Quirkafleeg
PSA Grade: 3
- Joined
- Oct 21, 2009
- Messages
- 26,359
- Reaction score
- 3,559
This downward spiral was exacerbated by financial inefficiency. Despite player sales, both wage costs and transfer write-downs rose, particularly for signings linked to Mendes. In the 2023/24 season, Wolves' operating costs amounted to a staggering 117 percent of revenue, the second-highest percentage in the Premier League. Since 2020/21, this figure has been above 100 percent every season, with peaks of up to 133 percent. This points to a structurally unsound financial model.
Like Wolves, Aston Villa is owned by private investors, but Wolves may have even more untapped potential. The club almost completely dominates its region, and Fosun has strong Chinese networks, offering significant opportunities in Asian markets. Yet, that potential has hardly been tapped.
Instead, Fosun early on focused on esports as a growth model. However, that yielded little. In nine years, the team competed in over one hundred tournaments, netting only $10.4 million in prize money. In football terms, that's negligible and no substitute for strong sponsorship deals.
The time, money, and attention spent on this could also have been invested in brand building, regional sponsorship, and international partnerships. Those opportunities were largely missed.
As a result, Wolves' commercial revenue has barely grown: from £28m in 2018/19 to £27m in 2023/24. Five years of virtual stagnation.
It's galling how obvious so many of Shi's mistakes have been.Who could imagine esports would be an expensive distraction?!
The main reason Fosun got in on eSports was similar to why they purchased us.It's galling how obvious so many of Shi's mistakes have been.
Especially when he clearly thought he was the cleverest person in the room.