Norwich City: Canaries' 2022-23 accounts broken down

The figure that immediately will jump out is the £27.2million loss City have suffered in this financial year, an alarming number on the surface and a troubling one in reality.

The main cause of that loss is a lack of player sales in the relevant period. The club spent nearly £102million, entitled their ‘operating expenses’ within the report, and are used to making up for a significant amount of that through the purchase of their squad members.

Last year’s accounts were propped up significantly by Emi Buendia’s club-record sale to Aston Villa, a year prior Ben Godfrey’s and Jamal Lewis’ exits helped shrink the chasm, and before that James Maddison helped fill a significant financial hole as he joined Leicester City.

Across the two windows covered in this report, however, summer 2022 and January this year, no significant sales were made, with Pierre Lees-Melou’s move to Stade Brest the most lucrative of any deal they did.

Player sales like Emi Buendia's propped up the club's accounts in previous years (Image: PA)

The good news on that front is that next year’s accounts will include at least £21.4million-worth of player sales, with Milot Rashica’s, Andrew Omobamidele’s and Max Aarons’ departures included in the ‘post balance sheet events’ section of the report.

Also included in that section is the confirmation of a commitment to at least £3.4million of transfer expenditure this summer, potentially rising to £5.8million based on whether add-on clauses are achieved by the players in question. They include Ashley Barnes, Danny Batth, Shane Duffy, Christian Fassnacht, Kellen Fisher, Adam Forshaw, George Long, Borja Sainz, Jack Stacey and Hwang Ui-jo.

Nearly £6million of that £102million spent was on infrastructure, with Colney’s new recovery hub the main expense in that area. Carrow Road’s new Lion & Castle pub was also invested in to boost fan experience in the Barclay End, with infrastructure a key pillar of City’s operations according to the report.

Almost £57million of that expenditure went on wages, amounting to 75pc of the club’s turnover. And while in most businesses that would be viewed as unsustainable, it’s far from the worst in football’s backward landscape.

For context, 88pc of the club’s turnover was spent on wages last season, which was comparatively high against others in the division. But the Championship’s dog fight for the top flight means they look healthier in comparison this time around. The 2018-19 season saw Norwich spend 152pc of their turnover on wages, while Brentford got to 186pc in the same season and Reading spent a staggering 211pc of their turnover on wages.

What’s even more fearsome than the losses made is the debt the club has, as detailed in the ‘current assets’ section of the report. Their debt has jumped from £66million this time last year to £76million in the current accounts, an increase caused mainly by interest.

What makes the debt slightly more palatable, and convenient for the club, is that a significant proportion of it is now owed to Mark Attanasio’s Norfolk Holdings group rather than external and unrelated debtors.

That’s viewed internally as a major positive for the club, with that debt set to decrease in the coming financial year and henceforth. There remain external debts that will be paid by the end of next year, but Attanasio’s involvement means a healthier overall picture in NR1.

The American’s increased influence is another key part of the accounts; mentions of share allotment refer to his increased involvement in the business, with processes at the final stage before completion of the deal to take his stake to 40pc.

There are worrying indications of the club’s decline - a £10million decrease in their assets is one of those – but in reality the numbers reflect what supporters have seen on the pitch.

In the boardroom, Attanasio offers hope, but there’s plenty of work to get back on a safe an even financial keel.