Wolves Reveal Significant Losses

English League One Wolverhampton Wanderers have announced losses of £33.1million for the year ending May 2013 a major change from their £2.2m profit 12 months ago.

The Black Country outfit have been hit hard by back-to-back relegations from the Premier League to League One, where they are currently plying their trade for the first time since 1989.

Turnover reduced to £32.1m in comparison to the year ended 2012 (£60.6m), representing a £28.5m fall in income largely due to the loss of Premier League status and the vast financial rewards that go with it.

Total operating costs for 2013 were reduced to £42.8m (£51.3m), helped further by a net profit in player sales of £4.9m thanks to the departures of Steven Fletcher, Matt Jarvis and Michael Kightly, which reduced the club’s overall operating loss to £5.7m (£1.8m profit in 2012).

But, with relegation to League One confirmed in May, Wanderers’ board felt it appropriate and prudent to make a provision of £12.5m as well as an additional £15m to cope in one hit with the decrease in value of its squad following successive relegations.

A statement on Wolves’ official website read: “These adjustments, which represent good practice under UK accounting legislation, were considered essential steps to address the significant negative financial impact of consecutive relegations.

“As a result, the overall loss, after these provisions and net interest, was £33.1m (2012 profit: £2.2m).”