Wolves Rumours 19525

 

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23 Dec 2021 07:44:15
I know we got a good fee for Jota but we could so do with him now!

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23 Dec 2021 10:28:44
Sure could Nigel and we haven't received all of that fee yet which is why Wolves have taken out a £23M loan secured against the balance of what Liverpool still owe us.
I know some will comment that this is quite normal in football because of the sums involved but to me, it appears he was sold for financial not football reasons. Probably to make a dent in our FFP obligations.

23 Dec 2021 12:10:30
Hard to believe we are after a striker and we let the best one go Jota who is scoring for fun, should of gave him an improved contract to keep him at all costs, but no we waste £35 plus million on Fabio Silva also about £16 Million on Cutrone when are these stupid waste of money sighnings going to stop, let's get somebody who can sighn the right players for know not the future.

23 Dec 2021 13:32:26
Agree.
We have never replaced Jota goals and football nouse.
Neto was on the way but got injured.
Traore (sorry Thefutureisoldgold) just has no football brain he could be 20 plus a goal season if he knew how to run into space play quick 1 twos like Jota did.
Cutrone never happened for him.
Silva too young and not matured enough.

23 Dec 2021 13:42:41
Agreed Bigwolf.I know he was a bit injury prone but had a great partnership with Raul.oh well bring on Jan 2022

23 Dec 2021 14:27:20
Slightly altering the thread but picking up on the comment by Longmynd re the £23m. Does anyone understand why we have done it and particularly at this moment in time.
Clearly invoice discounting, factoring or forfaiting - depending on the exact nature of the transaction - is quite common in business but is normally a sign that the company involved in the transaction is struggling.
Macquarrie - who we have done the deal with - are not a charity and so we will be paying fees and interest to get the money in early. Why do we need the money in early and so desperately that we are willing to lose a chunk of it in fees and interest to do so? Note our previous loan from Macquarrie costs us approximately 4.5% pa - compare that to your mortgage rate!
Clearly as yet we only have the accounts to May 2020 and they are heavily Covid impacted but the company on p2 tells us that there will be a £46m profit catch up - income we received in the year to May21 that we normally would have received in the year to May 20 - in 20201. We should therefore expect the year to May 2021 to have been highly profitable? The club told us that underlying profit - ie before covid was £20m in 20202 add on the £46m and surely we should, unless 2021 was somehow dramatically different, expect profits of over £60m!
(Difference will be no European football and much lower league position plus increased wage bill and amortisation for Silva and Semedo but that can't move the dial that much can it?)
The club does not produce a cashflow and so it is hard to tell exactly what is going on but it would appear that we were cash negative over the year to the tune of circa £18m - we owe banks £25m more but owe Fosun circa £7m less.
The key though ironically is the money we owe for players - many have castigated Liverpool for not paying up front for Jota but we do exactly the same and in fact owe other clubs approximately £100m!
Could it be that this money is now owed and we don't have it?
All in all this is a strange and worrying transaction and doing it just before the transfer window couldn't be a worse time. Any one looking to deal with Wolves may well believe that we are finacially strapped and perhaps a forced seller?
Thoughts?

23 Dec 2021 16:50:32
Smacks a bit as desperate? Hope not but can't say I'm surprised!

23 Dec 2021 21:54:01
A lot of supposition there Future, maybe Liverpool are picking up the tab as part of the deal.
Surely Fosun are astute enough as a business not to put us in a precarious financial situation. A least I sincerely hope so.

24 Dec 2021 00:24:08
Norfolk I am not saying I understand what is going on - although I highly doubt Liverpool are putting their hands in their pocket - but it is v strange.
I have spent longer looking at the accounts and on p29 and p30 of the accounts it clearly states that as at May 2020 we owed just over £100m to other clubs a net increase of £39m over the year. This means that in fact we were "cash" negative to the tune of £57m - the £18m plus the £39m in 19/20. Given the huge (net £103m) expenditure on players that year I supposse it is not totally unexpected and possibly explains the change in transfer policy, (it of course does not explain the change in the quality of transfer dealings), to zero net spend
Given the fact that £55m of the money owed to other clubs was due within 12 months I imagine this may well have wiped out our (unknown as the accounts are not available yet) cashflow and possibly even cash reserves for the year to May 2021.
We also don't know what the terms of the transfer dealings in 20/21 were and it may be that although there was a net zero transfer spend in cash terms we were negative?.
Consequently it may be that this new loan is simply due to the fact we are running out of cash.
The club, as long as we stay in the Prem, appears to be relatively profitable, ( v low coast base due to low wage bill and now modest transfer dealings) and therefore is not in any medium term danger, (relegation apart), but it would appear that Fosun have asked us to be self sustaining in cash terms (we actually paid them back some cash in 2020) and in the short term this is v painful due I supposse to having to now actually pay in cash the v high, (relative to income), expenditure previously made on credit which was used to transform us from a mid table championship side to a fringe champions league side, Covid and now sadly the dip in results.
However you look at it though effectively taking out a pay day loan just before the transfer window opens is not a great PR exercise or I fear that helpful when Jeff is negotiating any transfers.
Either they are so arrogant/ignorant that they don't see that or our need for cash was v pressing and the consequences simply had to be borne.
I have said it before Fosun were an amazing owner (bringing us Nuno and some great players via Mendes and substantial, relative to our then status, cash injections) taking us to the very edge of success. It is however a tragedy that for whatever reason (Political pressure in China?) they have cut off financial support and made us stand on our own feet both for us fans - as the team has not maintained the trajectory we were on but has fallen backwards - but also for them as the profitability and value of the club will have plummetted over the past 18 months and sadly despite the magnificant job being done by Lage this trend is likely to continue unless the resources are found to refresh the squad.
Fosun may well have no choice but failing to protect one's investment looks like "Penny wise Pound foolish"!

24 Dec 2021 11:51:51
future. I'm impressed with myself I've actually followed all the the financial stuff, I think. I must admit I find it intriguing, some things I've found odd since the effective sacking of Nuno. Jeff had up until that point always been quite high profile. Since then the very low profile PR wise appointment of Bruno followed by keeping his head down pretty much ever since I find odd and out of character. Maybe I'm reading too much into it but you do wonder what on Earth's going on.
On a positive level so far I have been very impressed with Bruno and the players have certainly responded to his coaching in a positive manner. We have so far with the players at our disposal exceeded my expectations. Very pleased with where we are at the moment though concerned for January and what it's likely to bring or not to bring.
Merry Christmas everybody! Enjoy.

24 Dec 2021 11:56:59
Also he wanted to leave but maybe that’s not important.

26 Dec 2021 08:25:35
Merry Christmas everyone!
I have to say there are some fascinating yet extremely worrying thoughts on this thread. Cash flow looks to be an issue at the moment and this bodes badly for the squad improvements which are needed in January.
Just a couple of thoughts from me as I keenly await the May 2021 financial statements in a few months time.
What was the extent of the US media company’s stake in the business and what has happened to the funds introduced? What is the club doing to renew contracts with the likes of Saiss and Moutinho (let alone Traore)?
Saiss will take some replacing at his salary of £22k per week so why aren’t we tying him down for a few more years? If cash flow is so tight might the club consider cashing in on RAN (limited profit gain due to the sell-on clause but strongly positive to current net assets). Also what’s the point of Trincao when we have MGW out in the Championship? Would we get a chunk of Fabio’s salary paid with a loan deal out in January.
I am uneasy with the management of the club and in spite of the virus if we do have serious cash flow issues right now it is an indictment on the poor-running of the club.
If this is the case it is time to invest in executive talent just as much as prioritising on-field improvements.





 

 

 
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