EXCLUSIVE: Wolves take out £50m loan secured against TV revenue
Wolves have taken out a £50 million loan secured against future television revenue.
The club has secured the loan with Australian financial services giant Macquarie Group to fund operational costs.
Documents filed at Companies House show the club’s holding company Wolverhampton Wanderers Football Club (1986) Limited secured the loan last month.
The loan has been approved on the back of the impending multi-million pounds due to come into Molineux from the Premier League’s central fund.
It is understood the loan will aid costs involved in running the club while Wolves await the instalments of their Premier League television payments.
The club is anticipated to receive £130m from the Premier League over the course of the 2019-20 season due to their seventh-placed finish last term.
But the cash is paid in instalments throughout the course of the year – hence Wolves’ decision to take out the loan to help cover wages and transfer instalments.
The loan is anticipated to be repaid quickly, with the club paying a four per cent interest rate.
Wolves are not the only club to access television cash early.
Everton, West Ham and Watford are also understood to have secured loans over the summer in similar moves.
Leicester City and Bournemouth have also used a loan method with the Macquarie group to secure loans for the development of the King Power Stadium and Leicester’s training ground with the Cherries gaining a cash advance ahead of awaited payments for Villa’s Tyrone Mings.
Meanwhile, The Express & Star understands that Fosun have no desire to sell its shares in Wolves but is open to investment.
The Chinese conglomerate bought Wolves for £35m in 2016 but reports Fosun are willing to sell 20 per cent of the club are not accurate.
The investment company owns 100 per cent of Wolves’ shares and though they would not sell their stake, they could allow extra shares to be created which could be sold.
The money raised from that would go into Wolves with the intention of aiding the growth of the club in new markets around the world.