Wolves financial results reveal £18.4m profit during 2020/1
Wolves have revealed a profit of £18.4m million for their last financial year - with owner Fosun reaffirming their commitment to the club by effectively writing off £126m in loans.
The results cover the year to the end of May 2021, - which saw all league games played behind closed doors due to Covid-19, except for the final home game of the season, which was played in front of a reduced crowd of 4,500.
Wolves said the loss of income from having no supporters at games and deferred broadcasting revenues are reflected in the results.
"Such circumstances resulted in permanent losses to matchday revenue streams, such as ticketing, corporate hospitality, matchday catering, sponsorship, advertising, mascot experiences and matchday programmes," the club said in a statement.
The news comes a day after Premier League rivals Villa revealed losses of £37m for the same period.
Wolves, however, were in the black and despite the effects of the pandemic, Wolves saw overall commercial revenue increase to £194m from 132m in 2020.
However, they spent £10m more on players than was brought in through sales in a period which saw the likes of Diogo Jota, Matt Doherty and Helder Costa leave Molineux.
Some £60.8m was generated through player sales but £71.5m was spent on new signings, including Fabio SIlva, Nelson Semedo, Ki-Jana Hoever and Fernando Marcal.
However, in what the club described as a 'show of commitment from ownership group Fosun', the Chinese conglomerate turned £126.5m of loans that it had made to the club into equity in the business. That effectively writes off the debt burden owed by the club to the Chinese owners.
The profit made by the club in 2020-21 follows a £39m loss in the previous financial year.
