This is what Wolves owners Fosun plan to spend £75m on

Wolves owners Fosun have committed their future to the club and now harbour ambitions of expanding their sports empire.

Fosun are a Chinese investment company with almost £86bn worth of assets under management, according to Forbes.

 

They bought into Wolves in 2016 at the height of China’s football boom, where the state was actively encouraging pumping money into the sport.

They were promoted to the Premier League two years later and then enjoyed two successive 7th-places and a European campaign.

However, two summers of heavy sales had led some to speculate that Fosun were losing interest in the club, especially given that China has reversed its policy on football investment in recent years.

But Wolves chairman Jeff Shi has now said that Fosun remain dedicated to Wolves and are seeking minority investment in the club.

And the latest news from Fosun HQ gives some indication as to how the owners may reinvest that capital.

Wolves and Fosun’s investment plans

It has been known for some time that Wolves are seeking minority investment, but Shi has now confirmed that the club are now in talks with investors.

 

In February, Bloomberg reported that Fosun want to sell a stake worth roughly £75m, which would probably equate to a 15-20 per cent equity share.

It is said that the company want to reinvest that cash into Wolves and also into expanding its esports portfolio, which would likely involve the club in some way.

There have been several updates since then, including Fosun launching the sportswear brand Sudu, who have become Wolves’ kit supplier.

According to Geosport, the Chinese state is now encouraging businesses in the country to invest heavily in sportswear as part of a broader sporting policy overhaul.

That information speaks to why Fosun have taken the unusual move to create a bespoke supplier for Wolves kits.

It also substantiates the company’s claim that they are financially committed to Wolves going forward.

Shi claims Wolves are the fourth-most followed club on social media in China, and that would make them very attractive as a billboard for their sportswear brand.

PSR and Gary O’Neil’s future

Despite starting 2024-25 with just one point from their opening six games, Fosun insist that they have confidence in their football strategy and in Gary O’Neil.

O’Neil, Wolves manager since August last year, is under contract at Molineux until the end of next season.

And while he is no doubt frustrated at Fosun’s refusal to reinvest the funds generated by two of his best players in Max Kilman and Pedro Neto, he is also well aware of the reality of the situation.

 

It has been suggested that PSR – which limits clubs to losing £105m over a rolling three-year period – is a going concern for Wolves, who lost £67m in the last recorded financial year alone.

However, Shi insists that not only have they never breached PSR but that they have never come close to doing so.

 

 

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