Wolves Losses

[Belle_Vue]

Interesting point on the sky sports app, might not be relevant, but speaks in the way of the cost of relegation afyer charging into the prem.

Reported losses off 33.1 million pounds.

Now to me this goings to show 2 things.

How 20 million surely isn't enough to biy yourself into the premiership and keep you there.

And also that club now faces alot of problems, I'm glad for our stability!

[afro goal machine]

Saw it earlier, some folk are living in a dream world.

[BobG]

And they get significantly bigger crowds than us too. So more gate money, more advertising money and more meat pie money and programme too

BobG

[One_Matty_Lucas]

Wolves were a profitable Premiership team if I remember rightly.

[hoolahoop]

Wolves were a profitable Premiership team if I remember rightly.

So where do you think it's all gone wrong then ?

[wilts rover]

That Hoola is a very interesting question and opinion would appear to be divided on the answer. £27m of the 'losses' are not real losses at all, that is this money has not been spent anywhere, it is the loss in value of the players they had in the PL compared to the ones they have now. Then there is loss in tv revenue and £9m being spent on building an academy, financially they don't look too bad. Its only when you compare it with results on the pitch that you begin to wonder. The question is, will their long term aim of being a sustainable club, reducing costs and  bringing through their own academy players work?

http://www.expressandstar.com/sport/wolverhampton-wanderers-fc/2013/12/05/steve-morgan-committed-to-wolves-future-despite-losses/

[big fat yorkshire pudding]

Yes it's an accounting loss really, not an actual financial one so to speak.  But the loss has to be filtered in at some point, it's just the write off of the assets (footballers are traded as intangible assets, ie they are classed as being valued at cost value less amortisation).

What that actually means is that a footballer such as Wayne Rooney was originally traded as a 30M asset and that has decreased over time in line with the accounting policy of the club in question.   It also means that as an asset in the SFP Lionel Messi at Barcelona is traded as being worth 0 because that's what they paid for him.  Accounting wise you can't class a person as an asset only the value of a footballer's registration in line with the rules of intangible assets.  In effect you don't trade them at what they're actually worth.  Is Messi worth 0?  Is  Ross Turnbull worth 0?  Probably not for both, but there's so many different variables as to how the value could change etc that this is the way it's done.

The write down is them saying that the players they bought for a lot of money, in reality would never come off so they've decided to trade that write off now, rather than trade it when the contracts expire or the players are sold for much less.

A loss like they have seen isn't great and that's only going to be worse next year I'm sure.

[RoversDave]

They also replaced a perfectly good stand (less than 30 yrs old I think) and had plans to rebuild the rest of the stadium too. Then the bubble burst.

[BobG]

I think those stands are a fair bit less than 30 years old Dave. I haven't bothered to check, but I do remember going to the old Molinuex in 1977 and it was very much alive and kicking then. They did one stand first I think and then they turned the pitch round to do all the others. It took quite a fair while to rebuild the place. Did they play Honved or somebody to open the new gaffe? Ferencvaros? It can't be any more than 30 years old for sure and it might be a bit less.

BobG

PS They probably played Celtic or Weeds having suggested Hungarian sides!

[RedRover45]

Think you're right with Honved Bob. And when I went to see the mighty Rovers win there in 1985 it was still the old style Molyneux as we were stood on that massive terrace behind the goal.

[BobG]

Cool. Thanks Red. Thinking about it again now, it doesn't seem that long ago they played Honved. I remember the match. Mid ish 80's?

I once saw Alan Sunderland score for Arsenal there. And Rixy played too. Wonder where he is now?

BobG

[Muttley]

And Rixy played too. Wonder where he is now?

BobG

Head coach of AFC Portchester, whoever they are!

[BobG]

Thanks Muttley I've never heard of 'em either!

BobG