Wolves owe 100 million in transfer money

[hollo]

Someone posted a graphic on wolves twitter after kevin maguire on price of football had earlier highlighted the amount of money liverpool owe to other clubs.

Is 100 million a problem or are we owed 100 million by other teams cancelling this figure out?
Is this a problem going forward when we enter the transfer market?

 

[Deak77]

I can immediately think of £41 million we're owed

 

[Nivada]

Wolves owes a lot to me this season.

 

[Rhoswolf]

Does that include potential fees for the loan players, has little relevance without more detailed information.

 

[Mile End Wanderer]

It’s one big cycle we’re also owed cash

 

[Chris H]

We’ve spent a lot more on player purchases than we’ve received on player sales (or had at 2019/20 which these figures relate to) so it makes sense we owe a lot more than we’re owed.

It’s not an issue, it just means we negotiated decent payment terms and I’m sure we will do on any further signings we make. It’s just cashflow.

 

[Deleted member LP 3925]

It’s just cashflow.

No it’s not, it’s the end of the world! We’re doomed, FFS Fosun! Relegation beckons! If only we’d pushed the boat out for Ruben Dias, Saiss is almost as evil as Semedo.

Sorry, I’ll try again.

We have a very experienced financial team of experts who know what they are doing and know that the mid to long term income stream means that this is a totally acceptable operational commitment.
So yes, @Chris H, you are perfectly correct. We will survive this!

 

[NewarkWolf]

We're doomed......

 

[Chris H]

No it’s not, it’s the end of the world! We’re doomed, FFS Fosun! Relegation beckons! If only we’d pushed the boat out for Ruben Dias, Saiss is almost as evil as Semedo.

Sorry, I’ll try again.

We have a very experienced financial team of experts who know what they are doing and know that the mid to long term income stream means that this is a totally acceptable operational commitment.
So yes, @Chris H, you are perfectly correct. We will survive this!

 

[WW1963]

It's just a microcosm of the world. Every nation on earth is in massive debt. This just about sums it up:

 

[Kingswood Wolf]

Get a refund on Fabio, will look much better.

 

[VancouverWolf]

I agree, it’s cash flow.
However, that cash flow has been drastically reduced over the last year so they may have some impact somewhere, eg, transfers maybe.
Plus, Fosun’s profit dropped by about half this last year, from £1.8 b down to £900 m. and that may affect Wolves.

On the positive side, Fosun must be quite astute when it comes to money to get where they are.

 

[Deleted member LP 3925]

Get a refund on Fabio, will look much better.

Kingswood. Stuck in the middle of a couple of Bristols, yet still miserable.

 

[SakosRightFoot]

It’s just how transfers are done. Payments are spread over a time period, usually the course of the contract for accounting purposes. It’s why it gets confusing when people think we get £100million+ every year from the tv deals and wonder why it’s not all spent on transfers. Truth is by the time we were promoted we were still paying for the early influx under Fosun.

Some clubs have started loaning against future transfer income to get some cash, think it was Lille who sold Pepe to Arsenal and did it and effectively sold the debt so they’d get less money for him but would get it upfront

 

[Lycaon]

It’s what’s called money on the never, never! It’ll catch up with every club who over spends no matter how big they are, sadly including us!
There’s only so far the bean counters can paint a rosey picture!

 

[rincewind]

Look at it this way, its considerably less than a normal years income. How many of us have had a mortgage that's far more than 1 years wages? Plus we will be owed significant amounts.

 

[AndyWolves]

This isn't a new debt we didn't know about. This is how football transfers work, very few transfers are money paid up front - instead payments are spread out on an agreed schedule.

The longer you can spread payments out the cheaper it becomes due to inflation (and also potentially avoiding the need to borrow to pay the huge fee upfront).

It's probably possible that clubs are still paying off transfer fees for players they've since sold on.

 

[Deleted member 8455jwf]

Liverpool alone owe us more than 40% of that from Jota so hardly a concern

 

[Contrarian]

It's just a microcosm of the world. Every nation on earth is in massive debt. This just about sums it up:

They can't all be in debt? Somewhere, somebody must be owed billions. It's Mendez, isn't it?

 

[Contrarian]

Liverpool alone owe us more than 40% of that from Jota so hardly a concern

In future, clubs should be allowed to sell players for points. The sale of Jota and Doherty could have given us enough points to be on the edge of the Champions League right now.

 

[Hsvwolf]

Lol......so why is the squad so thin and we’re having to play kids because we’ve lost 2 or 3 key players

 

[Wolf in Kenilworth]

We are also owed money left right and centre so fear not. It’s all Monopoly money.

 

[Lisas Husband]

Fosun’s profit dropped by about half this last year, from £1.8 b down to £900 m. and that may affect Wolves.

Just under a 6.8% drop on the previous year I fink.

Edit - that's the revenue, sorry.

 

[Fenrir_]

Not even 'net' owed is it? It's nothing to worry about

 

[northnorfolkwolf]

Just wondered which players we actually still owed money to other clubs? Neves is the only uninjured player I would regret losing this summer, so it's a little bit concerning to me to think the money owed is on the rest?

 

[Hoganstolemywife]

No it’s not, it’s the end of the world! We’re doomed, FFS Fosun! Relegation beckons! If only we’d pushed the boat out for Ruben Dias, Saiss is almost as evil as Semedo.

Sorry, I’ll try again.

We have a very experienced financial team of experts who know what they are doing and know that the mid to long term income stream means that this is a totally acceptable operational commitment.
So yes, @Chris H, you are perfectly correct. We will survive this!

I love your posts

Waiting for the usual crew to say they're concerned etc.

 

[Fenrir_]

Just wondered which players we actually still owed money to other clubs? Neves is the only uninjured player I would regret losing this summer, so it's a little bit concerning to me to think the money owed is on the rest?

Why is it concerning? Deals are structured and most deals are paid in instalments. We've bought nearly £300m of players in the past three years, owing £100m means we've already paid off most of it

 

[Mile End Wanderer]

I love your posts

Waiting for the usual crew to say they're concerned etc.

Hahahaha made me laugh

 

[WickedWolfie]

I love your posts

Waiting for the usual crew to say they're concerned etc.

Is that before or after they demand that we buy pretty much a whole new first team and forget the cost?

 

[ombyman]

Removed by admin

As funny as this is, it is also largely wrong and grossly exaggerated!

 

[Parkfieldswolf]

I have no idea of how clubs are financed or structure of transfer payments etc so I’ll trust that Fosun have it all in hand and are on the ball with it.

 

[Supadavewolf]

I have no idea of how clubs are financed or structure of transfer payments etc so I’ll trust that Fosun have it all in hand and are on the ball with it.

Just checked down the back of the sofa in case Fosun need help.

Do they accept boiled sweets with added fluff?

 

[Shergar]

It contains Norwich, Watford and Bournemouth so most probably doesn’t contain any up to date figures. It also looks a bit of a homemade spreadsheet based on speculation

 

[Deleted member 11332]

Just wondered which players we actually still owed money to other clubs? Neves is the only uninjured player I would regret losing this summer, so it's a little bit concerning to me to think the money owed is on the rest?

Everyone we've signed this season, plus probably the bigger stuff like Raul from the previous.

 

[Bawtry Wolf]

The level of naivety on here sometime beggars belief. All of the transfers and their associated fees and payments will be made via contracts and the subsequent payment plan will be contractual and therefore honoured. If we go bust then it maybe that those clubs who are owed money will be 2nd in line with creditors but I am not anticipating that so it’s not a problem.

Most people haven’t got the cash to buy a house up front so get mortgage to do so over a number of years. You are still going to pay the money not all at once. Another alternative is 0% credit from the likes of DFS. If you go into those shops and ask for a discount for cash up front it blows their minds.

All businesses do the same thing all the time, rather than get rid of all your cash purchasing stock, equipment or anything else a business will stage the payments wherever they can.

whilst not being privy to Wolves transfer dealings I would imagine that we will always try to stage payments. In some cases I am sure we pay all the money up front where the figure is small or we can take advantage of a good deal. In others we won’t. Similarly with sales we will charge higher for ‘credit’ and allowing the buying club to stage the payments. Liverpool are paying a premium for Jota as we’ve allowed them to stage the payments it doesn’t mean we won’t get the money.

 

[SteveBullsKnee]

Its been at least 15 years since you paid for transfers in full, up front and vice versa. The standard practice now is staged payments over the course of a contract.

We didnt get the £45 million for Jota in one go in the same way we didnt pay the full sums for either Silva or Semedo. UEFA are happy with this arrangement as long as it falls within the length of a players contract.

 

[Shergar]

Just check what clubs are in that list..
Doherty, Jota, Silva, Semedo and other dealings are irrelevant, just like that list.

 

[Ironfistedmonk]

We are probably owed a fair whack too, as mentioned 40 mill for Jota alone, I imagine we are still owed money for Doc and maybe even Costa and Cavaleiro

 

[Manic88]

Its been at least 15 years since you paid for transfers in full, up front and vice versa. The standard practice now is staged payments over the course of a contract.

We didnt get the £45 million for Jota in one go in the same way we didnt pay the full sums for either Silva or Semedo. UEFA are happy with this arrangement as long as it falls within the length of a players contract.

next you’ll be telling me that people don’t buy houses for cash and companies don’t build £20m warehouses with a suitcase full of cash either!

 

[SteveBullsKnee]

next you’ll be telling me that people don’t buy houses for cash and companies don’t build £20m warehouses with a suitcase full of cash either!

Crazy that people can't get the head round Jota's fee not being paid in full