The Swiss Ramble on Wolves' finances

[Deutsch Wolf]

http://swissramble.blogspot.co.uk/2016/06/wolverhampton-wanderers-after-gold-rush.html

His stuff's always a good read.

Essentially confirms that we don't need to sell anyone right now to get along, what's left from Afobe/Stearman will more than cover that.

Also confirming that dicking around going nowhere in the Championship is a fundamentally flawed concept, anyone who reckoned that was 'better' a few years ago should have a quick re-assess of that statement.

Still think the stadium rebuild affecting recruitment is a red herring. What that cost would have bought us relatively little in players and we made two huge (for us) signings that summer anyway. The training ground needed doing and should pay off as time goes on.

 

[wordsleywolf]

Decent read though he's only really added figures to what most suspected. The Money for the new stand would have brought us two top players (though looking at the ones we splashed out on that year perhaps the bricks were a better investment). Still think the Steve Bull should have had the first revamp though.
Morgan doesn't strike me as the sort of guy who speculates big money on what is at best a coin flip, so don't expect a change of investment strategy soon, even if he changed his mind on the sale.

 

[Law's Bus]

Still think the Steve Bull should have had the first revamp though.

It was necessary to get the old North Bank out of the way and moved into the right place before work could start on the Steve Bull.

 

[Tony Towner]

Thanks for the link Dan. The shocker for me is that we were the 15th highest payers the season before last. Since then Sako who was by far our biggest earner has gone and we finished 14th. Now as Moxey is on record as saying there is a strong correlation between wage bill and league position his Top 6 rhetoric is exactly that, which I doubt he even believes himself. Just a soundbite for the very few believers left out there.

 

[Parkins left foot]

Thanks for the link Dan. The shocker for me is that we were the 15th highest payers the season before last. Since then Sako who was by far our biggest earner has gone and we finished 14th. Now as Moxey is on record as saying there is a strong correlation between wage bill and league position his Top 6 rhetoric is exactly that, which I doubt he even believes himself. Just a soundbite for the very few believers left out there.

Shows the danger of letting accountants run a business - few (& I would include myself in that having been involved in that area all my working life) have the vision to take the calculated gamble that is sometimes necessary to make the business a sucess.

As long as the books balance & there is a profit (even if small) at the end of the year they feel they have done a good job.

As a Bank Manager I was always wary of firms run by that criteria as they tend to become moribund, which is roughly what we are at the moment!

 

[Norman Deeley]

Good post, Parkin - and I think 'moribund' is a very polite way of putting it...

 

[DejaVuWolf]

I too, very much like the connotations that the term “moribund” throw up. What’s it mean?

 

[Parkins left foot]

Good post, Parkin - and I think 'moribund' is a very polite way of putting it...

I too, very much like the connotations that the term “moribund” throw up. What’s it mean?

The 'polite' method is merely to educate the masses on the breadth of the english language rather than just putting a string of four letter words in :icon_smile:

For the meaning of moribund - see this

Certainly the first definition, though hopefully not the second!

 

[Penk Wolf]

http://swissramble.blogspot.co.uk/2016/06/wolverhampton-wanderers-after-gold-rush.html

His stuff's always a good read.

Essentially confirms that we don't need to sell anyone right now to get along, what's left from Afobe/Stearman will more than cover that.

Also confirming that dicking around going nowhere in the Championship is a fundamentally flawed concept, anyone who reckoned that was 'better' a few years ago should have a quick re-assess of that statement.

Still think the stadium rebuild affecting recruitment is a red herring. What that cost would have bought us relatively little in players and we made two huge (for us) signings that summer anyway. The training ground needed doing and should pay off as time goes on.

Really? It confirms that we have a £10m hole to find this season (16/17).

I'll take your third paragraph though. (-;

 

[Deutsch Wolf]

We've only filed accounts up to 31 May 2015. Therefore none of the money received for Stearman and Afobe has been taken into account yet, that makes up the shortfall as well as the wage bill being further reduced with the likes of Sigurdarson/Boukari/Golbourne (who were presumably on decent money) leaving and McDonald probably off as well.

 

[Johnny75]

Really? It confirms that we have a £10m hole to find this season (16/17).

I'll take your third paragraph though. (-;

It's £7m isn't it? As well as the transfer monies Deutsch pointed out you also have £3m of new TV money coming from the PL. That would boost the cash coffers quite nicely as well as the substantial reduction in the wage bill which also wasn't accounted for and DW hasn't mentioned which is Stearman, Afobe and Sako - 3 of the heftiest earners and probably a good £2.5m chunk of the wage bill between them.

 

[Penk Wolf]

We've only filed accounts up to 31 May 2015. Therefore none of the money received for Stearman and Afobe has been taken into account yet, that makes up the shortfall as well as the wage bill being further reduced with the likes of Sigurdarson/Boukari/Golbourne (who were presumably on decent money) leaving and McDonald probably off as well.

That will be used in last season, which frankly I no longer care about. My concern is this season where there will be at least a £10m gap, which means it will plugged by selling players and us having an even shitter team.

 

[Johnny75]

That will be used in last season, which frankly I no longer care about. My concern is this season where there will be at least a £10m gap, which means it will plugged by selling players and us having an even $#@!ter team.

I think your maths is wrong here Penk. I think you're right about the selling players and shitter team though.

 

[Deutsch Wolf]

We still had parachute money last season which will be in the next set of accounts released. The "gap" is down to us losing the parachute money for 2016/17 - it's covered by those sales and wage bill reductions - we haven't spent that money.

If we were to sell Iorfa this summer then theoretically that money should be available to spend. We aren't in a position at this point of having to sell players just to stand still.

 

[Johnny75]

We still had parachute money last season which will be in the next set of accounts released. The "gap" is down to us losing the parachute money for 2016/17 - it's covered by those sales and wage bill reductions - we haven't spent that money.

If we were to sell Iorfa this summer then theoretically that money should be available to spend. We aren't in a position at this point of having to sell players just to stand still.

I would add that we have taken roughly £5m off the wage bill in the last season (and that's accounting for the purchase of Mason, Williamson and Coady).

 

[Penk Wolf]

We still had parachute money last season which will be in the next set of accounts released. The "gap" is down to us losing the parachute money for 2016/17 - it's covered by those sales and wage bill reductions - we haven't spent that money.

If we were to sell Iorfa this summer then theoretically that money should be available to spend. We aren't in a position at this point of having to sell players just to stand still.

The parachute payment will cover the provisions released.

 

[Penk Wolf]

I think your maths is wrong here Penk. I think you're right about the selling players and shitter team though.

I think I've under estimated when you take into account:

'However, it has clearly distorted the financial results, e.g. the 2014/15 reported profit of £0.7 million would have been a £5.9 million loss without the provision release of £6.7 million. Similarly, the 2013/14 profit of £8.5 million would have been a £1.7 million loss without a £10.2 million provision release. On the other hand, the massive £33.1 million loss in 2012/13 would have been only £5.6 million if the restructuring provision had not been created.'

 

[Deutsch Wolf]

So we have a loss of just under £6m to balance out. We have since had a year's parachute money, a negative transfer spend of somewhere in the region of £7m, the wage bill went down significantly compared to 2014/15...where's the gap that needs filling with further sales now just to stay afloat?

 

[Parkins left foot]

So we have a loss of just under £6m to balance out. We have since had a year's parachute money, a negative transfer spend of somewhere in the region of £7m, the wage bill went down significantly compared to 2014/15...where's the gap that needs filling with further sales now just to stay afloat?

There isn't one, though thats not to say there won't be sales as unless the club is sold then they may be planning for the year after when there may be a hole to fill

 

[Penk Wolf]

So we have a loss of just under £6m to balance out. We have since had a year's parachute money, a negative transfer spend of somewhere in the region of £7m, the wage bill went down significantly compared to 2014/15...where's the gap that needs filling with further sales now just to stay afloat?

The loss of £6m included a £10m parachute payment, so start at £16m and now take off your reduced wage bill, etc.