In the current financial climate any profit is a good thing, especially when it comes to football clubs.
I’m no financial expert, but there are not many Premier League football clubs, or in fact many English football clubs that can announce they made a profit of £2.2million for the financial year.
Add in the fact that last year we made a profit of £9.1million and the figures over the past 24 months look good.
Yes the profit might have declined by £7million over the past year, however there was a lot of investment in the squad over the past 12 months with the signings of Steven Fletcher, Stephen Hunt, Adam Hammill, Steven Mouyoloko and Jelle Van Damme and of course the season-long loans of Michael Mancienne and Jamie O`Hara.
It’s impossible to tell how much was spent due to our transfer fees always being undisclosed, but even a conservative estimate would be in the region of upwards of £15million and on top of the fees we also handed out improved long-term contracts to a number of players, which helped operating costs increase from £29.8million in 2009-10 to £37.9million this year.
So overall the figures look promising, which shows that at least off the field, the Wolves board of directors appear to know what they are doing.
“These are solid results, which reflect the club`s strong financial health. We`re committed to running the club on this firm financial footing, while continually looking to invest in the first team.’ Wolves chief executive Jez Moxey told the Express & Star.
Wolves will also continue to invest in the infrastructure of the club with the £18million redevelopment of the Stan Cullis Stand and the £6million upgrade of the Compton Park training ground.
Moxey added: “The investments in infrastructure have both been made with the future success of the first team in mind. Our aim to become a ‘Category 1` Premier League Football Academy puts the club in a good position to secure the best young talent in the face of intense competition from other teams.”
Vital Wolves Comment: As ever finding the balance between investing in the clubs infrastructure, has to be met by another investment in the first team to guarantee survival in the Premier League.
But overall these are positive results for Wolves fans, you only have to look as far as Rangers in Scotland and Portsmouth down south to see how bad things can be.
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