Wolves for the drop?

[dylanisabaddog 4,971]

https://www.bbc.com/sport/football/66437744

Not the best time to be changing your manager

[duke63 545]

Wolves are insolvent to the tune of £99 million and owe their parent Chinese owners £170 million. 

[cambridgeshire canary 6,782]

19 minutes ago, duke63 said:

Wolves are insolvent to the tune of £99 million and owe their parent Chinese owners £170 million. 

But but they have STONKING RICH CHINESE OWNERS

 

How could that ever go wrong?

[Yobocop 1,105]

2 minutes ago, cambridgeshire canary said:

But but they have STONKING RICH CHINESE OWNERS

 

How could that ever go wrong?

I guess that’s the point he’s making right? 

[Nuff Said 5,167]

It will be funny if they stay up with O’Neil and it’s Bournemouth who go down.

[KiwiScot 1,460]

It comes to us all. Wolves have had a good run.

[cambridgeshire canary 6,782]

1 hour ago, KiwiScot said:

It comes to us all. Wolves have had a good run.

Once the money starts running out, the debts pile up, the owners want away, half the squad leaves and FFP starts barking at you.. 

But yes, Wolves have had a real good time. But as we all know with wealthy owners its always a gamble and it seems the party is almost over for Wolves. If they do go down you're right that I don't think their fans will complain too much about their past few seasons..

Edited August 9, 2023 by cambridgeshire canary

[Nuff Said 5,167]

17 minutes ago, cambridgeshire canary said:

Once the money starts running out, the debts pile up, the owners want away, half the squad leaves and FPP starts barking at you.. 

But yes, Wolves have had a real good time. But as we all know with wealthy owners its always a gamble and it seems the party is almost over for Wolves. If they do go down you're right that I don't think their fans will complain too much about their past few seasons..

FPP:

Fédération des Professionnels de la Piscine 

Fortran Pre-Processor

First Past the Post

First Person Plural

Floating Point Processor

Family Planning Perspectives

Foundation for Pavement Preservation

Fresh Frozen Plasma

???

Yours pedantically 

 

[Branston Pickle 3,680]

1 hour ago, Nuff Said said:

It will be funny if they stay up with O’Neil and it’s Bournemouth who go down.

Definitely this - the way they dropped O’Neil was very harsh.

Edited August 9, 2023 by Branston Pickle

[Michael Starr 520]

4 hours ago, cambridgeshire canary said:

Once the money starts running out, the debts pile up, the owners want away, half the squad leaves and FFP starts barking at you.. 

But yes, Wolves have had a real good time. But as we all know with wealthy owners its always a gamble and it seems the party is almost over for Wolves. If they do go down you're right that I don't think their fans will complain too much about their past few seasons..

at least they can enjoy the silverwa... oh.

[It's Character Forming 1,164]

If a club owes money to its owners, does it actually matter if they are not asking for it to be paid back ?

[Corbs1 90]

Wolves and West Brom both Chinese owners and in trouble. No doubt on Myfootball writer the articles will nevertheless flow comparing our custodians to Owen Oyston, but I’ve taken Gowers advice and tend to avoid the bores. 

[keelansgrandad 6,679]

Wolves one week, someone else another. It is never going to stop while the players rule the roost. Another poor season and watch us struggle financially. No more parachute payments anymore.

[aBee 151]

6 hours ago, It's Character Forming said:

If a club owes money to its owners, does it actually matter if they are not asking for it to be paid back ?

Yes, it still counts as debt for FFP and can’t be written off/converted to equity to bring them back within FFP bounds. Wolves are right at their limit this season because they spent in January what they had budgeted to spend this summer (according to an open letter from their CEO). So they won’t go bust while their owners decide not to seek repayment but they can’t spend more without more sales. 
 

Funnily the rules are different in L1 and that allows for Wigan etc to keep spending big for promotion and then having no way of affording FFP compliant spending when they go up. QPR seem to be pursuing a strategy of relegation to enable their owners to clear things up. 

[RobJames 884]

6 hours ago, It's Character Forming said:

If a club owes money to its owners, does it actually matter if they are not asking for it to be paid back ?

That is not really relevant. It is this that is of real concern  "

"....but stressed that Wolves must be cautious with their summer spending in order to meet the Premier League's financial fair play rules.

According to FFP rules, the club must make a profit on player trading this summer to avoid exceeding the accumulated £105m loss over a three-year period, the maximum permitted."

Spending beyond your income has a limit. Wolves have reached that level. I expect O'Neill jumped at a chance wiser heads turned down. He does look the cheap option.

[Ulfotto 641]

I heard a Wolves podcaster on BBC news say the Chinese owners have invested a lot of money in Wolves and now now looking for a return on that investment.

My heart bleeds clearly if anyone thinks they are getting money back from an investment in football they are clearly stupid or have been spun lie after lie it is the ultimate money pit.

[duke63 545]

7 hours ago, It's Character Forming said:

If a club owes money to its owners, does it actually matter if they are not asking for it to be paid back ?

Yes as it’s still a debt  

What if the owners company gets in financial trouble and needs the money back asap. What if the Chinese government makes restrictions on foreign debt?

A few have commented that Wolves fans will think they have had a good time but despite all that spending they have won nothing. They had one trip to Wembley where they lost the FA cup semi final in the very last minute  

At some point those funding the debt must wonder what they have achieved when they are still owed £170 million but the silverware cupboard is bare and they have a team now favourites to be relegated  

 

[dylanisabaddog 4,971]

16 hours ago, It's Character Forming said:

If a club owes money to its owners, does it actually matter if they are not asking for it to be paid back ?

Yes it does. It is a debt sitting on the balance sheet so transactions involving that debt will have an accountancy impact and possibly an FFP impact. I'm afraid there are simply too many variables to go through them all but the main and obvious problem is that any buyer of the club would be expected to stump up £170m just to open negotiations. 

Wolves fans may have enjoyed their period in the limelight but they now need the Chinese or Saudis to dig them out of the dirt. I may be wrong but I think it's more likely they'll end up in League 1.

[Trevor Hockey's Beard 527]

Could the same happen to Forest - what with their huge spending on getting promoted, or does that expenditure not count from a Family Planning Perspective, or whatever it is?

[It's Character Forming 1,164]

2 hours ago, dylanisabaddog said:

Yes it does. It is a debt sitting on the balance sheet so transactions involving that debt will have an accountancy impact and possibly an FFP impact. I'm afraid there are simply too many variables to go through them all but the main and obvious problem is that any buyer of the club would be expected to stump up £170m just to open negotiations. 

Wolves fans may have enjoyed their period in the limelight but they now need the Chinese or Saudis to dig them out of the dirt. I may be wrong but I think it's more likely they'll end up in League 1.

I thought FFP was about profits/losses rather than what's on the balance sheet, so the debt would impact that if they are charging interest and only the amount of the interest, not the debt itself.

 

In terms of a possible sale, ok it shows they'll want that amount if they want to sell, but as always, it's about supply and demand and if there are no buyers at that price they have a choice of not selling, or taking a write down on the debt in order to sell.

 

I'd be interested to know if there are any other impacts people can explain.