Wolves are going to find it difficult to secure a new investor due to the amount of Premier league clubs that are currently for sale.
That is the view of finance expert Stefan Borson, who exclusively told Football Insider investment alone won’t help the West Midlands club improve their financial situation.
Wolves are believed to have been close to the profit and sustainability (PSR) limit over the past couple of seasons, with Premier League clubs only permitted to lose £105million over a rolling three-year period.
Gary O’Neil’s side have been forced to sell several big-name players to ensure they remain within the limit, with the likes of Pedro Neto and Max Kilman moving on over the summer.
In an interview with The Telegraph on 27 September, chairman Jeff Shi revealed the club have spoken with groups about a minority investment and there has been plenty of interest.
Wolves have been owned by Chinese conglomerate Fosun International since 2016.
The club posted a revenue of £169million in their latest 2022/23 accounts, while their wage bill sat at £142million for the same year.
Wolves could struggle to secure new investment
“They just have very limited leeway any which way they go,” Borson told Football Insider.
“Unless somebody can find a way to generate more sponsorship or cut costs, they are boxed in a little bit.
“I don’t see what the other revenue streams are that are going to move the dial materially. Matchday is pretty much fixed. They obviously don’t control the TV deal, we know what that’s going to be.
“The only variable is where they finish in the league. It’s very hard for them to qualify for Europe, so they are very unlikely to get that revenue stream.
“They can have some domestic cup runs, but they are largely neutral from a profitability perspective. They make a little bit if you win it, but generally, they don’t make very much at all.
“That only leaves sponsorship and commercial revenue coming in to increase the overall revenue of the club.
“A new owner isn’t just going to do that immediately. That’s going to take time, so ownership is only one element.
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“If you were to go down the Premier League, parts of at least five clubs are for sale. A lot of clubs are open for investment, so it won’t be easy for Wolves to find a new buyer.
“But as I said, it’s not going to move the dial anyway in isolation.
“They are in a bit of a tricky spot where they are in the league and with their wage bill.”
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