Kieran Maguire can’t believe £99m Wolves development
The £99million government loan taken out by Wolves makes a lot of sense given their debt payments.
That is the view of finance expert Kieran Maguire, who exclusively told Football Insider that he is confused by the criticism aimed at Wolves for securing the loan deal.
As reported by Express & Star (11 July), the Midlands club took out a £99million government loan from government agency UK Export Finance.
Football Insider revealed that Wolves owner Guo Guangchang has now loaned a total of £178million in the past four years.
The £99m loan was taken out in 2022, but details around the borrowed funds are only just being released.
Maguire believes the deal is very logical and will help the club deal with any debt structure from previous borrowings.
“I think in the case of Wolves, the £99million loan taken out in 2022 was for the restructuring of debt rather than taking on brand new borrowings,” Maguire told Football Insider’s Sean Fisher.
“Therefore, the strategy was to replace one loan with a fairly high interest rate to another one with a low rate.
“There is a lot of logic in the decision and those interest cost savings can be put into the playing budget.
“So I think this is some shrewd business done by Wolves.
“There will be some critics that say football clubs shouldn’t be taking advantage of government funding.
“But it’s not illegal and I can’t understand why there is much opposition to it. If anything I expect other clubs to follow.“
In other news, Wolves star undergoing Birmingham City medical today after deal agreed