Wolves relegation sparks business worries

The economy in Wolverhampton will be hit and businesses may now withdraw from the city following Wolves' relegation from the Premier League, an expert in football finance has warned.

The drop will cost the club £4 million in commercial deals alone, said lecturer Andrew Jones, who warned the economy could also be slowed by a demoralised workforce.

Mr Jones, whose PHD is in football finance, said: "Studies suggest people work better if their team is doing well.

"There is a psychological effect on workers.

"It is a real boost for a city to have a Premier League club, it gives the club and the area a global audience.

"Without that global audience, advertisers may turn round and say 'sorry but we're not interested any more'.

"Wolverhampton companies like Carvers, for example, will continue to stay loyal but others may now withdraw. Wolves are looking at a hit for £4 million in commerical and sponsorship loss."

Mr Jones, an international business lecturer at the University of Wolverhampton, said it was vital for Wolves to win promotion either next season or the one after that. And he said future developments at Molineux, such as the re-building of the Steve Bull Stand, may suffer if that is not achieved.

"Wolves need to get out of the Championship next year or the year after that," he said.

"If that Premier League money is not coming in and gates are getting lower, then the cash losses rise.

"If that happens, then the redevelopment of the Steve Bull may go back. In the short to medium-term, I don't see that being completed.

"Wolves cannot become another Coventry, Derby or Forest. They need to follow in the footsteps of West Bromwich Albion, they shouldn't have to sell everybody.

"And they have been prepared for this and are financially sound.

"Hopefully, they will be able to win promotion again swiftly, although, of course, there is no guarantee."