Norwich City have today released their annual financial report for the year, which shows the club recorded a £23.6m loss during the 2021/22 season, largely down to their player trading.

That is for the financial year for the 11 months from the start of August 2021, through to June 30 of this year, with the departure of Emi Buendia to Aston Villa last summer included in last year's accounts.

The Canaries would have recorded a £3m profit without player trading - but spent a record sum in an attempt to survive in the top-flight.

That coincides with the club recording their highest amount of turnover in history at £133.9m - an increase of 134pc.

To continue their mitigation against the financial hole created by the effects of the coronavirus pandemic, Norwich have borrowed an undisclosed sum against 'both future media rights and contracted player receivables'. They expect that to be paid back in full by March and September 2024 respectively.

The total borrowings are costed at £49m, with cash reserves in the period of £4.8m, and would mean Norwich would have to cut their cloth accordingly if they failed to get promoted back to the Premier League this season.

Wages are up 77pc to a record figure of £118m, reflecting the Canaries promotion and various clauses being implemented within players' contracts as a result. Total wage costs as a percentage of turnover sat at 88pc for the 21/22 season.

Norwich's average weekly wage works out at £45k - once again the highest average figure in the club's history.

Norwich's wage structure is such that relegation clauses are embedded into contracts, meaning that figure is expected to be dramatically different in the Championship this season.

In terms of transfers, Norwich paid a total of £47.5m on Ben Gibson, Dimitris Giannoulis, Milot Rashica, Angus Gunn, Christos Tzolis, Josh Sargent, Liam Gibbs and Pierre Lees-Melou.

Norwich also committed to £23.4m in transfer fee amortisation, fees spread over multiple years, which is a record for the club and doubled their figure in the 20/21 accounts.

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According to football finance expert Kieran Maguire, Norwich wages were £88 for every £100 of income. Once transfer fee amortisation costs are and the total comes to £135 spent on players for every £100 of income.

Unlike in other seasons, and due to the Buendia transfer being included in the previous year's accounts, there were hardly any player sales. Norwich funded that loss through borrowing, with overall net debt rising from minus £29m in 2020 to plus £44m by 2022.

Norwich paid £15m in loan fees for the signings of Ozan Kabak, Billy Gilmour, Brandon Williams and Mathias Normann. That was an increase of £10m from their previous Championship campaign.

Income on player's that City had away on loan saw them recoup £6.43m in loan fees.

Commercially, Norwich received £21.2m from sponsors - despite losing money from their BK8 deal that saw them sign a quick deal with Lotus Cars. This was another all-time club high.

The club also confirmed their season ticket base at 20,559.

Not included in this year's accounts, but mentioned as part of the post-balance sheet events, the club confirmed they have committed to payments of £10.5m for the acquisitions of Gabriel Sara from Sao Paulo and Marcelino Nunez. That figure also includes Aaron Ramsey's loan from Aston Villa.

Those deals possess the potential for City to pay another £4.5m in various future clauses.

Mark Attanasio's £10m investment through newly created C Preference shares into the club has also been confirmed and will be included in the club's 2022/23 accounts published next year.

Norwich City became the first side in history to finish bottom of the Premier League and recoup £100m, made up of broadcast revenue (facility fees) and merit payments (league position).

City's £100.6m payment compared with the £97.5m Sheffield United banked for finishing bottom of the Premier League in 2020/21.

Relegation from the top-flight means City are, along with Burnley and Watford, in receipt of controversial parachute payments designed to cushion the drop in revenue ahead of the Championship season.

Once again, the accounts display City's difficult task of balancing financial sustainability as a self-funding outfit with competitive success after a difficult year in the top-flight.

That mission is one that was reflecting upon by executive director Zoe Ward, who said: "Our record total income of £141m is by far the highest in the history of the club and is testament to our collaborative approach.

"In the Premier League we competed against bigger spending clubs with more resources and greater commercial appeal," she writes in the club's report.

"The challenges of competing at this level are huge, but they are not insurmountable. The club has the fanbase, the infrastructure and the staff to
be able to do that. We must find a way."