Norwich executives insist there is no need to panic despite announcing losses of £38m for the financial year ending June 2019.
The Canaries revealed the figures in their annual accounts, which comprised of £32.8m spent in "operating activities," while the purchases of Emiliano Buendia, Moritz Leitner and Philip Heise have contributed to the debt.
However, the board remain confident the current financial situation is only temporary and believe it has been heightened through not receiving parachute payments from the Premier League for the first campaign in eight years.
Norwich's chief operating officer Ben Kensell said: "These figures demonstrate the club's financial resilience with our first year without parachute payments whilst achieving promotion to the Premier League as champions."
The Canaries did raise funds through the sales of Josh Murphy, Alex Pritchard and Leicester playmaker James Maddison, amounting to £20.6m
A statement on the club's website read: "Following promotion to the Premier League the club anticipates a substantial operating profit in the financial year to June 2020."