Wolves secure £99m government loan
Wolves have secured a £99million government loan to aid company cash flow.
The club has become the first in the UK to secure funding from government agency UK Export Finance, that aims to help British export companies with a £6.5billion taxpayer-backed fund.
Wolves have qualified for the loan due to the Premier League’s strong standing overseas, with foreign broadcast money making up at least half of all TV revenue. That means a certain percentage of the club’s ‘product’ is exported overseas and they qualified for the scheme.
As a result, Wolves have received a £99million loan that the club will use for operational costs and to aid cash flow. The loan was taken out almost a year ago, but details have only recently been announced by the government.
It is common practice among clubs to secure loans for cash flow purposes and Wolves have often taken loans out with Australian financial services giant Macquarie Group, secured against future TV revenue or money due from player sales.
Previously, Wolves have taken loans out with Macquarie secured against instalments due from Liverpool and Spurs for the sales of Diogo Jota and Matt Doherty.
This government loan is instead guaranteed against owners Fosun and has much more favourable terms with far less interest than previous loans taken out with Macquarie.
The loan has proved to be a shrewd move from Wolves as the first club to secure funds from the scheme.
