Molineux Mayhem: Wolves' Shocking Departure Sends Premier League Fans into a Frenzy - What's Happening Behind the Scenes?

Starting a season by selling your best player, not investing any of the money, and then parting ways with the head coach is a surefire way for a club to intentionally get relegated. The Premier League's crisis club, Wolves, seems to be following this path. Julen Lopetegui has left the club under the pretense of mutual consent, but there are whispers of broken promises behind the scenes. The departure of high-profile player Ruben Neves is just one example of the exodus happening at Wolves. In contrast, the only new addition to the team has been reserve right-back Matt Doherty, and even he was acquired on a free transfer. Clearly, this is not the rebuild that was initially demanded.

No one emerges unscathed from this situation. It is widely acknowledged that Wolves' chances of remaining in the Premier League this season are significantly hindered by the departure of a highly skilled manager. However, Lopetegui received substantial financial support in January, indicating the genuine financial challenges faced by the club.

Considering the overwhelmingly positive influence he had, it becomes difficult for Wolves to lament their decision to appoint him initially. As the previous coach of Real Madrid and Spain, Lopetegui inherited a dire predicament with the club languishing at the bottom of the Premier League table during the Christmas period. Nonetheless, he successfully transformed the entire situation.

Wolves achieved a fifth consecutive season in the top 13, but this came at the expense of their summer budget as they heavily invested during January. Matheus Cunha was acquired for a significant fee of £43m, along with the arrivals of Pablo Sarabia, Mario Lemina, Joao Gomes, and Craig Dawson.

It remains unclear how aware Lopetegui was of this situation when he initially considered joining Wolves. He stated to Guillem Balague that they had believed in a different project when they first arrived. Lopetegui also mentioned that even the backup plan had been abandoned.

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Nathan Collins has been transferred to Brentford after spending only one season with Wolves. Wolves have generated nearly £70m this summer solely from the transfers of Nathan Collins and club captain Neves. Additionally, several other high-earning players such as Joao Moutinho, Adama Traore, Raul Jimenez, Conor Coady, and Diego Costa have also left the club.

Why is FFP a problem for Wolves?

FFP is a concern for Wolves as it plays a significant role in Lopetegui losing faith. He was informed that none of the finances would be reinvested, and although the club attributes it to Financial Fair Play restrictions, some fans are urging Fosun, the owners, to sell. There is doubt surrounding their commitment despite chairman Jeff Shi's open letter to the supporters.

Furthermore, it is important to note that Wolves' financial situation is under scrutiny. According to FFP regulations, losses of up to £105m are allowed over a period of three years. The most recent financial report, which covers the period of 2021/22, indicated a loss of £46m. Details of the 2022/23 accounts will only be made available next year; however, another significant loss is expected.

A net profit is imperative in order to reverse the current trend. Although the summer sales of Neves and Collins have generated substantial revenues, the accounting situation complicates matters. To comprehend the challenges faced by Wolves, it is necessary to delve into a detailed discussion on amortisation. This accounting principle enables the allocation of an asset's cost over its useful lifespan, thereby providing a more accurate representation of a business's capital expenses.

When a player signs a contract worth £20m for a duration of four years, the transfer fee is split evenly over those years, resulting in an annual amortisation cost of £5m. Consequently, the expenses shown in the accounts for a player signed three years ago are not only limited to their wages. Amortisation costs also need to be taken into account. This discrepancy between cash flow and accounts sheds light on the difficulties Wolves are encountering in their quest to make a profit this season. Generating revenue is not the sole factor involved; the book value of the player must also be considered.

When Luton Town purchases Ryan Giles, an academy product, for £5m, this transaction yields pure profit. However, the situation drastically changes when Jimenez, who was initially signed for £30m four years ago, departs for a slightly higher amount, as he still holds a substantial book value.

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Raul Jimenez has been sold to fellow Premier League club Fulham

The signings of Nelson Semedo and Fabio Silva in the summer of 2020 may feel like a distant memory, with a significant amount of money already spent. However, a portion of that expense still remains on the balance sheet, affecting the profit and loss account upon their eventual sale.

These circumstances will impact future decision-making. A similar situation can be seen with Goncalo Guedes, who struggled to adapt after his £28m transfer from Valencia last season and now seems to have no place at Wolves. As a result, he was loaned to Benfica in January.

Selling Guedes to recover any possible funds may seem reasonable if it were a matter of cash flow. However, this would result in a significant financial loss for the team. Consequently, it is probable that the forward would be loaned out once again. Paradoxically, Wolves cannot afford to let him go.

On the contrary, the prospect of selling Max Kilman would probably be appealing to the finance department at Molineux. The defender, valued at £35m, was acquired from Maidenhead and has caught the attention of Napoli. The funds generated from this sale would greatly impact the team's financial statements.

How weak is this Wolves squad?

However, Kilman's departure could have a significant impact on the team, both in terms of his contribution on the field and the potential financial gain from his sale. While selling him could provide the club with funds to invest in new players and improve the squad's balance, it may also be a sale that is too risky considering his importance to the team. Additionally, the fear of relegation adds another layer of uncertainty to this decision.

Despite the concerns expressed by supporters and the general pessimism surrounding the team, it is important to recognize that Wolves still possess a squad with considerable talent. Many of the players who have left the team were not essential to Lopetegui's successful revival, and there is still quality remaining within the current roster.

Coady, who was already on loan, and Collins, who was dropped from the team in January, were not factors in the four consecutive home wins that led to Wolves' survival. However, Jonny Otto and Rayan Ait Nouri, who could potentially leave, also did not play during this impressive run.

Wolves boast the highest number of clean sheets in front of their home fans in the Premier League this year, thanks to their steadfast first-choice defense. In the midfield, the likes of Matheus Nunes, who was signed for a hefty £42m last summer, could potentially partner with January recruits Lemina and Gomes, both of whom have already gained favor with the fans.

Neves leaving is a significant setback, but it was the appropriate moment for other prominent players to depart as well. Moutinho, who will turn 37 in September, did not make any starts in the final nine matches of the season. Similarly, Jimenez, despite not scoring a single Premier League goal last season, had minimal appearances.

The primary worry remains the lack of goals, although the attacking players' quality is noteworthy. Cunha, Sarabia, and Pedro Neto, all full internationals for Brazil, Spain, and Portugal respectively, commenced the pre-season victory over Porto.

Season of struggle for Wolves?

The fact that half of the outfield players in the expected starting lineup for the opening Monday Night Football against Manchester United have been signed since Lopetegui took over as coach gives some context to his complaints. However, it is evident that there are still unresolved issues.

Season of struggle for Wolves?

In case Daniel Podence leaves, the only players in the team who have scored more than ten career goals in the Premier League are the returning Doherty and fellow defender Dawson. Over the last three seasons, no player from Wolves has managed to score more than six goals in all competitions.

If they are to avoid a similar decline like Leicester City did last season, they will definitely need to make some changes. The situation in the East Midlands, where Leicester City is located, serves as a relevant example, especially considering the lack of new recruits expected this summer at Molineux.

Leicester City also possessed quality, but it did not protect them when they failed to rejuvenate and fell into a state of decline. The difference in attitude at Nottingham Forest was crucial during the latter stages of the previous season. While one club was inspired by their precarious situation, the other was shattered by it.

Lopetegui's public statements were influenced by both self-preservation and frustration. The coach recognized the necessity to safeguard his own reputation. Additionally, he aimed to reshape the perception surrounding Wolves, acknowledging the need for a shift in exaggerated anticipations.

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Furthermore, his own team members seemed to deviate from the agreed message. Only a few weeks earlier, midfielder Nunes was setting higher standards instead of settling for less. "Our squad boasts an abundance of skillful players, enabling us to strive and secure a position within the top eight," affirmed the Portuguese. "This ought to be our primary objective." Paradoxically, this very aspiration also contributes to the predicament.

Wolves and Luton could be in a situation where they are tied after six games, but the atmosphere surrounding the two clubs would be vastly contrasting. If a coach can shift the perspective to view survival as a form of success, it would make the challenging task ahead more manageable.

This might be the only positive aspect for Wolves. Similar to the situation at Bournemouth last season, when Gary O'Neil took over from Scott Parker, the general consensus from the outside world might be to dismiss them now. However, if they stay united in difficult times, there is a path forward.

How feasible is that for players and supporters? They mustered a late surge last season, fueled by the hope of brighter days to come, as long as they managed to avoid relegation. Now, they are being reassured of the same as the new season commences. It marks the most unfavorable beginning, but the conclusion remains uncertain.