CelebrityWolf
Just doesn't shut up
- Joined
- Oct 17, 2013
- Messages
- 6,292
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It’s an accounting transaction. Fosun invested 126m into Wolves. That was carried as debt on Wolves books, which means that Fosun could probably claim a tax deduction against it, and in the event Wolves went bankrupt, they would get priority in getting that money back. They wrote it off. That means it’s now effectively an extra 126m of equity Fosun have in the club should they sell it. On their accounts, it just moves from one entry to another. For Fosun and Wolves, it’s simply an accounting transaction. There was no transfer of cash. Wolves now look slightly more attractive to a potential buyer.
It’s not the same as the example you gave. If I wrote off the tenner I lent you, I don’t get to sell you for a tenner more in the future
And lets be honest, that is the plan here. Fosun get a proper offer and they will bail 100%