Wolves’ £100m dilemma if Vitor Pereira is sacked explained as Brendan Rodgers links intensify

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Wolves are starting to lose patience with Vitor Pereira, and with news that Brendan Rodgers has left Celtic, rumours are circulating that he could be the replacement. But what would the financial implications be?

“Sacked in the morning,” was the chant Wolves fans sang at their manager, Vitor Pereira, after the Premier League loss to Burnley on Sunday.

Wolves players have apologised for their torrid form, which currently sees them sitting rock bottom of the Premier League table.

Pereira is regarded as an elite manager, so would they really sack him? And how would it affect them financially?

What happens financially if Wolves sack Vitor Pereira?

Speaking to TBR Football’s Head of Football Finance and Governance, Adam Williams, he explained the implications should the Molineux outfit pull the trigger and give the Portuguese manager the boot.

He said: “There are a few things to consider when it comes to the costs of parting company with a manager.

“Typically, you pay out the remaining value of the contract. Because he’s only recently signed a three-year deal, clearly that’s not ideal.

“But the exception is if there was a break clause in his contract that stipulates a lower fee if his deal is terminated within a certain time frame, or if certain objectives aren’t met.

“The mood music I’ve heard is that there are terms that will protect Wolves here, meaning they won’t have to pay out the full amount.

“In terms of when the payment arises, sometimes a club will continue to pay out the contract on a weekly basis as they ordinarily would, while in other situations the hit will come all in one go.

“Either way, the cost is registered all at once as an exceptional expense for accounting purposes and therefore for PSR purposes as well.”

Brendan Rodgers leaves Celtic and rumoured for Wolves job

The big news coming out of Scotland is that former Liverpool boss Brendan Rodgers has left Celtic, and the rumour mill suggests he could be a candidate to replace Pereira.

TBR Football understands that Wolves are interested in Rodgers, but at the moment are sticking with Pereira – although that could change.

So how would that affect things if Rodgers came in?

Williams continued: “Because Rodgers is unemployed, they won’t have to pay anything for him besides a signing-on bonus.

“We don’t know what wages Vitor Pereira was on, but Wolves’ overall wage bill was £142m in their last set of accounts. Based on industry averages, we can estimate that Pereira is on something like £3m annually. I think that’s probably a benchmark for compensation.

“They will also have to write off the remaining amortised value of the £800,000 they paid his previous club to release him from his contract there.

“That’s not going to move the needle significantly, but it is a factor. On top of that, you need to consider whether you’re appointing a whole new backroom team or not, which can obviously escalate costs too.

“So if I had to estimate, I’d put the figure somewhere around £4m – but that’s an educated guess.

The £100m Premier League dilemma

“Each place in the Premier League is worth £2–3m, so if you think by sacking him you can finish even two places higher, it’s cost-effective if you’re right.

“Clearly, if it’s the difference between staying up and being relegated, then it’s a £100m-plus decision, depending on how they would fare under parachute payments.”

Whether Wolves stick or twist in the managerial market remains to be seen, but Rodgers could ultimately save them £100m if they want to remain in the Premier League. Food for thought.