Comment: Fosun making profits but Wolves impact likely to be limited

The financial might of the Chinese conglomerate was already known, as was their stated aim of making a success of things at Molineux and taking the club back to the Premier League.

Yet anyone under the impression today's announcement of increased assets and a £1.2billion profit will lead to a summer of big spending in the transfer market in WV1 will be in for a disappointment.

Quite simply, the rules will not allow it.

The past few years have seen a concerted effort by the authorities to reduce debts in the European game, to the effect a cap has effectively been placed on spending. Gone are the days when a club can merely ride the wealth of its owner to the top of the tree, as happened in the last decade at both Chelsea and Manchester City.

Whether you think that is right or wrong, it is the reality, and one in which Wolves are having to operate.

The club's position with the regard to the regulations commonly known as Financial Fair Play (but which have recently been renamed Profit and Sustainability) were extensively set out by managing director Laurie Dalrymple at last week's meeting of the Wolves Fans' Parliament and documented in these pages yesterday. It is worth another look.

Under the rules, clubs in the Championship are permitted allowable losses of £39million over a rolling three-year period.

Accounts released at the end of February revealed a profit of £5.8million for the 2015/16 season.

Yet when you factor in the estimated £27million outlay in transfer fees which has occurred since, during Fosun's first year at the helm, it becomes easy to understand why Dalyrmple was so eager to stress the importance of generating income through player trading and increased sponsorship.

It also explains why the £13million January signing of Helder Costa is being viewed as a protection of investment as it was a statement of intent.

The penalties for breaching the revised regulations are, for the moment, unknown.

One undoubted impact, however, is to seriously lessen the margin for error in the transfer market.

It is fair look at Wolves' work during last two windows and ponder whether Fosun might have expected more for their initial burst of investment than a relegation battle. The money cannot be respent and a similar outlay this summer will only be possible if the funds were to be recouped through sales.

Wolves are hardly alone in having to cut their cloth accordingly. Only with a promotion to the Premier League, where the restrictions are relaxed, might Fosun get more room to flex their financial muscle.

At a time when the game has never been richer, the need for clear planning and astute minds in the boardroom has never been greater.