Wolves news: Stefan Borson drops points deduction verdict after takeover reveal
Wolves are not going to be able to improve their profit and sustainability (PSR) situation purely by securing new investment. That is the view of... The post Wolves news: Stefan Borson drops points deduction verdict after takeover reveal appeared first on Football Insider.
Wolves are not going to be able to improve their profit and sustainability (PSR) situation purely by securing new investment.
That is the view of finance expert Stefan Borson, who exclusively told Football Insider the West Midlands club need their revenue to increase and their costs to reduce to avoid having any further PSR concerns.
Wolves are believed to have been close to the PSR limit over the past couple of seasons, with Premier League clubs only permitted to lose £105million over a rolling three-year period.
Gary O’Neil’s side have been forced to sell several big-name players to ensure they remain within the limit, with the likes of Pedro Neto and Max Kilman moving on over the summer.
In an interview with The Telegraph on 27 September, chairman Jeff Shi revealed the club have spoken with groups about a minority investment and there has been plenty of interest.
Wolves have been owned by Chinese conglomerate Fosun International since 2016.
Wolves investment won’t change PSR situation
But Borson revealed fresh investment won’t prevent the club from having further PSR concerns.
He told Football Insider: “You have to separate cash through the door to pay the bills versus moving the dial from a PSR perspective.
“They are bound in on the PSR side of things, so bringing in new investment is not going to move the dial in terms of revenue.
“They need the revenue to increase and they need the costs to reduce, such that they are not so close to breaching PSR every season.
“Without that, it doesn’t really matter who owns the club, aside from they are going to fund it.
“They just have very limited leeway no matter which way they go.”
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The post Wolves news: Stefan Borson drops points deduction verdict after takeover reveal appeared first on Football Insider.
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