Fosun have just agreed £677m deal as Jeff Shi reveals Wolves finance plans
The dedication of Wolves’ owners, Fosun, has been called into question in recent months, particularly when Gary O’Neil saw a number of his top players moved during the summer.
The Chinese company initially invested in the team in 2016 and managed their promotion to the Premier League, followed by a season in Europe. The company owns billions of dollars’ worth of properties worldwide.
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.
Jeff Shi, the chairman of the club and a representative of Fosun, has denied the claims, although he has acknowledged that Wolves are looking for minority investment.
Additionally, it has surfaced that Fosun intends to fund approximately £75 million in Wolves and their esports portfolio.
Furthermore, the most recent financial news can also provide some insight into Fosun’s broader corporate strategy and goals 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.
Fosun reports that they just obtained a £677 million loan from 25 different banks and other entities.
According to the company, it is among the biggest private loans that have been obtained in China this year.
Wolves PSR situation
As long as one owner covers the majority of the loss, Wolves are permitted to lose £105 million over a rolling three-year period under the current Premier League PSR structure.
Some speculated that Wolves were having problems in this area because of the summer’s wave of player transactions, which included the departure of Pedro Neto and Max Kilman, among others.
Shi has asserted, however, that Wolves have never been concerned about PSR, which is surprising considering that they have lost more than £100 million in the last two fiscal years.
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