Wolves have released headline financial information for the year ending 31st May 2022, confirming a net loss of £46.1m.
The accounts reflect the 2021/22 season, which was the sixth under the ownership of Fosun and the fourth consecutive season in the Premier League.
In terms of results on the pitch, the team improved on the previous season with 51 points and a 10th-place finish, the third-highest finish the club has achieved since 1980.
Revenue for the year under review was the first since the 2018/19 season not directly impacted by the Covid-19 pandemic; however, there was still a degree of impact to matchday operations.
There was also a degree of impact on funds available to invest in the first team squad whilst ensuring continued compliance to both Premier League Profit & Sustainability and the UEFA settlement agreement, with compliance and exit from the latter formally issued on 11th March 2022.
Turnover for the year reached £165.7m, less than the most recent directly comparable season in 2018/19, in which £172.5m revenue was achieved. This reduction is primarily due to a lower Premier League merit payment because of a lower final league position (10th as opposed to 7th), and a less successful FA Cup run (fourth round exit versus a semi-final exit).
Player trading in the year generated a net loss of £50.1m (£10.7m loss in 2021). Income of £15m was generated through the disposal of players’ registrations, driven by the sales of Rui Patricio, Rafa Mir, Owen Otasowie and crystalising contingent appearance and goal related fees for Diogo Jota.
However, this was outweighed by higher amortisation and impairment charges on player registrations, totalling £65.1m, driven by continued investment in the first-team and academy, including the acquisitions of Jose Sa, Rayan Ait-Nouri, Yerson Mosquera and Chiquinho amongst others.
Overall, the financial loss for the year, after interest and tax, was £46.1m (profit of £18.4m in 2021).
The group strategic report, signed by director Matt Wild, read: “Going forward, the aim is for the group to establish themselves as regular challengers for qualification to European club competition. The directors have a continued commitment to continuously improve the group, from both a footballing and wider operational and strategic perspective. Supported by continued success in the Premier League and cup competitions, both European and domestic, the directors consider prospects for the company to be excellent.”
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