Wolves Make Loss - 24/03/2007

Coca-Cola Championship side Wolverhampton Wanderers made an overall loss of £1.16m on a turnover of £23.8m in the year to 31 May 2006. There was an operating profit of £1.3m, but this was before charging £2.2m for player trading and amortisation. This year the club will not receive Premiership parachute payments yet the club expects to break even but that is after taking into consideration the sale of high value players as a consequence of an expected large operating loss of £3.2m. The club continues to have borrowings from its bankers and paid a net £218k in interest charges for this year. £1.8m was spent in the year for the second half of costs on the construction of the Sir Jack Hayward Training Ground. This is an expensive facility both in terms of construction and running costs, but is expected to pay off in the long run. The club has a very strong balance sheet with net assets totalling £34.3m including the Molineux Stadium, Aldersley Arena and the training ground. In many ways, Wolves is the classic case of a club trying to enter the Premiership while balancing the books.