Fosun have just agreed £677m deal as Jeff Shi reveals Wolves finance plans
£677m. ????
Wolves owners Fosun have had their commitment to the club questioned in recent months, and especially after Gary O’Neil saw a flurry of his best players sold over the summer.
The Chinese firm, who control billions of dollars worth of assets globally, first bought into the club in 2016 and oversaw promotion to the Premier League, followed by a season in Europe.
But the relative lack of communication from the board coupled with the apparent scaling down of investment in the club led to speculation that they were attempting to sell the club.
Club chairman and Fosun representative Jeff Shi has distanced himself from those rumours, but he has confirmed that Wolves are seeking minority investment.
It has also emerged that Fosun plan to reinvest around £75m in Wolves and their esports portfolio.
And the latest news from the financial sphere may also give some indication about Fosun’s wider business masterplan and their ambitions at Wolves.
Fosun raise £677m
Fosun, or Fosun International to give them their full title, are one of the biggest private investment firms in China, with revenue of over £20bn in the last financial year alone.
Chinese investment in sport has slowed down at the behest of the government in recent years, but there are some indications that is may be beginning to ramp up again.
And if Fosun are looking to raise capital or liquidity for more investment in sport – and perhaps Wolves specifically – then the door has just opened for them to do so.
According to Fosun, they have just secured a £677m loan drawn from 25 different banks and financial institutions.
The company says it is one of the largest private loans secured in China so far this year.
Wolves PSR situation
Under the current Premier League PSR system, Wolves are allowed to lose £105m over a rolling three-year period as long as the bulk of that covered by an owner.
The raft of player sales the summer, which saw Max Kilman and Pedro Neto among others depart, led some to suggest that Wolves were facing issues in this department.
However, Shi has claimed that Wolves have never had any anxieties with PSR, which is surprise given that they lost over £100m in the last two recorded financial years.
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