£500m-valued takeover could see Wolves eclipse Newcastle United
After two summers of player sales that saw Wolves rake in £113m more than they spent in the transfer market, fans could be forgiven for questioning the long-term commitment of the owners, Fosun.
The investment group – chaired by Chinese trio Guo Guangchang, Liang Xinjun and Wang Qunbin – bought Wolves for £45m in 2016.
That was the height of China’s investment in football, where the state incentivised its billionaires to pump money into the game.
However, China has since pivoted to encouraging investment in their domestic league and, more recently, has scaled back its emphasis on football altogether.
Wolves enjoyed great success in the early days of Fosun’s reign, earning promotion from the Championship in 2018 and immediately overseeing successive 7th-place finishes in the Premier League.
But several seasons of mid-table anonymity have followed and they have taken just one point from their opening six games this term.
That has led to questions over the future of the manager, although Fosun continue to have faith in Gary O’Neil’s style of play.
Now, club chairman Jeff Shi has taken the dramatic step of being interviewed by The Telegraph with a view to settling anxieties about the club’s ownership.
To explore Shi’s plans in depth, TBR Football spoke exclusively to Liverpool University football finance lecturer, Price of Football author, and industry insider Kieran Maguire.
Wolves’ PSR position
Naturally given Wolves’ many sales over the last two seasons – plus their £67m loss in the last published financial year – there have been questions about Wolves PSR position.
Under the Premier League’s Profit and Sustainability Rules, Wolves are allowed to lose no more than £105m over a rolling three-year period, although costs such as infrastructure and youth investment are exempt.
However, in his interview, Shi has insisted that not only is PSR currently a non-issue at Molineux but also that is has never been close to becoming one.
“Looking at the club’s finances, while PSR is a concern, it is not a huge one,” said Maguire.
“There was no rush to sell players before 30th June, which does indicate that there is a degree of leeway.
“Jeff Shi’s comments therefore have some validity. At the same time, there does appear to be a disconnect between the expectations of the fanbase and the strategy implemented by Fosun.
“This could be due to Mendes acting as a de-facto advisor for the club, focusing on finding clubs for his players at destinations other than Wolves.
“That has been very lucrative for the club in terms of the excitement that those players have brought and the money that they have recouped.”
