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Mar 5, 2013

Wolves facing financial trouble if relegated

Wolves manager Dean Saunders is battling to prevent the club from facing the prospect of major financial problems if they are relegated.

• Wolves chief prepared to quit

The pressure on Saunders to keep his side in the Championship has been cranked up by chairman Steve Morgan's admission that the club will be forced to carry on paying Premier League wages in League One.

Wolves' current wage bill stands at £25-million-a-year and Morgan has revealed there are no clauses in the deals to reduce the remuneration of any of their big earners should they suffer a second relegation in 12 months.

Roger Johnson is the club's top earner, believed to be on £40,000-a-week and Jamie O'Hara earns around £35,000-a-week, while Kevin Doyle and Stephen Hunt take home around £25,000-a-week.

Wolves have already lost £6.5 million this season and expect their turnover to be down 50% from the £60 million they earned last year in the Premier League.

Morgan has warned of the threat of a transfer embargo next season if Wolves fail to stay up, because of the struggle to fall in line with new Financial Fair Play regulations.

"It's up to us to make sure we don't get into a tail spin. The contracts were done when we were in the Premier League," Morgan said. "There was no question or thought about going into League One. None of the contracts take that into account."

Saunders has failed to win a game since taking over from Stale Solbakken and heads to Millwall on Tuesday with opportunities to haul the club to safety starting to run out.

The Wolves boss has drawn four and lost five of his nine matches in charge so far, but has not broached the subject of the club's financial situation in the dressing room.

"'I'll have to cross that bridge when I come to it. I'm trying to motivate the players to win matches," Saunders said. "'I think the players know for their own careers what needs to be done.

"I've told them that if we can win five or six matches, then they can start looking upwards. We can have a right good go at it next year. Their careers can jump the other way, their salaries could increase. They aren't that far away from it."

Wolves currently sit 23rd in the Championship, one point adrift of safety.

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