Wolves' losses last season

[LeadBelly]

" Wolverhampton Wanderers lost more than £1m a week during their Championship-winning campaign last season.Wolves recorded a pre-tax loss of £57.16m for the year ending 2017-18, more than double the £23.18m they lost in the previous 12 months."

https://www.bbc.co.uk/sport/football/47453599

Big gamble but it got them up into the promised land. I guess there may be fuller figures somewhere - that would be interesting reading to see where the funding /debt support came from.

[Funkydrummer]

It's yet another foreigner bailing them out.

It'll end in tears, someday.

[Chester Perry]

They have done a better job than QPR in keeping up after the gamble but combined losses of £74.5m over last three championship seasons (they actually made a profit in 2015/16 should see them subject to FFP fines - whether that will happen is another matter entirely

https://twitter.com/swissramble/status/ ... 80?lang=en" onclick="window.open(this.href);return false;

[kaptin1]

If a wealthy owner wants to pour loads of their own money into a black hole then I have no problem with that.

However, where it becomes an issue is if they do so by loading the club up with debt (more fool the lenders) and then walk away when they lose interest, leaving the club in a financial mess and others to pick up the pieces.

I’ve also said before that I think clubs should have to hold liquid assets (cash or government bonds) on balance sheet to cover contractual liabilities. So if you want to sign a player on a five year deal on big money then that is fine as long as the club holds, for arguments sake, a sum equivalent to half of that cost on their balance sheet.

This would then provide an additional buffer (over and above parachute payments) if they lose revenue due to being relegated (or dropping out of the Champions League). Of course it would also then make it even more costly for rich owners with deep pockets.

[LeadBelly]

Their full figures for 12m to May 2018 (commented on by BBC) are posted here now: https://beta.companieshouse.gov.uk/comp ... ng-history

My maths is OK but I'm no accountant- but it looks like they have £122m of debt (against £13m current assets) with £75m now owed to their parent company.

[Funkydrummer]

I'm no accountant either, but I would have thought that there assets were greater than £13 million.

[kaptin1]

Net liabilities of £24m so technically insolvent but presumably not actually insolvent because it has a wealthy backer who is willing to stand its corner and is also generating enough cash flow to pay its liabilities as they fall due. However, if the owner decides to pull up stumps then it is knackered.

[IanMcL]

Long term project. Buy big and sell on when proven to be value added....bit like us but with foreign players.

[nil_desperandum]

I'm no accountant either, but I would have thought that there assets were greater than £13 million.

I wonder how this figure is reached?
First XI alone must be worth around £100,000,000.

[kaptin1]

I wonder how this figure is reached?
First XI alone must be worth around £100,000,000.

The £13m is just current assets. Total assets are about £106m which includes £38m of intangible assets (player registrations). Player registrations are amortised over their life, so in simple terms if the player registration costs you £10m and he has a five year contract then you would write it down by £2m per annum. If you then sold the player for £15m after two years you would book a profit on sale of £9m, being the £15m transfer price less £6m, which is the book value of the player’s registration after two years.

[Royboyclaret]

I wonder how this figure is reached?
First XI alone must be worth around £100,000,000.

The £13m figure represents Current Assets only which comprised £10.4m Debtors (money owed to the Club) and Cash at Bank of £2.6m.

The asset value of the players can be found under Intangible Assets and a figure at Jun'18 of £61.9m Gross Cost including additions for the year of £24.3m. I think that last figure will include the likes of Saiss, Cavaleiro, Neves & Costa. Some of the even higher value signings arrived after the end of the financial year.

In addition to that Tangible Assets ( ground, other buildings etc.) are valued at £54.5m all of which takes the Total Asset Value of Wolves to well over £100m.

Hope that helps.

[Royboyclaret]

Beat me to it kaptin !!

[Funkydrummer]

Thanks chaps, clear as mud.

[LeadBelly]

Staff costs were £50.7 million; up from £28.2 million (and presumably up further this season)
Turnover was £26.4 m; up from £23.75 m

So the ratio went up from a slightly large 119% to 192%.

Presumably their income will be up more towards £150 million this season so I daresay they'll get a profit, even with salaries/other costs up. Doubt they'll be making enough to eat significantly into the debt but it's probably not much above the Prem average & I think the debt to the parent Co. is interest free.

[agreenwood]

Surprisingly low wages considering the type of players on their books last year.

[Royboyclaret]

Surprisingly low wages considering the type of players on their books last year.

Suspect that Wolves have played this very cleverly in that players of the ilk of Costa, Neves & Cavaleiro will have been convinced to join the Club on the back of a very persuasive argument that promotion, with that calibre of player, was almost a certainty.

That's how it proved and you can bet that their Wage bill is now approaching £100m, pretty much double that in their last set of accounts. No matter, Turnover will indeed be circa £150m particularly with the merit payment for for finishing 7th, and for sure the gamble has well and truly paid off.

In short, Wolves have played a blinder and now they look unbelievably financially strong to retain their position at the top table.

[agreenwood]

Helps when you’ve got a “super agent” onboard.

[Royboyclaret]

Helps when you’ve got a “super agent” onboard.

Indeed.

And don't be at all surprised to see them strenghten even more in the summer, with further big name players.

[cblantfanclub]

Just a reminder that the current owners made a public statement that money was to be no object in assembling a team to win the premiership.
Absolutely nothing clever about them. Sad reflection on the mess that has become the Premiership - biggest chequebook wins eventually.
https://www.mirror.co.uk/sport/football ... o-11507261" onclick="window.open(this.href);return false;

[SGr]

Smart investments were made to be fair. Didn’t waste that money on aging “proven” championship players, like Villa did with McCormack, and Derby with Bradley Johnson. Neves for example, one of the best players that league has seen and has so so much sell on potential.

If you’re going to “buy the league”, do it right

[SGr]

Just a reminder that the current owners made a public statement that money was to be no object in assembling a team to win the premiership.
Absolutely nothing clever about them. Sad reflection on the mess that has become the Premiership - biggest chequebook wins eventually.
https://www.mirror.co.uk/sport/football ... o-11507261" onclick="window.open(this.href);return false;

Nothing messy about spending heavily on young players with serious potential to improve in this division and can turn a profit on in the end.

The real mess is when Chelsea spend £35m on Danny Drinkwater, £25m on Zappacosta, etc. Or Fulham £22m on that nothing player Anguissa. Wolves’ model is smarter than people are giving credit for: Neves now a £40-50m player for example.

[tim_noone]

Nothing messy about spending heavily on young players with serious potential to improve in this division and can turn a profit on in the end.

The real mess is when Chelsea spend £35m on Danny Drinkwater, £25m on Zappacosta, etc. Or Fulham £22m on that nothing player Anguissa. Wolves’ model is smarter than people are giving credit for: Neves now a £40-50m player for example.

Neves must be Double that...having seen figures on here for McNeil to be worth £40m

[Vegas Claret]

**** Wolves, a once great club but now represent everything that is wrong with modern day football. Same as clubs like City and Chelsea, the big 6 will be the big 7

[Chester Perry]

Wolves like City and Chelsea will find themselves in hot water with the footballing authorities - FFP will catch up with them I have no doubt just do not know when also there are still a lot of questions around the club's and clubs owners relationship with Mendes irrespective of the all clear from the football league last year.

also we all know Mendes likes a transfer every 2-3 years for his players (keeps the money coming in for him) Neves is now firmly in the sights of a few big clubs across this league and continent.