Wolves are going to find it difficult to secure a new investor due to the amount of Premier league clubs that are currently for sale.
According to financial analyst Stefan Borson, who spoke exclusively to Football Insider, the West Midlands club won’t be able to improve their financial status with investment alone.
Since Premier League teams are only allowed to lose £105 million over a rolling three-year period, Wolves are thought to have been near the profit and sustainability (PSR) limit during the last two seasons.
Pedro Neto and Max Kilman, among others, have left during the summer, forcing Gary O’Neil’s team to sell a number of well-known players in order to stay below the budget.
Chairman Jeff Shi stated in an interview with The Telegraph on September 27 that the club has discussed a minority stake with various businesses and that there has been a lot of interest.
Since 2016, the Chinese business Fosun International has controlled Wolves.
In their most recent 2022–2023 financial statements, the club reported £169 million in revenue, but their wage bill for the same year was £142 million.
“I don’t see any other sources of income that will significantly change the situation. Matchday is essentially set. The TV is plainly not under their control.
“Where they place in the league is the only variable.” They are unlikely to receive that cash stream because it is quite difficult for them to qualify for Europe.
From a profitability standpoint, they are essentially neutral, albeit they may have a few domestic cup runs. If you win it, they make a little, but otherwise, they don’t make much.
“The only things left to boost the club’s overall profitability are sponsorship and commercial money.
“A new owner won’t just do that right away. Ownership is just one component; it will take time.
Parts of at least five clubs are up for sale if you were to drop to the Premier League. It will be difficult for Wolves to find a new buyer because many clubs are looking to invest.
However, as I already stated, it won’t change anything on its own.
“With their wage bill and their position in the league, they are in a bit of a bind.”
In other news, an insider reveals the Wolves signing.
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