After detailed evaluation of the club and its needs, and as part of their long-term commitment of bringing success to the football club, the new owners invested significantly in the playing squad and footballing staff in the summer of 2016.
On the pitch acquisitions included Player of the Season Helder Costa, Ivan Cavaleiro and Romain Saiss, who have all proven valuable assets and gone on to play an integral part in a successful 2017/18 season to date.
In an effort to support and guide their investments on the pitch, the football management was changed twice during the financial year, and once again in the summer of 2017, which has played a vital role in the uplift of performances and results this season.
Turnover for the year was £23.8m (£27.2m in 2016), reflecting the first year without the benefit of the Premier League’s parachute payments, resulting in a net reduction of £6.2m compared to the Football League’s central funding.
This was offset, in part, by increased ticketing, broadcasting and commercial income, resulting in a combined £2.6m uplift.
Whilst the amount of season ticket holders dropped, average league attendances rose to 21,572, which resulted in an increase of £1.2m in ticketing income.
In total, the club made a pre-tax loss of £23.184m, compared to a profit of £5.831m the previous year, which can be attributed largely to increased expenditure on players, player wages, restructuring of the football staff and continued investment in the training facilities at Compton.
In addition, there was also a significant drop in profit from player sales during the period, with a total income of £2.2m, as opposed to £9.9m the preceding year.
Since taking ownership of the club, Fosun International have always maintained the view that increased expenditure both on and off the pitch is essential to ensure Wolves are able to compete with other clubs of a similar size and ambition.
They believe that with sound investment, made with the club's long-term future at heart, they can realise their ambition for the club to win promotion to the Premier League, where it can enjoy continued growth and sustained success.
7th March 2018
Wolves have released headline financial information for the year ending 31st May 2017, a period which reflects the 2016/17 Sky Bet Championship season and a first year under the ownership of Fosun International.
