Wolves are facing ‘PSR problem’, they could be set to lose £20m
Wolves appear almost certain to be relegated from the Premier League following their miserable first half of this season.
Wolves lost 2-1 to Arsenal on Saturday (13 December) after Yerson Mosquera put through his own net in the dying moments at the Emirates Stadium.
Rob Edwards has so far failed to turn the West Midlands side’s fortunes around since being appointed as their new manager last month.
Football Insider revealed on 12 November Wolves were prepared to back Edwards in the January transfer window depending on their position in the Premier League.
However, Wolves currently sit rock bottom of the top-flight table and are 14 points from safety after 16 games.
Wolves face major financial blow after Premier League relegation
Former Man City financial adviser Stefan Borson exclusively told Football Insider Wolves are going to be down around £20million on their budget if they are relegated this season.
The Molineux club have spent the past seven years in the Premier League, having been promoted under Nuno Espirito Santo in 2018.
Speaking exclusively to Football Insider, Borson said: “Clearly, they’re going to be well down on their forecast league position. I assume that they would forecast maybe 15th at worst.
“The bottom line is they’re going to be at least against their budget let’s say £15-20m down on merits award expectations. They’re probably down on ticket sales, let’s say that’s maybe £5m, so we’re up to £15-20m down on what they expected to have in this season.
“And by the way, those two lines are more or less straight to profit because they’re all incremental and merit payment has no cost because it’s just about where you finish.”
Wolves finished 16th in the Premier League last season after former manager Vitor Pereira guided them to safety.
Wolves made move to avoid PSR breach
Wolves have faced profit and sustainability (PSR) issues in recent seasons, having sold several players to avoid a spending breach.
Borson insisted the overall cost of relegation from the Premier League will create a “PSR problem” at Molineux.
“You’re talking about £20m to the bottom line difference,” said Borson.
“Not just the top line, but the bottom line as well. That then says, ‘Well, we’ve got a problem on our hands because we already were pretty close on PSR’, and we know that they must have been quite close because they moved their accounting window to 30 June last season so that they could put the sale of Cunha in last season to comply with PSR.
“So, you’ve got a PSR problem for the current season maybe, and then they’ve got to look forward and go, ‘Well, we’re going to be a Championship team’.”
Wolves’ next fixture sees them take on Brentford on Saturday (20 December) as they go in pursuit of their first Premier League victory of the season.
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