Economically literate wanted: fosun theories .

[Aussie_Wolf]

A lot of us in here won't be tremendously financial illiterate (In Terms of global politics) on account of having attended school in Wolverhampton

Does anyone have any genuine financial insight and theories on what fosun are doing? We will sell? Are we up for sale? Are fosun just dialling back spending for FFP reasons? ..

What's going on?

 

[Woodsetton Wolf]

The truth, nobody knows, I don t even think FOSUN know what they’re doing

 

[VancouverWolf]

A lot of us in here won't be tremendously financial illiterate (In Terms of global politics) on account of having attended school in Wolverhampton

Does anyone have any genuine financial insight and theories on what fosun are doing? We will sell? Are we up for sale? Are fosun just dialling back spending for FFP reasons? ..

What's going on?

I doubt anyone on here knows whether Fosun want to sell or not.

Leaving aside the football for a moment as your thread is about finance, Wolves finished 13 th. and would have received tv payments per their league finish.
Theres only about a £6m difference from finishing 7th. and 13th. with JL. ……not a massive difference
So not a lot has changed from a business point of view……apart from selling and buying players, of course.
Basically an average PL club. ……..not making tons of money but not racking up huge debts either.

That, afaik, is a simple summary.

 

[SingYourHeartsOut]

I can't really be ***** with it any more. People telling us we were screwed said we needed a £50m transfer profit for FFP. However this in itself is a misunderstanding as selling £50m worth or players and buying nobody is not the same thing as selling £100m and buying £50m. I'm going to ignore the new sustainability rules, as they aren't going to be the problem!

I'll try some facts (and start with saying that I'm certainly no financial expert and not all loses count for FFP).

So in
20/21 we made a £18.4 profit.
21/22 we made a £46.1 loss.
So absolute worst case is we can
22/23 we could make £77.3 loss and be within FFP

If we did that then we'd have to make an £18.4m profit again this year to maintain the 3 year limit.

So if we really pushed it, we might have to be £95m better in 23/24 than 22/23. However we've likely cut £25m in wages and raised £140m in sales with only an extra £30m or so to amortisation of extra players (albeit Collins in particular isn't much of a book value gain). So I think we'll be absolutely fine.

Trouble is to get a proper answer you'd need someone with a better brain and more information, so there is too much guesswork even for anyone with the understanding who bothers to look.

 

[surreywolf]

What China's economic problems mean for the world

Problems faced by the world's second-largest economy include a property market crisis and slow growth.

www.bbc.com

Wim ****ed mucker

 

[Wandsworth Wolf]

I was reading yesterday about the situation at Reading FC.

The club is owned by a Chinese guy and article mentioned that the big cause of their financial problems is the tightening of restrictions with money leaving China.

So I’m guessing that is an issue that will be affecting our ownership group too. Fosun may be a big global conglomerate but they still operate under the rules of the Chinese state.

 

[Mile End Wanderer]

They wanted us to be self sufficient for a long time with partial investors

If we go down they will use player sales to fund the future of the club that simple

Back to the dark times

 

[goldfish]

No expert, but a combination of club-based factors (poor return on investment, disastrous expensive signings) coupled with Fosun's cashflow problems. Possibly with a sprinkling of regional issues (no HS2 contracts) thrown in.

 

[northnorfolkwolf]

I can't really be ***** with it any more. People telling us we were screwed said we needed a £50m transfer profit for FFP. However this in itself is a misunderstanding as selling £50m worth or players and buying nobody is not the same thing as selling £100m and buying £50m. I'm going to ignore the new sustainability rules, as they aren't going to be the problem!

I'll try some facts (and start with saying that I'm certainly no financial expert and not all loses count for FFP).

So in
20/21 we made a £18.4 profit.
21/22 we made a £46.1 loss.
So absolute worst case is we can
22/23 we could make £77.3 loss and be within FFP

If we did that then we'd have to make an £18.4m profit again this year to maintain the 3 year limit.

So if we really pushed it, we might have to be £95m better in 23/24 than 22/23. However we've likely cut £25m in wages and raised £140m in sales with only an extra £30m or so to amortisation of extra players (albeit Collins in particular isn't much of a book value gain). So I think we'll be absolutely fine.

Trouble is to get a proper answer you'd need someone with a better brain and more information, so there is too much guesswork even for anyone with the understanding who bothers to look.

Someone came on here a few weeks back and said not to get so fixated on transfer dealings as wages tend to be the bigger issue when trying to keep within the rules. Our wage bill must surely have halved since the end of last season?

 

[northnorfolkwolf]

They wanted us to be self sufficient for a long time with partial investors

If we go down they will use player sales to fund the future of the club that simple

Back to the dark times

Tbh we've pretty much got a Championship squad now imo. And no, I'm not trying to be funny. These team would be mid-table Champs and that's about it.

 

[Edmund Dantes]

Plot Twist: Fosun own a top-secret cloning facility hidden deep in the Chinese countryside. Soon we will field a team of Neves, Jota, Saïss, etc but like a cyborg-Terminator version of themselves. Serious Injury to Jota? No worries, Just pull another Jota out of the cryogenic freezer. We won't even have to make a substitution because it's the same bloke.

 

[AndyWolves]

A lot of us in here won't be tremendously financial illiterate (In Terms of global politics) on account of having attended school in Wolverhampton

Does anyone have any genuine financial insight and theories on what fosun are doing? We will sell? Are we up for sale? Are fosun just dialling back spending for FFP reasons? ..

What's going on?

Bare minimum would be fosun wanting to make a profit from us. Either through the way they operate us or selling. They won't run us at a loss because why would they? We aren't a soft power thing for them, and the big wigs in China aren't into football anymore. We're purely a commercial entity.

 

[NorthWolf]

Leicester, Leeds and Burnley to sue Everton for £300 million for breaching FFP rules:

MSN

www.msn.com

Don't know if this is the correct place for this, but it could have been one of the factors in the panic to get FFP, P&S or whatever they are calling it this week, complient. It was only a matter of time before someone did this.

 

[SteveBullsKnee]

Tbh we've pretty much got a Championship squad now imo. And no, I'm not trying to be funny. These team would be mid-table Champs and that's about it.

How are they mid championship players when nearly every single one of them have played their entire career at a higher level. Makes zero sense.

 

[northnorfolkwolf]

How are they mid championship players when nearly every single one of them have played their entire career at a higher level. Makes zero sense.

Tbh I did write that just before the City game. Like most on here I was wrong about the players and GON.

 

[old wittonian]

They wanted us to be self sufficient for a long time with partial investors

If we go down they will use player sales to fund the future of the club that simple

Back to the dark times

Jeff Shi may well find that he and his dog are the only spectators in that case.

 

[old wittonian]

I doubt anyone on here knows whether Fosun want to sell or not.

Leaving aside the football for a moment as your thread is about finance, Wolves finished 13 th. and would have received tv payments per their league finish.
Theres only about a £6m difference from finishing 7th. and 13th. with JL. ……not a massive difference
So not a lot has changed from a business point of view……apart from selling and buying players, of course.
Basically an average PL club. ……..not making tons of money but not racking up huge debts either.

That, afaik, is a simple summary.

I thought each league position was worth about £2.2 million. In which case it's a little over £13 million.

 

[VancouverWolf]

I thought each league position was worth about £2.2 million. In which case it's a little over £13 million.

Oops….you’re right….typing error.
thx