Should Fosun sell?

[jlo]

We had better hope we aren't in the bottom 3 come November/December, as much as I'm ambivalent about Julen, someone like him won't be jumping to come in next time around

 

[Paddingtonwolf]

Goalposts moved. And they moved before with Nuno when they realised the milk and honey of perpetual European football was actually economically challenging even for behemoths. Reminds me of venkys not understanding relegation existed.

 

[Tony Towner]

I can't answer the question as to whether there is a buyer out there or at least one that would pay what Fosun would want. I also recognise that in the time Fosun have owned us Albion, Blues and Villa have all been owned by worse people by any measure you care to take, so there's a genuine fear of the unknown. Equally from a helicopter level they have invested significant amounts and we are still in a better position than when they took over.

They could still be a decent owner if they put a proper football structure in place, spent in a consistent rather than haphazard fashion and didn't continually change strategy to suit the whims of the Exec Board in China. Unfortunately that looks far fetched so whilst understanding there's probably not a petrostate or American investment firm around the corner in principle I'd rather they went. 3 more years of Fosun ownership will mean we'll be in the Championship, this morning I wouldn't dismiss 1 year.

 

[jd1981]

Fosun aren’t the disaster that some are portraying, agree the last 3 years they’ve made some bad calls.
Nevertheless had they not been here there’s a very good chance we’d have been getting ready for our 10th straight championship season and 12th season out the top flight.
Sound investment in seasons 2 & 3 laid the foundations and maintained our status.
Biggest criticism of them is they don’t have enough football brains around them and when they do don’t listen to them all the time.

 

[Johnny75]

Fosun aren’t the disaster that some are portraying, agree the last 3 years they’ve made some bad calls.
Nevertheless had they not been here there’s a very good chance we’d have been getting ready for our 10th straight championship season and 12th season out the top flight.
Sound investment in seasons 2 & 3 laid the foundations and maintained our status.
Biggest criticism of them is they don’t have enough football brains around them and when they do don’t listen to them all the time.

They are a disaster right at this moment.

 

[jd1981]

They are a disaster right at this moment.

At the moment yes and it seems the relegation close call has taught them nothing.

 

[WsWolf]

Make no mistake, if we go down and don't come straight back up we'll go the same way as Albion and Blues. It seems to be the M.O of Chinese owners.

 

[Paddingtonwolf]

Yes. I think that is a realistic prospect. But it can be saved. They need to take action to make the save if it starts going south. Wait and see I guess.

We do have the players to be okay. Pre-season was pretty decent.

Make no bones about it though. The start is tough. And catch up in the table could be even tougher.

 

[The Bear]

Until Fosun decide they want to sell (they don't right now) or get an offer they can't refuse, they are going nowhere.

 

[Johnny75]

Until Fosun decide they want to sell (they don't right now) or get an offer they can't refuse, they are going nowhere.

You are answering a question that wasn't asked

 

[The Bear]

You are answering a question that wasn't asked

Pretty pointless thread then as everyone says yes.

 

[Johnny75]

Pretty pointless thread then as everyone says yes.

Set your own up then if you think it's pointless.

The poll has worked perfectly for me.

 

[The Accountant]

Hi

I was told by a friendly stranger on a flight a few days ago to share some insight with Wolves fans as I've had the pleasure (well...) to, from a safe distance, being involved in quite a lot of Fosun's dealings in England and elsewhere in Europe.

In short, they have promised their Chinese lenders to offload non-profitable assets outside of China. In cases where this is not easily done but where a future sale is possible, Wolves and other Fosun assets are expected to function at a minimum cost level (optimally at a profit). If it possible to sell "loose assets" without losing brand value, their lenders expect them to that, and that is what is happening with your squad.

I know that for each of their (during normal operations) non-profitable assets there is a certain threshold where some money can be reinvested in the respective companies - as long as the overall target is reached. Don't be too surprised if there, at the end of the window, some money is spent on new players.

Fosun would love to sell Wolverhampton and from my understanding has reached out to potential Middle East investors to get someone to bite - but to no avail. Qatari oligarchs would love to buy a football club but they don't want one in Wolverhampton.

However, Fosun are expecting that at some point in the future, their valuation will be met. Until then, they have two options:
1. Invest just enough to stay up and sell off valuable assets (players) each summer
2. Get relegated to the Championship, operate the club on Championship costs while soaking up parachute payments

This could probably go on for 2-3 years, but I know that the Fosun leadership have an awareness that this won't be sustainable and that without investing substantial money, the club will eventually start to fail on the pitch (not a big issue until 12 months post relegation) while it will also bleeding money (a big issue and not tolerated by lenders and the Chinese government).

So yeah... they should sell. They want to sell, and without really knowing how you feel about them, I guarantee you that you want them to sell... But as it stands, no one is interested. China has said no to wasting more money on foreign football teams, the Saudis have decided to do their own thing, the Americans are no longer allowed to buy clubs in the fashion they bought United & Burnley. Basically what Fosun are waiting for is an unknown player which may or may not exist.

 

[Tony Towner]

Option 2 doesn't work for them in a logical sense though. As a PL club we are probably worth circa £250m - Newcastle went for £305m so adjusted for club size / not owning the stadium site, as a Championship club probably around half that - Leeds went for £170m. Asset stripping isn't going to fill that delta and every season in the Championship sees that value drop. A run of the mill Championship club takes us back down to the £45m they bought us for as they have added little infrastructure wise to increase that

 

[PuntsWolf]

It was fun while it lasted…

 

[Deutsch Wolf]

Parachute money is now 3 years rather than 4, and year 3 is now a relative pittance.

Basically if you don't go up inside 2 years from relegation you're very likely to get stuck or slip even further. Have a look at Albion right now, first year since 2001 they've had no form of PL money and it's very thin gruel for them now.

The crux of the matter is this though. There is no buyer. I don't know why anyone is pretending there is.

 

[North Shropshire Lad]

Option 2 doesn't work for them in a logical sense though. As a PL club we are probably worth circa £250m - Newcastle went for £305m so adjusted for club size / not owning the stadium site, as a Championship club probably around half that - Leeds went for £170m. Asset stripping isn't going to fill that delta and every season in the Championship sees that value drop. A run of the mill Championship club takes us back down to the £45m they bought us for as they have added little infrastructure wise to increase that

I'm voting for Option 1 then!

 

[Johnny75]

The crux of the matter is this though. There is no buyer. I don't know why anyone is pretending there is.

You keep saying this without any sort of evidence. It's just your opinion.

Burnley, Bournemouth, Leeds and Forest all found buyers. Bournemouth are tiny and with zero growth potential, your telling me they're more desirable than Wolves? I don't think so.

 

[Deutsch Wolf]

It's not opinion, there isn't one. Take or leave that information as you wish.

 

[Johnny75]

It's not opinion, there isn't one. Take or leave that information as you wish.

It is an opinion Dan, you have no idea if people are interested in buying Wolves or not.