Kieran Maguire: Wolves owners set for ‘cash injection’ amid £30m reveal
Wolves owners Fosun are likely seeking investment as a result of the decline in their wider business empire.
That is the view of finance guru Kieran Maguire, speaking exclusively to Football Insider about the Chinese company’s current cash crisis.
The company, which describes itself as a “global innovation-driven consumer group”, has reported debts of £17billion and is selling off assets of £2bn to help raise funds.
The Times reported on Thursday (8 December) that Fosun is now seeking new investment in Wolves, although they insist the club is not open to full takeover offers.
It is also claimed that the club have recently secured £29.7m of loans secured against transfer instalments owed for Matt Doherty and Diogo Jota.
Maguire assessed the merits of Fosun’s strategy of seeking external investment and what it might mean for Wolves themselves.
“Wolves owners will have seen the likes of Man City sell a minority stake in the club for a significant chunk of money,” he told Football Insider’s Adam Williams.
“They will have seen that similar could potentially happen at Liverpool. They will hope to benefit from such a route themselves.
“The benefit to them would be a cash injection, although I don’t think there would be a cash impact as far as Wolves are concerned.
“But given the lockdown situation we have seen in China, anything that can improve cash flow for a parent company is bound to be beneficial.”
In other news, Alan Hutton suggests real reason Michael Beale rejected Wolves amid “huge” Rangers claim.