top of page
< Back

Wolverhampton Wanderers Financial Results 2023/24

Season 2023/24 was Wolves sixth consecutive season in the premier league and are the seventh club to release their financial results.

Season 2023/24 was Wolves sixth consecutive season in the premier league and are the seventh club to release their financial results. After finishing 13th in season 2022/23, Wolves fell one place further to finish the season in 14th position, their lowest position since returning to the Premier League, although they did earn 5 points more than the previous campaign. There were signs of promise during the season, when they sat in 9th place in early March, but experienced a poor run of form in the closing weeks, with only one win in the final 10 games, and 7 defeats. A promising FA Cup run was ended in the Quarter Finals by Coventry in a dramatic cup game, finishing in a 2-3 defeat and Wolves exited the Carabao cub in round 3. Financially Wolves have had their challenges. Season 2023/24 comes off the back of two seasons of heavy losses totaling over £110 million and some significant investment in players (over £200 million in season 2022/23). However, this had not translated to success on the pitch, and season 2023/24 saw the club tighten its financial belt so as to ensure they stayed within profit and sustainability rules. Matchday Finance's unique platform puts the power of analysis in your hands. Whether you're a fan, journalist, industry expert, or investor, all the key numbers are right at your fingertips. Overview of Wolves Financial Results 2023/24 Turnover for the 2023/24 season reached £178 million, an increase of £10 million from the previous year, primarily due to higher broadcast distributions from more televised games. With no salary increases, reduced operating costs, and a strong £64 million return from player sales, losses decreased to £14 million, down from £67 million the previous season. 2023/24 Financial Highlights: Turnover rose by £10 million to £178 million, mainly driven by 5 additional televised games, boosting league-distributed facility fees. Matchday revenue increased by 7%, with no change to commercial revenue. Total staff costs dropped by £15 million, primarily due to reduced amortisation following significant player sales. Player sales of Nunes, Neves, Collins, and others resulted in a £65 million profit. Losses decreased to £14 million (down from £67 million), keeping the club in compliance with profit and sustainability regulations (PSR). Investment in the squad totaled £47 million, significantly lower than the £123 million generated from player sales, resulting in the lowest net spend in the league. Debt levels reduced as £79 million of debt owed to parent company Fosun International was converted into equity. Looking ahead to the 2024/25 season, the sale of Nunes and Kilman is expected to generate significant profits, however revenue may decline, with Wolves sitting in 17th place at the time of this report and facing a relegation battle, Next Read For a full breakdown of the Premier League’s 2023/24 financial results, check out our recent blog: Premier League Financial Results Season 2023/24 Wolves Turnover Like many of the smaller clubs in the Premier League, Wolves' turnover is heavily reliant on their league position and the corresponding distributions from the Premier League. In the 2023/24 season, £133 million of their revenue came from this, accounting for 75% of their total income. Their matchday revenue, at £16.2 million, ranks 13th in the league, while their commercial revenue of £27 million is roughly 10% of what the top clubs generate. Overall, Wolves' total revenue of £178 million places them 14th in the league. In recent seasons, Wolves have seen little growth in their major revenue streams. With low league finishes, no European competition and a relatively small stadium that is full to capacity for most games, it remains challenging for the club to significantly boost its revenue. Matchday Revenue Matchday revenue is influenced by factors such as the number of home games, average attendance, ticket prices, and the club's ability to generate income from hospitality events and corporate boxes. The only exception to this is domestic cup matches, where revenue is shared between the clubs and the FA. Molineux, Wolves' home ground, has a capacity of 31,750 and sells out for all premier league games. There are long-term plans to expand the stadium to a 50,000 capacity, though these plans are not yet concrete, with the current focus being on squad investment. Wolves also can't command the same ticket prices as the top clubs, with revenue per home game just over £700k and an average revenue per fan of £24.50. While this places them at the lower end of the league, it is comparable to local rivals Aston Villa and Everton, and ahead of clubs like Nottingham Forest and Burnley. With one extra home game compared to the previous season and a slight increase in revenue per game, Wolves saw a 7% increase in matchday revenue, reaching £16.2 million. Their strong FA Cup run likely contributed to this boost, as these games generate higher returns, which are shared between the clubs involved. The chart below shows that Wolves rank 13th in the league for matchday revenue. Broadcast Revenue Broadcast revenue mainly comes from central distribution by the Premier League, UEFA (if the club participates in European competitions, which Wolves did not), and revenue generated through the club's media platform. For Wolves, 99% of their broadcast revenue is derived from Premier League distributions. The chart below shows the distribution by club for the 2023/24 season. A significant 67% of the revenue is evenly shared among all clubs, with the remainder allocated based on league position and the number of televised live games. Each league position earns an additional £2.8 million, and each live game generates around £900k. Wolves earned £95.1 million from the equal share, £19.7 million from finishing 14th in the league, and £15.2 million from 17 live games. This represents a slight increase from the previous season. Commerical Revenue Commercial revenue, which includes sponsorships, retail merchandising, tours, and other activities, totaled £27 million, slightly down from the previous season. Of this, sponsorship revenue reached £14.5 million, up 9%, while other commercial revenue decreased by £1.5 million to £12.3 million. It’s worth noting that Wolves outsourced their retail operations, which likely contributed to this decline, though this should be offset by reduced operating costs. The earnings gap between the "big six" and the rest of the league is clearly evident when examining sponsorship revenue. While only six clubs report sponsorship revenue separately, the disparity is striking. The big six clubs typically secure sponsorship deals worth £50 million or more for both front-of-shirt sponsors and kit suppliers, whereas smaller clubs, like Wolves, may earn £10 million or less. Wolves rank 14th in the league for total commercial revenue, earning less than one-tenth of what clubs like Manchester City and Manchester United generate. Wolves Staff Costs The 2023/24 season saw significant player movement, with notable departures including Neves, Nunes, and Collins, all of whom commanded substantial transfer fees. Wolves acknowledge that these sales were necessary to comply with profit and sustainability regulations, as they helped reduce overall staff costs and generated considerable one-off profits. Despite this, Wolves still managed to invest in players, with Bellegarde and Bueno joining the club. As a result of this activity, salaries and wages remained at the previous season's level of £142 million, but amortisation and impairment costs—the write-down of player acquisition costs—dropped from £82 million to £67 million, marking a £15 million reduction. This decrease was partly due to the sale of Nunes, who, as a relatively recent acquisition, had a high amortization charge. Overall, Wolves' total staff costs amounted to £206 million, ranking 11th in the league. Although overall staff costs have decreased, they remain higher than the club's turnover by £29 million. This staff costs to turnover ratio at 116% is concerning for any club, as it suggests a high probability that players will need to be sold to stay within PSR. Wolves are not alone in this challenge; we estimate that they are one of eight clubs whose staff costs exceed their turnover. Note that the other clubs in this list have yet to publish their accounts and are therefore based on matchday finance estimates. This marks the fifth consecutive season in which staff costs have exceeded turnover, a challenge that is difficult for Wolves to address. They can only materially increase turnover through higher league finishes (which seems unlikely this year) or, ultimately, entry into European competitions. Whether the Premier League continues with PSR or introduces the proposed squad cost ratio control, Wolves will need to either reduce staff costs or continue selling players profitably. Both options are likely to impact on-pitch performance. Profit on Player Sales As mentioned, Wolves made significant player sales in the 2023/24 season, generating £64 million in profits. This was an essential move for the club to stay within PSR after two seasons of heavy losses. With staff costs before player sales consistently exceeding 100% for the past five years, player sales have been crucial to keeping the club’s cost ratio in check. Over the last five seasons, these sales have generated nearly £200 million, bringing the cost ratio to more acceptable levels. Wolves are not alone in their reliance on player sales to stay within PSR guidelines. As shown in the chart below, total profit from player sales in 2023/24 saw a remarkable 70% increase compared to the previous season. Wolves Profit and Loss Wolves, like many mid-sized and smaller clubs, face the challenge of balancing investment in the squad with maintaining compliance with PSR, all while hoping for success on the pitch. Clubs like Brighton, Brentford, and Bournemouth have managed to strike this balance in recent seasons, and Nottingham Forest is leading the way this season. However, Wolves, with higher staff costs than most of these clubs, have not achieved the same level of success. Since their impressive 7th-place finishes in 2019 and 2020, Wolves have remained in the lower half of the table and are currently 17th, just above the relegation zone. In recent seasons, the club has recorded significant losses of £67 million and £46 million, While total costs were reduced from the previous season, and player sales brought in £64 million, Wolves still recorded a loss of £14 million. However, this loss was at a level that kept them in compliance with PSR regulations. It's still early in the reporting season to compare profits across clubs, but based on the eight published accounts so far, with the rest being estimates, we expect Wolves to rank 9th in the league for profit. Further player sales in the 2024/25 season, with Neto and Kilman departing, is expected to generate strong player trading profits (around £80 million) and should provide the club with some financial breathing space. Player Trading As previously mentioned, player trading has been critical for Wolves in staying within PSR guidelines. This is evident from their net transfer spend (player acquisitions minus disposals) of -£75 million, likely the lowest in the league by some margin. In season 2023/24 they saw the departure of key players such as Nunes, Neves, Collins, Coady, and Jimenez, generating a total of £123 million in sales, with £47 million invested in new signings, with Bellegarde, Bueno, and Traore joining the club. In the 2024/25 season, Wolves have increased their investment, bringing in nine new signings for around £100 million. However, this season has also seen the departure of Neto and Kilman, with the two generating around £80 million in combined transfer fees, most of which will be recorded as profit. However, this has not improved their on-pitch performance, with Wolves currently sitting in 17th place, and have had another change in manager. Football Debt During the season, £80 million of an outstanding loan to parent company Fosun was capitalized as equity, leaving only £2.7 million still owed. This had no cash flow impact but does reduce the perceived risk of the outstanding debt. The club still has a £100 million bank loan, which is their principal source of debt and is repayable over five years, but they did settle a £14 million short-term bank loan. Wolves also carry a large outstanding player trading debt, primarily due to previous season player acquisitions. This debt amounts to £141 million, with £82 million of it needing to be settled in this current year. This debt is offset by £64 million due from other clubs for player sales. Cash Flow Wolves reported negative operating cash flow for the 2023/24 season, (the cash generated from normal operations and before any investments in players, assets, or changes in funding). This is reflective of their high costs relative to turnover. However, cash from player sales, meant they need no additional funding during the season. Wolves Financial Outlook Wolves' financial situation has improved thanks to strict cost controls and profits generated from player sales. However, staff costs are likely to remain above 100% of turnover, meaning the club will continue to rely on selling players to balance the books and stay within PSR guidelines. A potential lower league finish will also reduce broadcast income. The club has invested over £100 million in the squad this season but continues to lose key players such as Neto and Kilman. The biggest challenge now lies on the pitch, with Wolves sitting 17th in the league at the time of this report, just 5 points above the relegation zone. Relegation would obviously have a significant impact on the club's financial position. To access all the numbers and receive regular updates, sign up to the Matchday Finance platform.

wolverhampton-wanderers-financial-results-2023-24

bottom of page