Analysing Wolves' summer challenge and recruitment policy changes

Last summer, increased spending brought hope of a successful season under Bruno Lage, before it quickly fell apart.

As a result, Wolves spent in January to back Julen Lopetegui and correct the mistakes of the previous window – and heading into this summer, the club is likely to feel the hangover of that.

As it stands today, Wolves are expecting a tough summer ahead. Internal talks are currently being had to decide on what budget Lopetegui will be afforded, but the club currently have a black hole to fill to stay in line with Financial Fair Play (FFP).

The solution – in some part – to this FFP conundrum would be investment from owners Fosun, or outside investment. Fosun splashing the cash is more likely than the latter, but neither are guaranteed.

Investment would allow Wolves to offset some of the financial losses, and effectively give them more room for manoeuvre this summer, but it would not suddenly allow Wolves to overspend drastically.

A good example, was when Fosun wrote off £126.5million of debt last year that the club owed to them to make the balance sheets more presentable.

Fosun investment would effectively be moving the problem on a year, unless they wrote off more debt, and that is the balance the club needs to find.

Wolves remain financially healthy and well-run as a club, but they have decisions to make with balancing footballing ambition and financial stability.

The club is determined to be self-sustaining and has largely followed that model, and will need to comply with the FFP rules in front of them. Those talks are being had to discover what Fosun’s plans are for the next transfer window, but until those decisions are made, Wolves are facing a difficult summer where they must first let players go – to fall in line with FFP – before they can consider bringing any players in.

‘Sell-to-buy’ is an overused phrase but, right now, Wolves need money coming in before any other movement can take place.

The balance Wolves must find, is how they cover FFP while also backing a world class manager. Everyone at the club is eager to push them forward, and the situation is far from black and white, but they also need to be realistic.

Wolves have to find a way to do both. Lopetegui will want an answer soon on what his budget looks like and the ball is firmly in Fosun’s court.

Every staff member under Lopetegui has made a major commitment to the club and moved their families to the area – while the head coach has more sway after keeping the club in the Premier League.

That is why it should come as no surprise to see him be more bullish in recent press conferences. He is now putting the owners under some pressure to offer up funds. More than ever, he will have ambitions to move Wolves forward and as as one of the club’s most high profile managers in their history, he does not want to be scrapping at the bottom.

He will want to command a budget to create the right squad, and Fosun may have to take that into account so they do not run the risk of losing Lopetegui.