Latest Deloitte report

[wolvesjoe]

https://www2.deloitte.com/content/dam/Deloitte/uk/Documents/sports-business-group/deloitte-uk-dfml22.pdf

Not sure if this has been posted and discussed, but in case it hasnt here it is.

Takeaways:

Wolves in the rich list top 20 for first time ever, coming at 17th place.

Above Everton marginally, a bit behind Leicester and West Ham.

Above Villa, Newcastle and Leeds, who do not make the top 20.

Not terribly behind Arsenal, but figures skewed as these are Covid accounts, so
matchday revenue collapses.

% of revenue on wages: 72%
Transfer balance: -12.4 euros

Comments

The financial figures are close to the maximum that can be afforded whilst still being able to stay inside the
FFP at the UEFA level, a little more scope with the less stringent Premier FFP.

Wolves' commercial revenue, and matchday revenue somewhat below their rivals in the Money League.

These two deficits are partly the same deficit, as increased attendence leads to higher commercial revenue,
(although this is also determined by profile and status).

Expanding the ground still stands out as the policy where Fosun can make the most difference to the well-being
and prospects of the club. Stadium investment is not affected by FFP, nor is youth development. But Wolves
have gone a long way in upgrading the Academy, so not much scope for investment there.

Overall, a remarkable achievement to come so far in the first five seasons of ownership. But this cycle is
coming to a close and Fosun have to examine if they have a strategy in place, which might maintain their
position or allow them to take the next step and become the most regularly successful club outside of the
established top group. Hard to imagine that without stadium expansion and development, or some inspired
management decisions.

 

[old wittonian]

https://www2.deloitte.com/content/dam/Deloitte/uk/Documents/sports-business-group/deloitte-uk-dfml22.pdf

Not sure if this has been posted and discussed, but in case it hasnt here it is.

Takeaways:

Wolves in the rich list top 20 for first time ever, coming at 17th place.

Above Everton marginally, a bit behind Leicester and West Ham.

Above Villa, Newcastle and Leeds, who do not make the top 20.

Not terribly behind Arsenal, but figures skewed as these are Covid accounts, so
matchday revenue collapses.

% of revenue on wages: 72%
Transfer balance: -12.4 euros

Comments

The financial figures are close to the maximum that can be afforded whilst still being able to stay inside the
FFP at the UEFA level, a little more scope with the less stringent Premier FFP.

Wolves' commercial revenue, and matchday revenue somewhat below their rivals in the Money League.

These two deficits are partly the same deficit, as increased attendence leads to higher commercial revenue,
(although this is also determined by profile and status).

Expanding the ground still stands out as the policy where Fosun can make the most difference to the well-being
and prospects of the club. Stadium investment is not affected by FFP, now is youth development. But Wolves
have gone a long way in upgrading the Academy, so not much scope for investment there.

Overall, a remarkable achievement to come so far in the first five seasons of ownership. But this cycle is
coming to a close and Fosun have to examine if they have a strategy in place, which might maintain their
position or allow them to take the next step and become the most regularly successful club outside of the
established top group. Hard to imagine that without stadium expansion and development, or some inspired
management decisions.

Thanks for that.

 

[Black Country Wanderer]

Yes these are last years figures basically,they came out a month or so back i believe
Expect a significant increase this season
As you say excellent results in a very difficult period,Fosun out lol

 

[theweave]

https://www2.deloitte.com/content/dam/Deloitte/uk/Documents/sports-business-group/deloitte-uk-dfml22.pdf

Not sure if this has been posted and discussed, but in case it hasnt here it is.

Takeaways:

Wolves in the rich list top 20 for first time ever, coming at 17th place.

Above Everton marginally, a bit behind Leicester and West Ham.

Above Villa, Newcastle and Leeds, who do not make the top 20.

Not terribly behind Arsenal, but figures skewed as these are Covid accounts, so
matchday revenue collapses.

% of revenue on wages: 72%
Transfer balance: -12.4 euros

Comments

The financial figures are close to the maximum that can be afforded whilst still being able to stay inside the
FFP at the UEFA level, a little more scope with the less stringent Premier FFP.

Wolves' commercial revenue, and matchday revenue somewhat below their rivals in the Money League.

These two deficits are partly the same deficit, as increased attendence leads to higher commercial revenue,
(although this is also determined by profile and status).

Expanding the ground still stands out as the policy where Fosun can make the most difference to the well-being
and prospects of the club. Stadium investment is not affected by FFP, nor is youth development. But Wolves
have gone a long way in upgrading the Academy, so not much scope for investment there.

Overall, a remarkable achievement to come so far in the first five seasons of ownership. But this cycle is
coming to a close and Fosun have to examine if they have a strategy in place, which might maintain their
position or allow them to take the next step and become the most regularly successful club outside of the
established top group. Hard to imagine that without stadium expansion and development, or some inspired
management decisions.

Any idea where we were pre-fosun? Or maybe more comparable when we were last in the Premier league?

 

[wolvesjoe]

Any idea where we were pre-fosun? Or maybe more comparable when we were last in the Premier league?

If you go to the Deloitte site and ferret through the archives then the figures will be there for previous
stays in the Premier.

The jump from Championship to Premier is in this document, I think it was from 38m up to 151m, or
something of that order.

Broadcast money obviously overwhelmingly most important, then final league position, then European
competition. Then commercial and finally matchday.

 

[SmokeyGB]

https://www2.deloitte.com/content/dam/Deloitte/uk/Documents/sports-business-group/deloitte-uk-dfml22.pdf

Not sure if this has been posted and discussed, but in case it hasnt here it is.

Takeaways:

Wolves in the rich list top 20 for first time ever, coming at 17th place.

Above Everton marginally, a bit behind Leicester and West Ham.

Above Villa, Newcastle and Leeds, who do not make the top 20.

Not terribly behind Arsenal, but figures skewed as these are Covid accounts, so
matchday revenue collapses.

% of revenue on wages: 72%
Transfer balance: -12.4 euros

Comments

The financial figures are close to the maximum that can be afforded whilst still being able to stay inside the
FFP at the UEFA level, a little more scope with the less stringent Premier FFP.

Wolves' commercial revenue, and matchday revenue somewhat below their rivals in the Money League.

These two deficits are partly the same deficit, as increased attendence leads to higher commercial revenue,
(although this is also determined by profile and status).

Expanding the ground still stands out as the policy where Fosun can make the most difference to the well-being
and prospects of the club. Stadium investment is not affected by FFP, nor is youth development. But Wolves
have gone a long way in upgrading the Academy, so not much scope for investment there.

Overall, a remarkable achievement to come so far in the first five seasons of ownership. But this cycle is
coming to a close and Fosun have to examine if they have a strategy in place, which might maintain their
position or allow them to take the next step and become the most regularly successful club outside of the
established top group. Hard to imagine that without stadium expansion and development, or some inspired
management decisions.

 

[MattH]

View attachment 28146View attachment 28147

So matchday revenue is less than 0.5% of our income. Shows how daft it was to raise ticket prices steeply and exclude some less well off fans for what, budging that up by 0.1% or so?

 

[Chris H]

So matchday revenue is less than 0.5% of our income. Shows how daft it was to raise ticket prices steeply and exclude some less well off fans for what, budging that up by 0.1% or so?

That was the behind closed doors season, the 0.5% was the Man Utd game, normally it’d be more than that.

 

[MattH]

That was the behind closed doors season, the 0.5% was the Man Utd game, normally it’d be more than that.

Ah of course!

 

[Flea]

We may not be bigger than US Steel(have been watching Godfather recently).
However,we are bigger than AC Milan and Everton.
Not all is doom and gloom me thinks.

 

[wolvesjoe]

Headline financial information for 2020/21

Wolves have released headline financial information for the year ending 31st May 2021, confirming a net profit, excluding exceptional items, of £18.4m d...

www.wolves.co.uk

Some interesting breakdown here. Suggests this season's figures will be healthy, and in good shape for investment on players

 

[Hoganstolemywife]

Headline financial information for 2020/21

Wolves have released headline financial information for the year ending 31st May 2021, confirming a net profit, excluding exceptional items, of £18.4m d...

www.wolves.co.uk

Some interesting breakdown here. Suggests this season's figures will be healthy, and in good shape for investment on players

Be interesting to see our strategy with this in mind.

 

[glorybox]

How do Villa and Everton avoid FFP sanctions..?

 

[CelebrityWolf]

We may not be bigger than US Steel(have been watching Godfather recently).
However,we are bigger than AC Milan and Everton.
Not all is doom and gloom me thinks.

Yeah of course we are bigger than the Italian champions AC Milan

These figures mean very little given the league we are in

 

[SuperGran]

How do Villa and Everton avoid FFP sanctions..?

By making business decisions not to enter uefa competitions

 

[welshy]

I get the feeling this thread would be on 3 or 4 pages by now had the results of been Wolves fail to make the top 30.

This just shows how good a job Fosun and Jeff are doing.

 

[Stoichkov]

This just shows how good a job Fosun and Jeff are doing.

Heretic! Heretic!!! Burn him

 

[SteveBullsKnee]

It just shows that while some on here are absolutely creaming themselves over Villa (see Leeds previously and Fulham before that) that Fosun actually DO know what they’re doing. It might take a lot of patience from fans but being self sustaining along with working with the most important man in world football will get Fosun closer to the footballing summit than just spaffing 100s of millions on players with no resale value.

 

[Sussex Wolf]

https://www2.deloitte.com/content/dam/Deloitte/uk/Documents/sports-business-group/deloitte-uk-dfml22.pdf

Not sure if this has been posted and discussed, but in case it hasnt here it is.

Takeaways:

Wolves in the rich list top 20 for first time ever, coming at 17th place.

Above Everton marginally, a bit behind Leicester and West Ham.

Above Villa, Newcastle and Leeds, who do not make the top 20.

Not terribly behind Arsenal, but figures skewed as these are Covid accounts, so
matchday revenue collapses.

% of revenue on wages: 72%
Transfer balance: -12.4 euros

Comments

The financial figures are close to the maximum that can be afforded whilst still being able to stay inside the
FFP at the UEFA level, a little more scope with the less stringent Premier FFP.

Wolves' commercial revenue, and matchday revenue somewhat below their rivals in the Money League.

These two deficits are partly the same deficit, as increased attendence leads to higher commercial revenue,
(although this is also determined by profile and status).

Expanding the ground still stands out as the policy where Fosun can make the most difference to the well-being
and prospects of the club. Stadium investment is not affected by FFP, nor is youth development. But Wolves
have gone a long way in upgrading the Academy, so not much scope for investment there.

Overall, a remarkable achievement to come so far in the first five seasons of ownership. But this cycle is
coming to a close and Fosun have to examine if they have a strategy in place, which might maintain their
position or allow them to take the next step and become the most regularly successful club outside of the
established top group. Hard to imagine that without stadium expansion and development, or some inspired
management decisions.

Thanks for sharing and the commentary. You’re right the initial growth phase has passed and the question is what next.

One approach would be consolidating our PL position and maintaining stability. Revenue and brand value would continue to grow incrementally, and financially the club would minimise risk and need for further cash injection. But as an investment company, this may not excite Fosun sufficiently to continue its ownership since it’s equity in Wolves could be working harder elsewhere.

To continue a faster rate of growth, the obvious next step would be European football, and ultimately Champions League. As we’ve seen, even a good run in the Europa provides a big revenue injection, and the CL even more so. Beyond that, playing in Europe also accelerates brand recognition and the knock on benefit for commercial revenue such as sponsorship deals. But, as others have found, chasing Europe also puts pressure on costs, since you need a squad and coach capable of regular qualification and maintaining a run in these competitions while not risking domestic league competitiveness. Worse case, we end up in a relegation scrap, like others who chased the dream. We got lucky by qualifying for Europe early but since then, we’ve seen how hard it is to repeat it.

So stick or twist?

 

[Hoganstolemywife]

It just shows that while some on here are absolutely creaming themselves over Villa (see Leeds previously and Fulham before that) that Fosun actually DO know what they’re doing. It might take a lot of patience from fans but being self sustaining along with working with the most important man in world football will get Fosun closer to the footballing summit than just spaffing 100s of millions on players with no resale value.

True. It's a lot let sexy than buying players like Bruno Guimarararares (maybe spelt incorrectly) though, and doesn't yield immediate results. Football (and society) are beasts of immediacy now, hence the tumult

 

[SingYourHeartsOut]

I see us like a space shot currently. We were on the ground, Fosun lit the rocket and we shot miles in the air. The rocket ran out of fuel, but momentum kept us going up. Now we've pretty much reached maximum height. Some people (I was very much in this camp a while ago), say 'look where we were and where we are'. Others say 'it's great to be here, but have you noticed the engines have cut out?'. Hopefully there's some boosters kicking in imminently!

 

[inaglasshouse]

We are doing well financially, thank you Fosun. Talking of money it's a shame they could not ease the burden on ordinary fans. I guess it must be difficult to appreciate the difference that it might make from so far away and that it may actually have financial benefits by keeping more existing customers and making sure families with the next generation in tow and young working class men can attend not just more gammons.
Can we also have a new Steve Bull stand, maybe we could share Notts Forest plans for their new stand to save money, just remember to order a different colour this time.

 

[wolvesjoe]

Thanks for sharing and the commentary. You’re right the initial growth phase has passed and the question is what next.

One approach would be consolidating our PL position and maintaining stability. Revenue and brand value would continue to grow incrementally, and financially the club would minimise risk and need for further cash injection. But as an investment company, this may not excite Fosun sufficiently to continue its ownership since it’s equity in Wolves could be working harder elsewhere.

To continue a faster rate of growth, the obvious next step would be European football, and ultimately Champions League. As we’ve seen, even a good run in the Europa provides a big revenue injection, and the CL even more so. Beyond that, playing in Europe also accelerates brand recognition and the knock on benefit for commercial revenue such as sponsorship deals. But, as others have found, chasing Europe also puts pressure on costs, since you need a squad and coach capable of regular qualification and maintaining a run in these competitions while not risking domestic league competitiveness. Worse case, we end up in a relegation scrap, like others who chased the dream. We got lucky by qualifying for Europe early but since then, we’ve seen how hard it is to repeat it.

So stick or twist?

While the overall picture looks healthy, and due recognition to Fosun for what they have achieved, they have still made critical mistakes.

We were in the running for a top 6 finish this January, and this was stymied by catastrophic decisions in my view, (letting Adama go, and not reinforcing the midfield).

We have arguably been a good midfielder short for the last 3 seasons, and this may have harmed the club significantly.

If the stadium had been expanded and realised a 40,000 average this last season, rather than a 31,500, that would have represented an approximate 5% yield on investment, huge increase in equity value of the club, and been a major attraction to players, coaches and a new layer of fans. We can acknowledge that this probably down to combination of Covid and geopolitical tensions, but it still represents a failure for the club's interests.

Just underpins that the accumulated credit Fosun have earned doesnt necessarily translate into continued success. All the other clubs of comparable size and potential will be updating and upgrading as the Premier league continues its outstanding appeal. Wolves have a good financial base, real standing in the game, and the Portuguese/Mendes connection which has been so fruitful. But they really have to up their game now.

 

[Sussex Wolf]

While the overall picture looks healthy, and due recognition to Fosun for what they have achieved, they have still made critical mistakes.

We were in the running for a top 6 finish this January, and this was stymied by catastrophic decisions in my view, (letting Adama go, and not reinforcing the midfield).

We have arguably been a good midfielder short for the last 3 seasons, and this may have harmed the club significantly.

If the stadium had been expanded and realised a 40,000 average this last season, rather than a 31,500, that would have represented an approximate 5% yield on investment, huge increase in equity value of the club, and been a major attraction to players, coaches and a new layer of fans. We can acknowledge that this probably down to combination of Covid and geopolitical tensions, but it still represents a failure for the club's interests.

Just underpins that the accumulated credit Fosun have earned doesnt necessarily translate into continued success. All the other clubs of comparable size and potential will be updating and upgrading as the Premier league continues its outstanding appeal. Wolves have a good financial base, real standing in the game, and the Portuguese/Mendes connection which has been so fruitful. But they really have to up their game now.

Agree completely. With better decisions in the last couple of transfer windows, we would have qualified for Europe this season. I think CL would have been a stretch too far, but Europa League was certainly in reach. Financially that’s a significant miss and hopefully a lesson to Jeff and Fosun.

 

[Bryce]

What it proves is that balancing the books and making money is key to Fosuns strategy. ( we knew that surely). They also want us to be pretty much self funding. That is different to the clubs with deep pocket owners so we will budget accordingly. I think the Sa and Chiquinho signings and far more of an indicator how and where we are shopping for the future . It is why I dont get excited at every rumour concerning hugher profile players like Palhinha. I dont think we will do much shopping it that type of pool if I am honest.

 

[Bryce]

Agree completely. With better decisions in the last couple of transfer windows, we would have qualified for Europe this season. I think CL would have been a stretch too far, but Europa League was certainly in reach. Financially that’s a significant miss and hopefully a lesson to Jeff and Fosun.

This doesnt get discussed enough for me. All players are ambitious and want to do well. The fact that the premier league is a 6 club monopoly at best for all the honours , means that the sky six will always have the clout to sign the best playes. It is why getting a europe place is so important as it can attract those quality players like a new Jota or new Neves who were young and up and coming. I know it wasnt europe then but in their first year they picked up a championship medal and they came here as pretty much unknowns, so the principle still applies. We would have been a more attractive proposition as a club in europe , I have no doubt. It is what makes the decisoon not to bolster the squad in January , when we were on a roll and Lage ended up MOTM, a poor decision from Fosun. I hope they learn from it.

 

[SingYourHeartsOut]

Just to remind people that although we might have got a bit excited for a brief time, we did finish just the mere 20 points off the CL places.

 

[Jefe]

Just underpins that the accumulated credit Fosun have earned doesnt necessarily translate into continued success. All the other clubs of comparable size and potential will be updating and upgrading as the Premier league continues its outstanding appeal. Wolves have a good financial base, real standing in the game, and the Portuguese/Mendes connection which has been so fruitful. But they really have to up their game now.

Indeed. We've already seen West Ham surpass us since the heady days of the PL seasons 1 and 2, Brighton just finished above us, Leicester were in a false position with their injury crisis and will probably kick on, as will surely Newcastle. Who's to say Viera won't take Palace to new heights as well? Yanited will probably never be so disjointed again. It cannot be understated how much of an opportunity this season was to capitalise on the relative weakness of our rivals, one that we didn't take.

 

[Deleted member 8455jwf]

While the overall picture looks healthy, and due recognition to Fosun for what they have achieved, they have still made critical mistakes.

We were in the running for a top 6 finish this January, and this was stymied by catastrophic decisions in my view, (letting Adama go, and not reinforcing the midfield).

We have arguably been a good midfielder short for the last 3 seasons, and this may have harmed the club significantly.

If the stadium had been expanded and realised a 40,000 average this last season, rather than a 31,500, that would have represented an approximate 5% yield on investment, huge increase in equity value of the club, and been a major attraction to players, coaches and a new layer of fans. We can acknowledge that this probably down to combination of Covid and geopolitical tensions, but it still represents a failure for the club's interests.

Just underpins that the accumulated credit Fosun have earned doesnt necessarily translate into continued success. All the other clubs of comparable size and potential will be updating and upgrading as the Premier league continues its outstanding appeal. Wolves have a good financial base, real standing in the game, and the Portuguese/Mendes connection which has been so fruitful. But they really have to up their game now.

5% YoY yield in investment on the stadium vs an interest rate of (at an absolute minimum) 2.6% on the loan we'd have to take (likely over 15ish years) is a really poor investment strictly from a numbers perspective. Especially as the base rate rose recently, not to mention the cost of construction materials has skyrocketed.

For e.g of that yield, the US government bonds which are the safest investments on the planet yield at around 2.8% over 10 years.

The numbers just don't make sense, unless we got an interest rate of like sub 2% which is impossible