Wolverhampton Wanderers Faces Uncertain Future Under Fosun's Ownership
Fosun International will mark ten years of ownership of Wolverhampton Wanderers next year, but the club may be facing relegation to the Championship.
Currently sitting at the bottom of the Premier League, Wolves have yet to secure a win in their first nine matches of the season and find themselves six points adrift of safety.
They have not triumphed in the top flight for six months and are set to visit Fulham on Saturday. A failure to earn three crucial points would equal last season's record of ten consecutive games without a win.
Just 39 days after manager Matheus Pereira signed a new three-year contract, fans expressed their frustration during Sunday’s home defeat to Burnley, chanting “sacked in the morning.” This marked the first time supporters turned on Pereira, despite him successfully leading the team to safety last season.
Pereira urged fans to maintain unity during a tense exchange with supporters in the South Bank, but the primary focus of discontent remains on the club's owners, Fosun, and executive chairman Jeff Shi.
Fosun's business ventures encompass health, wealth, and happiness, with Wolves categorized under the 'happiness' segment, alongside their other ventures like pram manufacturer Silver Cross and fashion label Tom Taylor. Most of their assets are located outside of China, including pharmaceutical companies that produce cancer treatments, with Wolves being just one aspect of their broader portfolio.
As the threat of relegation looms, questions arise about the future of the club and Fosun's intentions.
Fosun's Future Plans and Ownership Intentions
Fosun has no intention of relinquishing control, and Wolves remains the only English club owned by a Chinese entity. Even if relegation occurs for the first time since 2018, selling the club is not actively under consideration.
Relegation is believed not to affect Fosun's commitment, and the level of support is expected to remain consistent, as selling a club in the Championship would likely lead to a decrease in value.
Any implication that Fosun is giving up on Wolves would be met with a strong denial. The club is estimated to be valued at around £500 million, while Fosun has reportedly invested between £250 million and £300 million in transfers and operational costs since acquiring the club.
There has been interest from potential investors, including John Textor, who approached Shi a month ago with a proposal for investment. Textor, a former co-owner of Crystal Palace, may return for further discussions, although skepticism remains at Molineux about the likelihood of significant progress. His initial offer was deemed unattractive, and sources indicate that the next move is now up to him.
Wolves have previously sought investment, with Fosun looking to sell a 20% stake worth between £50 million and £100 million in 2019. Since then, they have seen minority stakes come and go, and while they are open to discussions with serious parties, they are not actively marketing the club.
Fan unrest towards the ownership and Shi has been palpable, and those in charge acknowledge the difficulty of changing public opinion once it has soured. Supporters expressed their frustrations during the first half against Burnley, chanting, “You’ve sold the team, now sell the club,” as the match ended with a last-minute defeat.
While Fosun will not bow to fan pressure, they recognize the importance of listening to their supporters. Since acquiring Wolves for £45 million in 2016 with a commitment to invest between £20 million and £30 million in the initial two years, they have sought to restrain spending in recent years.
Despite this, they have not completely halted financial investment, even as Shi emphasized the need for the club to avoid total reliance on Fosun. The strategy has shifted towards more conservative spending, with notable transfers like Matheus Nunes from Sporting for £38 million and Matheus Cunha from Atletico Madrid for a club-record £43 million.
However, a more restrained transfer policy is now in place, with recent acquisitions such as Jorgen Strand Larsen for £23 million and Ladislav Krecji for £26 million marking the highest expenditure this summer.
Wages have also seen a reduction, with former high earners like Nelson Semedo, Raul Jimenez, and Joao Moutinho all earning over £100,000 per week. Wolves faced challenges with players like Pablo Sarabia, who was among their highest earners but struggled to secure a regular spot before departing in June.
Fosun aims to establish a sustainable financial model, acknowledging that while there may be a correlation between wage budgets and league standings, the challenge lies in sourcing better players at more favorable prices. They plan to invest again in January, albeit not on a large scale, viewing the evolution of the squad as part of a new cycle following a period of significant expenditure.
This transition began in June when sporting director Matt Hobbs departed, and Domenico Teti, who collaborated with Pereira at Al-Shabab in Saudi Arabia, took over. Although this change slightly disrupted the summer, Wolves believe they have strengthened their executive leadership.
Pereira's Position Under Scrutiny
There is a strong reluctance to dismiss Pereira from his managerial role. After experiencing four managerial changes in the past four years—five if counting Steve Davis's brief interim tenure—Wolves are seeking stability.
While the team’s struggles cannot persist indefinitely, Pereira still has the backing of the board and players ahead of the match at Craven Cottage. The club acknowledges that they held onto former manager O’Neil for too long, and while they are eager to avoid repeating that mistake, they are not prepared to part ways with Pereira just yet.
The 57-year-old was nominated for the Premier League Manager of the Year award last season, leading the team to six consecutive victories—Wolves' best run in the top flight since 1970. He is expected to be given more time to turn the team's fortunes around.
Pereira expressed frustration regarding late arrivals of players in the transfer window, having lost significant Premier League experience with the departures of Rayan Ait-Nouri, Semedo, and Cunha, who accounted for 15 goals last season.
None of the five new senior signings brought in have top-flight experience, and the club plans to shift its focus towards integrating more homegrown talent moving forward.
Pereira has made efforts to connect with the city and fans, engaging with them after victories last season and coining the phrase, “first the points, then the pints.” However, he acknowledges that only victories will mend the relationship with supporters.
“Of course,” he remarked on Friday regarding missing social outings with fans. “If I’m happy, I like to go to the pub and enjoy a drink. If I’m not happy, I stay home trying to find solutions. Day by day, my job is to find answers to help my team, and the people at the club are doing the same.”
As Wolves navigate this challenging period, the focus remains on uniting the club and striving for better results.