General Wolves News

[Kenny]

Not a paying subscriber so can't read it

 

[Tredman]

You get one article free a week - I’ve just used it, so can’t go back in and c+p

 

[YoungWolf]

Ruined by the use of "simples" though

Very true

Don’t like the sound of this:


https://www.ft.com/content/d409f176-f709-11e9-9ef3-eca8fc8f2d65

We are nowhere near self-sustaining yet.

The direct investment bit seems to be to point to us trying to work around the limitations FFP give us. After reading it, it didn’t concern me so much.

 

[playtheace]

Chinese conglomerate Fosun International is attempting to sell a stake in Wolverhampton Wanderers as it gauges investor appetite for an eventual public listing of the club as part of a unit containing other sports-related assets that it owns.The sale, which has been under way for months without attracting a buyer, is intended to determine how such a float would be received, according to people familiar with the company’s plans.“It’s more to test the market, to see the value of Wolves,” said club chairman Jeff Shi, confirming that Fosun is exploring a stake sale. Wolverhampton, he added, was also looking for an investor to help promote the team outside of China: “It’s more about getting the right partner with strategic connections.”The club is selling a stake valued at £50m-100m, according to a person with direct knowledge of the matter. The stake would reportedly represent 20 per cent of its equity, valuing Wolves at around £350m. Fosun paid £45m for the storied West Midlands club in 2016.Hong Kong-listed Fosun faces an as-yet undisclosed writedown of its investment in British travel group Thomas Cook, which entered liquidation in September. Mr Shi denied that the stake sale was due to a shortage of funds at Fosun.Wolves finished seventh in England’s Premier League last season, its best placing for nearly 40 years. Meanwhile, broadcast rights payments helped the club make a “handsome” profit of roughly £20m last season, Mr Shi said, reversing annual losses of up to £57m after Fosun bought the club, then playing in England’s second-tier league.The club, which hopes the turnround in fortunes will tempt investors, declined to say who had shown an interest. “We are not just trying to sell the shares to anybody, we are very picky. We are doing it slowly,” said Mr Shi.Fosun said that it was still in the early stages of deciding whether a public listing of Wolves alongside other sports assets would be tenable. Fosun is reported to have a stake in Gestifute, an influential Portuguese sports agency that has been used by Wolves to make key signings.Several other Premier League clubs such as Newcastle United and Crystal Palace have in recent years failed to sell stakes, however. “Getting someone to buy a minority stake [in a football club] is incredibly difficult. Investors want full control,” said one financier.Wolverhampton has been the best performing of several high-profile English teams which were acquired by Chinese investors in recent years, including Southampton, Aston Villa and West Bromwich Albion.But Mr Shi said that the company was likely to reduce its direct investment in the team, which it has provided with interest-free loans worth at least £75m in recent years.“When we won the championship Wolves was not strong enough to be independent and we could only depend on our parent group,” he said. “But now we are much stronger. Now is not the time to always get funding from Fosun.”Additional reporting by Murad Ahmed and Arash Massoudi in London

 

[Tredman]

Very true



The direct investment bit seems to be to point to us trying to work around the limitations FFP give us. After reading it, it didn’t concern me so much.

It was more the bit at the end where Jeff says Fosun don’t really want to put anymore money in.

 

[Kenny]

It was more the bit at the end where Jeff says Fosun don’t really want to put anymore money in.

More reduce it rather than stop. I guess every penny they put in is classed as a loan and I doubt they will do a SJH when they sell up and wipe them clean

 

[AndyWolves]

More reduce it rather than stop. I guess every penny they put in is classed as a loan and I doubt they will do a SJH when they sell up and wipe them clean

I think that's what they're trying to do, reduce how much wolves are borrowing from Fosun

It could also be we get quoted silly money in the summer so this is a way to say we don't have limitless funds

 

[Kenny]

Timmy can't shake of the E&S habit here

Jeff Shi interviewed in the FT today.
Key points
- Fosun likely to reduce direct spending on the team, looking at other investment

I know what he means but he has worded that knowing he will have fans going nuts "WHERES THE MONEY GONE JEFF"

 

[Kenny]

"What the fuck do they mean spending less on the team. We need another advanced quality midfielder and a top class centre half"
"Does this mean no signings in January?"
"Seems to go against the quotes of making us " the best in the world", does it see us reduced to also rans or can we still expect big exciting signings in the Moutinho, Patricio, Neves mould? If not, we will find it difficult to hold on to the top guys? What are your thoughts Tim?"

Mixed in with those that know how to read but that is just in 5 mins. Can't wait for Joey to put his spin on this and the headline "FOSUN SAY NO MORE MONEY FOR WOLVES"

 

[Kenny]

This bit from athe article

"Meanwhile, broadcast rights payments helped the club make a “handsome” profit of roughly £20m last season"

Pretty decent going for year 1 in the Prem.

 

[Johnny75]

I think that's what they're trying to do, reduce how much wolves are borrowing from Fosun

It could also be we get quoted silly money in the summer so this is a way to say we don't have limitless funds

That's how i read it too. It looks like we are becoming self sustaining and we therefore don't need to borrow or lean on Fosun so much. It was a message to investors that if they put their money in they will get a return on it and not be bound to follow on their investment.

 

[Tony Towner]

Fosun are an investment business. The fact their strategy is for the club to become self sufficient leading to them eventually making profit and recovering more than their investment shouldn't come as a surprise to anybody

 

[Tredman]

They are investing in the wrong industry if they want to make money and a good return on their investment.

 

[Tony Towner]

Well as they already believe we are worth about £300m more than they paid for us and over £100m after spend, I'm guessing they don't see it that way

 

[Tredman]

They can believe that, but its what investors believe which matters. A £350m valuation based on £20m profit and not that many assets?

 

[Wilf Wolf]

Fosun saw a club with massive potential to increase income but it required an up front investment to take them to the PL which is where the big money is. They made that investment successfully and can now sell us on to another party with the value based on forecast income. The only problem is that income is far from guaranteed long-term as relegation is always possible. Looks like they think now could be a good time to cash in if they can find the right buyer.

One thing for certain is they won't be throwing huge amounts of money at us in the same way as Chelsea and Man City. This puts the underwhelming summer transfer window in context now.

 

[BGreenWolf]

Selling a stake in the club is not the same thing as selling the club outright, of course.

 

[AndyWolves]

They are investing in the wrong industry if they want to make money and a good return on their investment.

I don't think they're in it for the money. They're in it to raise brand awareness on an international scale but in a way that works

I think Fosun have enough clever people to know you don't make money in football as an owner (unless you're Mike Ashley)

 

[Tony Towner]

I think Fosun have enough clever people to know you don't make money in football as an owner (unless you're Mike Ashley)

This is demonstrably untrue. It's not the 90's.

 

[Norman Deeley]

They can believe that, but its what investors believe which matters. A £350m valuation based on £20m profit and not that many assets?

Doherty 30m Boly at least 30m Neves 40m - there's £100m
Traore 40m MGW 10m Jimenez 50m - another £100m
Jota 40m Cutrone 20m Vinagre 20m Patricio 20m - another £100m
Coady, Saiss, Neto...
Looks like plenty of assets to me