Wolves to be Sold or IPO'd by Fosun?

[SanFranWolf]

According to Transfermarkt our net spend on players, which peaked with a net positive investment of £83.34m in season 19/20 has since reduced to just £5.49m. (See table below).

Fosun groups reported revenue in 2019 was $20.7bn USD

Guo Guanchang is reported to have a net fortune of $5.3bn USD

Prior to Covid in 2019, The FT reported that Fosun was looking to sell a minority stake in the football club worth between $50-$100m. In the article Shi alluded that it was Fosuns way to gauge interest in a possible IPO.

Search Google for terms Wolves and IPO for the Full Financial Times full article which is not behind a paywall.

Fosun tests IPO appetite with Wolves stake sale

Chinese conglomerate says sale of holding aims to gauge wider interest for sports listing

www.ft.com

In October last year it was reported that Fosun had sold a minority stake to US private equity firm PEAK6 who are based in Chicago

U.S. Investor Takes Stake in U.K.’s Wolverhampton Wanderers FC

Peak6 Group LLC has taken a minority stake in Wolverhampton Wanderers FC, another sign of American investors increasing their influence across European soccer.

www.bloomberg.com

Fosun bought Wolves from Steve Morgan in 2016 for £45m.

For those familiar with the world of Private Equity and Holding companies, is this throttling down of investment indicative that a sale of the club or an IPO might be coming?

Season	Total Value of Arrivals	Total Value of Departures	Balance
2021/2022	£ 33.84m	£28.35m	£5.49m
2020/2021	£79.02m	£71.28m	£7.74m
2019/2020	£105.03m	£21.69m	£83.34m
2018/2019	£104.48m	£89.62m	£14.86m
2018/2017	£22.15m	£5.69m	£16.46m

 

[S G Wolves]

Wolves won't be sold by Fosun anytime soon.

 

[Monketron]

It's been said a few times, the plan from Fosun, shown in the leaked emails, was to always to do what they've done. Invest heavily at the start to get us established in the Prem then use player transfers/TV money to let the club fund itself with little financial input from the owners.

 

[Oliwolf44]

nope. and coady aint going to newcastle either. people who think either happening dont have a clue.

 

[Leominster_Wolf]

 

[Nige100]

FOSUN ain’t selling and I don’t want them to do so. For 40 odd years give or take the few years we spent in the top league I dreamt of supporting a mid table top flight club. We are now an established PL side. We have to give them the respect they deserve for giving us that.

 

[Dan G WWFC]

It's been said a few times, the plan from Fosun, shown in the leaked emails, was to always to do what they've done. Invest heavily at the start to get us established in the Prem then use player transfers/TV money to let the club fund itself with little financial input from the owners.

This, scout well and buy players for cheap. Plan wasn't to be the next Man City but be an Everton

 

[Bill S Preston Esq.]

According to Transfermarkt our net spend on players, which peaked with a net positive investment of £83.34m in season 19/20 has since reduced to just £5.49m. (See table below).

Fosun groups reported revenue in 2019 was $20.7bn USD

Guo Guanchang is reported to have a net fortune of $5.3bn USD

Prior to Covid in 2019, The FT reported that Fosun was looking to sell a minority stake in the football club worth between $50-$100m. In the article Shi eluded that it was Fosuns way to gauge interest in a possible IPO.

Search Google for terms Wolves and IPO for the Full Financial Times full article which is not behind a paywall.

Fosun tests IPO appetite with Wolves stake sale

Chinese conglomerate says sale of holding aims to gauge wider interest for sports listing

www.ft.com

In October last year it was reported that Fosun had sold a minority stake to US private equity firm PEAK6 who are based in Chicago

U.S. Investor Takes Stake in U.K.’s Wolverhampton Wanderers FC

Peak6 Group LLC has taken a minority stake in Wolverhampton Wanderers FC, another sign of American investors increasing their influence across European soccer.

www.bloomberg.com

Fosun bought Wolves from Steve Morgan in 2016 for £45m.

For those familiar with the world of Private Equity and Holding companies, is this throttling down of investment indicative that a sale of the club or an IPO might be coming?

Season	Total Value of Arrivals	Total Value of Departures	Balance
2021/2022	£ 33.84m	£28.35m	£5.49m
2020/2021	£79.02m	£71.28m	£7.74m
2019/2020	£105.03m	£21.69m	£83.34m
2018/2019	£104.48m	£89.62m	£14.86m
2018/2017	£22.15m	£5.69m	£16.46m

There's only one season where expenditure blew the doors off of the income. Relax, you may get a hernia.

 

[SoCal_Wolf]

In addition, people conveniently forget that we were under UEFA FFP restrictions the last couple of years.

 

[Sussex Wolf]

Think the OP raises an interesting question. In my opinion, no I don’t think they are considering an IPO anytime soon. Don’t think it’s a good market for a football IPO, and therefore they would not maximise shareholder value for Fosun. Likely better value from a private sale, and I think likely they would prefer to sell a large minority stake, not their entire interest. However, if they see the value growth of Wolves as an asset plateauing, and no obvious opportunities to grow it faster, then yes they may well sell a controlling interest.

 

[SingYourHeartsOut]

Et tu @SanFranWolf ?

This is how I see it.

There is now way that we will ever be a top 4 club. Sorry to say that, we might finish in the top 4 sometime, but we'll never be a top 4 club. They sell out 60k every week, they have massive income streams, they can pay players 200k and far more. We're never going to be in that league. Fosun could probably have bought into that level, but if you want to make money you can still end up with a bitter mess like Man U. Chelsea and Man City are just vanity projects.

So a top half Prem club (like I've dreamed of supporting for decades) is the top we'll be in the foreseeable. Fosun will want to keep us there to provide a platform for top young talent, they'll keep signing players that they think will increase in value. They'll make a few quid, just as they always intended to. I'll confess I hoped for the 'soft power' option where we were a flagship for them, but I think that was always a myth.

 

[sc91]

I know a few things that many don't on this subject. NDA on the subject but Fosun would be very happy to sell is a decent observation to be made on their running.

 

[SanFranWolf]

In addition, people conveniently forget that we were under UEFA FFP restrictions the last couple of years.

Don’t want to get off topic, please Check your facts on that one mate.

 

[wwbug]

It's been said a few times, the plan from Fosun, shown in the leaked emails, was to always to do what they've done. Invest heavily at the start to get us established in the Prem then use player transfers/TV money to let the club fund itself with little financial input from the owners.

So we loan out Traore and ............

 

[Titch]

In addition, people conveniently forget that we were under UEFA FFP restrictions the last couple of years.

We are not!

 

[kentish wolf]

4 seasons in the prem and a 5th all but certain, something that has never been achieved by previous owners of the club.
That is the plus side.
If our best players gradually drift away through lack of investment and NO European football then we will.only go one way.
I have enjoyed this season more than I thought I would but Lage needs support if we are going to push on
Over to you Fosun!!

 

[OLDGOLD]

It's been said a few times, the plan from Fosun, shown in the leaked emails, was to always to do what they've done. Invest heavily at the start to get us established in the Prem then use player transfers/TV money to let the club fund itself with little financial input from the owners.

Indeed, and also alluded to ? Last year that they would look to offload some of the club to other investors to generate revenue.

 

[Willywolf]

Forgive me if this is a silly question, but what does IPO’d mean?

 

[SoCal_Wolf]

We are not!

Don’t want to get off topic, please Check your facts on that one mate.

I've checked my facts. We were under an agreement with UEFA for breaching FFP:

From The Athletic (there are other sources as well)

What are the consequences of breaching these rules? UEFA have, via a settlement agreement, handed Wolves a fairly nominal fine of up to £540,000, which will be taken out of money UEFA owes Wolves from this season’s Europa League run (Wolves have earned around £7.8 million in prize money for reaching the quarter-finals and will win a further £10 million if they go all the way and win the competition).

A second punishment — if they’re in Europe next season (and they’d have to win the Europa League to do so) their squad of 25 registered players will be cut to 23. Anyone au fait with Wolves under Nuno will quickly realise this isn’t an issue.

Thirdly, employee benefits expenses are to be restricted.

Fourthly and most pertinently, Wolves now have to restrict their losses to £27 million for the financial year ending in 2020. And over the three-year period of 2019, 2020 and 2021, they must break even.

It's pertinent to the topic because you may be misreading the reasons why we have had low to zero net spending in the past couple of fiscal years. I agree with others that FOSUN is not preparing to sell--too many other long-term investments/plans occurring for them to pull up stakes in my opinion (see eSports, record deals, Grasshoppers link with young talent, etc.)

 

[IrchyWolf]

Forgive me if this is a silly question, but what does IPO’d mean?

Initial Public Offering - selling shares from a private holding to members of the public and other companies.

 

[SanFranWolf]

I've checked my facts. We were under an agreement with UEFA for breaching FFP:

From The Athletic (there are other sources as well)

It's pertinent to the topic because you may be misreading the reasons why we have had low to zero net spending in the past couple of fiscal years. I agree with others that FOSUN is not preparing to sell--too many other long-term investments/plans occurring for them to pull up stakes in my opinion (see eSports, record deals, Grasshoppers link with young talent, etc.)

We were under Financial Fair play rules but that expired midway through last year.

 

[WickedWolfie]

Think the OP raises an interesting question. In my opinion, no I don’t think they are considering an IPO anytime soon. Don’t think it’s a good market for a football IPO, and therefore they would not maximise shareholder value for Fosun. Likely better value from a private sale, and I think likely they would prefer to sell a large minority stake, not their entire interest. However, if they see the value growth of Wolves as an asset plateauing, and no obvious opportunities to grow it faster, then yes they may well sell a controlling interest.

An obvious question: why would they wish to retain a minority stake?

 

[PTW]

This, scout well and buy players for cheap. Plan wasn't to be the next Man City but be an Everton

But does anyone still believe that was the plan? If so that came out more of delusion than good sense.

 

[whitnash wolf ex.dewsbury]

An obvious question: why would they wish to retain a minority stake?

for dividends if we started making lots of money.
but if you believe Shi we are part of Fosun that they want to keep long term

 

[Kebab Warrior]

According to Transfermarkt our net spend on players, which peaked with a net positive investment of £83.34m in season 19/20 has since reduced to just £5.49m. (See table below).Fosun groups reported revenue in 2019 was $20.7bn USD

Guo Guanchang is reported to have a net fortune of $5.3bn USD

Prior to Covid in 2019, The FT reported that Fosun was looking to sell a minority stake in the football club worth between $50-$100m. In the article Shi eluded that it was Fosuns way to gauge interest in a possible IPO.

Search Google for terms Wolves and IPO for the Full Financial Times full article which is not behind a paywall.

Fosun tests IPO appetite with Wolves stake sale

Chinese conglomerate says sale of holding aims to gauge wider interest for sports listing

www.ft.com

In October last year it was reported that Fosun had sold a minority stake to US private equity firm PEAK6 who are based in Chicago

U.S. Investor Takes Stake in U.K.’s Wolverhampton Wanderers FC

Peak6 Group LLC has taken a minority stake in Wolverhampton Wanderers FC, another sign of American investors increasing their influence across European soccer.

www.bloomberg.com

Fosun bought Wolves from Steve Morgan in 2016 for £45m.

For those familiar with the world of Private Equity and Holding companies, is this throttling down of investment indicative that a sale of the club or an IPO might be coming?

Season	Total Value of Arrivals	Total Value of Departures	Balance
2021/2022	£ 33.84m	£28.35m	£5.49m
2020/2021	£79.02m	£71.28m	£7.74m
2019/2020	£105.03m	£21.69m	£83.34m
2018/2019	£104.48m	£89.62m	£14.86m
2018/2017	£22.15m	£5.69m	£16.46m

l also wondered!

 

[WickedWolfie]

for dividends if we started making lots of money.
but if you believe Shi we are part of Fosun that they want to keep long term

I get that but any new owner might well adopt a very different, possibly much higher risk, strategy and being minority owners they wouldn't be able to impact that.

 

[WeAreTheWolvesII]

Et tu @SanFranWolf ?

This is how I see it.

There is now way that we will ever be a top 4 club. Sorry to say that, we might finish in the top 4 sometime, but we'll never be a top 4 club. They sell out 60k every week, they have massive income streams, they can pay players 200k and far more. We're never going to be in that league. Fosun could probably have bought into that level, but if you want to make money you can still end up with a bitter mess like Man U. Chelsea and Man City are just vanity projects.

So a top half Prem club (like I've dreamed of supporting for decades) is the top we'll be in the foreseeable. Fosun will want to keep us there to provide a platform for top young talent, they'll keep signing players that they think will increase in value. They'll make a few quid, just as they always intended to. I'll confess I hoped for the 'soft power' option where we were a flagship for them, but I think that was always a myth.

I agree we will never reach that level but the Premier League is quickly becoming even harder.

You say top 4 but as we know it's a top six. If Newcastle survive it's a top seven.

As you say, anything can happen in one season, but over a 5-10 year period we will finish below those clubs way more often than not. That means 8th can be the best we do!

Villa, West Ham, Everton will always be capable of attracting higher value players than us.

The key point with those teams, who people mock, is that we've finished above them after spending like crazy. That's what we did when Fosun took over and we're still benefiting from the massive spending spree with those players (Neves, Jimenez, Moutinho etc.) They don't last forever and then those other clubs overtake us.

Basically, we could quickly become a bottom half side and then you're in a position where you could go down.

Can you sustain that when other teams will spend (or have shown they can) like Leeds, Palace?

Even if we go down the route we appear to be. Are we better than Southampton, Brighton and maybe even Brentford when it comes to identifying bargains and selling on? These clubs are experts at it and we'll be trying to join that party.

It will get very hard very quickly if you don't spend (sad reality of football at this level). Do Fosun need that?

For the record I think there's no chance of them selling us or anything but like you I think we've peaked now and they will know that too.

 

[sillytuna]

I know a few things that many don't on this subject. NDA on the subject but Fosun would be very happy to sell is a decent observation to be made on their running.

It's not rocket science if you look at the investor they brought in.

 

[whitnash wolf ex.dewsbury]

I get that but any new owner might well adopt a very different, possibly much higher risk, strategy and being minority owners they wouldn't be able to impact that.

would then sell their shares.but as I said Shi said we are part of the Fosun family

 

[WickedWolfie]

would then sell their shares.but as I said Shi said we are part of the Fosun family

Said shares would of course then be worth less. All hypothetical as you say.

 

[Deleted member 9202LYK]

This, scout well and buy players for cheap. Plan wasn't to be the next Man City but be an Everton

“We want to be the best,” he said. “I believe over the long term we can win the Premier League.

Jeff Shi, Sunday Times, Jan 13,2019.

 

[Eastyorksyeltz]

Initial Public Offering - selling shares from a private holding to members of the public and other companies.

And it wasn't a silly question. I very much doubt if half of the people using it in their posts could have answered it.

 

[Hpoolfella]

Look at Leeds, they have sold a stake into the club to the Owners of the San Francisco 49ers - they have spent diddly squat. I think we have prudent owner that want the club to operate at a certain level and to be self sustainable, however with the wages etc in football for the club to be self sufficient it would mean a massive investment in increasing the ground. I would rather be where we are than be the likes of Everton or the Vile that you can see are breaking FFP year in year out.

 

[SteveBullsKnee]

FOSUN ain’t selling and I don’t want them to do so. For 40 odd years give or take the few years we spent in the top league I dreamt of supporting a mid table top flight club. We are now an established PL side. We have to give them the respect they deserve for giving us that.

Exactly this. The sheer amount of disrespect to some very shrewd owners is appalling

 

[JamesWolves]

This, scout well and buy players for cheap. Plan wasn't to be the next Man City but be an Everton

Thats a terrifying thought

 

[whitnash wolf ex.dewsbury]

For Fosun we are a very small part of their business.
they have invested billions in the first private hst. in China.
but they take long term views(compared to the U.K.) and will be running it for 30 years
Shi probably got carried away with our promotion and started comparing us to the scum 6

 

[Sussex Wolf]

An obvious question: why would they wish to retain a minority stake?

I think it more likely they would initially sell a minority stake, and retain majority control until selling the rest of the business. However, if a majority buyer brought in additional investment and synergies to grow the business, then a retained minority stake could grow in value and be sold later for higher value. A number of PL football sales / takeovers over the years have involved staged sales of differing stakes.

 

[Manic88]

I know a few things that many don't on this subject. NDA on the subject but Fosun would be very happy to sell is a decent observation to be made on their running.

ITK but NDA?

That’s how the got me with the Kennedy assassination. My mate Lord Lucan is looking into it for me

 

[Manic88]

How many football clubs are public companies these days? Doesn’t make too much sense as there is a ceiling on how much they can grow, only works if you’re manoo and have enough fans that want to own a bit for sentimental reasons.

Plus if we IPO and there is no moneybags owner to bitch about…Molmix will be down to one new thread a week and will have to close

 

[Leominster_Wolf]

In all seriousness whilst Fosun could sell us, I don’t see why they would after setting up fosun sports last year.
as I see it most of that is built around wolves and particularly wolves IP.
sale of the club and/or losing the controlling stake in the club would jeopardise that. Anyone buying the club or taking a majority shareholding would not want to lose the IP of the brand.

it’s been no secret fosun are open to ’minority’ investment, particularly from partners who would have a vested interest and/or skill set or expertise to increase the value of ‘the brand’. I know people mock and poo poo the esports thing, but that is where the exponential growth is. I don’t get it, don’t understand or see the appeal, but others do…. And if I ran wolves or fosun sports I’d be just as glad to take their money as our current owners are.

Maybe I am missing the point completely but I don’t see any benefit to fosun in selling wolves or even a majority stake.