Wolverhampton Wanderers revealed on Tuesday morning a pre-tax loss of £57.1m for the year running to May 2018. This figure is double the amount Chinese owners Fosun International lost the previous season.
The news adds an element of worry to what was an incredibly successful season for the Midlands club, who topped the Championship with 99 points. The team have also adapted to the Premier League this season fantastically, garnering a reputation for taking points off the top six, as well as knocking Liverpool out the FA Cup.
Wolves did manage a turnover of £26.4m last year, and also received an increase of £1.3m in ticketing income. A statement has been released on the club’s website, which attributes the increased expenditure on players, wages and promotion bonuses.
This is hardly surprising with high-profile European players such as Ruben Neves and Diogo Jota deciding to join Portuguese counterpart Nuno Espirito Santo, and be part of Wolves’ project.
The club’s statement also said: “Wolves’ owners are committed to continuously improving the club, from both a footballing and wider operational and strategic perspective”.
The club certainly don’t seem panicked by their finances, having spent £109m on players since reaching the Premier League. This business plan is certainly working at the moment, with the club sitting pretty in 7th place.
They also find themselves with a quarter-final FA Cup tie at home to Manchester United to look forward to. While the 13-point gap to the top six is unassailable this season, for a newly promoted club it is very encouraging.
This financial news could be further evidence that some clubs feel the way to reach the top bracket of football is to spend big, take a short-term loss, and rely on results on the pitch to put you in a position where the money keeps coming in.
This season, Liverpool clearly felt the only way to close the points gap to Manchester City is to spend big, with Alisson, Fabinho, Naby Keita and Xherdan Shaqiri all coming in.
It is likely that Wolves will not feel any repercussions of this loss, providing the results on the pitch continue in the same vein.