Wolves cash in on Matt Doherty funds
Wolves have received their second cash injection in two months after taking a loan secured against transfer funds due from the sale of Matt Doherty to Tottenham.
The defender left Wolves in August 2020 for Spurs in a £15million deal.
Documents filed at Companies House show Wolves have taken a loan with Australian financial services giant Macquarie Group to receive just over £6.6million now.
The cash is secured against two instalments due from Spurs in September and another 12 months later.
Wolves made a similar move in December when they took an advance of £23million with Macquarie for the final two instalments that were due from the sale of Diogo Jota to Liverpool.
It is common practice in football, and wider business, for clubs and companies to take out such loans to aid cashflow through the season and this latest loan is Wolves’ second in as many months.
But the move is not considered to be a dangerous one as Fosun look to continue their self-sustaining model.
“This is the corporate equivalent of a posh payday loan,” football finance expert Kieran Maguire said.
“It’s quite common and occurs in many lines of business.
“The main reason why Wolves will have done this is to improve cashflow.
“They know they are due to receive money from Spurs in September 2022 and 2023, but they’d rather have the cash now.
“It could be that they’ve got bills to pay, some projects they want to invest in and it’s reasonably fair to say that Fosun want Wolves to be able to stand alone and not be constantly reliant on the owners to pump in money.
“It’s not a huge cause for concern but it does indicate that cashflow in football is relatively tight because the sums involved, by football standards, are not large. Two payments of just over £3million in the context of the transfer market are relatively low amounts.
“Wolves are carefully monitoring cash at present. It’s not great news, but it’s not bad news either.”
Wolves have worked with Macquarie on several occasions and took out a £50million loan in 2019 secured against future television revenue.
