looking stupid.