Wolves get major update from China as Fosun target £75m finance deal
Today at 01:51 PM
Updates from Fosun have been few and far between for Wolves in recent times, but the owners will no doubt be delighted by the latest news from Premier League HQ.
Wolves‘ Chinese benefactors Fosun – a huge investment group led by Guo Guangchang, Wang Qunbin, Liang Xinjun – bought the club in 2016 and enjoyed major success in the early years.
However, the Premier League‘s Profit and Sustainability Rules, which limit clubs to financial losses of £105m over a rolling three-year period, have led to swathes of player sales in recent seasons.
The departures of the likes of Max Kilman and Pedro Neto in the summer were the catalyst for rumours that Fosun were crafting an exit strategy at Molineux.
However, in a round of media appearances in recent weeks, chairman Jeff Shi has insisted that the owners are only seeking minority investment in Wolves, not a full sale.
Hoping to raise £75m, Fosun will reportedly reinvest the capital in their esports and sportswear ventures.
It is likely that Wolves would be involved in some capacity with either of those investment projects, given that they have their own successful esports team and have their kits manufactured by Fosun-owned Sudu.
Wolves to capitalise on new Premier League strategy?
In what was considered a somewhat tenuous claim, Jeff Shi recently said that Wolves were the fourth most popular club in China.
And while that may well be slightly wide of the mark given the brand strength of the so-called ‘Big Six’ in the region, Wolves are a growing name in the state of nearly 1.5 billion people.
Now, as reported by Sport Business, the Premier League are set to open a new office in China to drive a commercial push in the region.
After the Premier League saw its Chinese TV deal worth more than £500m scrapped in 2022, Richard Masters and his peers are looking for a new media package in the country.
The fact that the Premier League are actively courting interest in the region bodes well for Fosun and their search for minority investment.
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Wolves seeking minority investment – who could buy into the Molineux club?
Recent developments have perhaps hinted that Fosun may be looking to the Middle East for investors.
The investment arms of Gulf states have notably invested in the likes of Man City, Newcastle United and Paris Saint-Germain, but also in ‘smaller’ clubs like Sheffield United and Paris FC in recent years.
The private equity market, however, may well be a more realistic proposition for Wolves.
Investment companies and financial institutions from the America have descended on the Premier League in their droves in recent years, with over half of the 20 clubs now having some degree of US ownership.
But it is a crowded market place at present, with Tottenham, West Ham and a smattering of other clubs actively on the hunt for minority investment.
Speaking exclusively to TBR Football, Liverpool University football finance lecturer and industry insider Kieran Maguire has suggested Fosun likely value Wolves at around £500m.
That appraisal however is heavily contingent on Wolves retaining their top flight status this season under Gary O’Neil.
