Championship football club scores with profitable result

Players’ sales helped Championship football club Wolverhampton Wanderers achieve a pre-tax profit of £5.8m in the final year of Steve Morgan’s ownership.

The Redrow founder sold the club for around £45m to the Fosun Group last July after nearly a decade in charge.

Wolves has released headline financial information for the year to May 2016, a season which saw the club finish 14th in English football’s second tier.

Turnover rose slightly, up 3% to £27.25m, which was boosted by increased central distribution relating to the new television contract.

Pre-tax profits increased by £5.1m, which was reliant on the sale of Richard Stearman to Fulham and of Benik Afobe to AFC Bournemouth. In total there was a £7.4m increase in the profit on sale of players’ registrations during the year.

The club benefitted from its final parachute payment, of £10.8m, following its relegation from the Premier League in 2012.

Wolves’ profits also benefitted from the release of part of the exceptional onerous contract provision made in 2013, after the relegation to League One, although it only added£2.6m, compared to £6.7m in the previous financial year.