It has been a bumpy ride for Wolves under the ownership of Fosun of late, with the club forced to clarify that they are seeking minority investment as opposed to a full takeover.
Following summers of mass player departures, there had been conjecture that Wolves’ Chinese backers were hoping to profit from their investment at Molineux.
Wolves’ status under the Premier League’s Profit and Sustainability Rules (PSR), formerly known as Financial Fair Play or FFP, was suspected to be the reason for the mass exodus. Jeff Shi, the chairman of Wolves and Fosun’s representative, claims that Wolves have never come close to committing a PSR violation and facing a fine or point deduction.
This is encouraging for their chances of obtaining funding, as Fosun is seeking £75 million for a minority interest in Wolves with the intention of reinvesting the money in their sportswear and esports businesses.
Given that Wolves are the primary brand for Fosun’s esports team and that Fosun-owned Sudu supplies their uniforms, Wolves would probably be involved in some capacity with both projects.
Given that Fosun is now pursuing a new partner in WV1, it is intriguing to learn what the company’s top executives believe about the current state of the investment landscape.
James Wang, who leads Fosun’s asset management division, has offered his perspective on the matter.
Fosun director comments on investment landscape as Wolves seek £75m cash injection
In 2021, the Chicago-based private equity firm Peak6 purchased an 8% equity share from Fosun Sports.
Football is seeing a rise in private equity investment, so it stands to reason that any further equity funding for Wolves will likewise come from that sector.
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