Wolves secure fresh loan to aid cash flow
Wolves have taken out a new loan secured on Molineux and future broadcast revenue, documents show.
The club have borrowed money against the asset of their famous stadium and money they will receive in the future from the broadcast companies, with company Alter Domus working as a security agent for the transaction between Wolves and Luxembourg-based company Enormous Victory, documents on Companies House show.
The Express & Star understands this is a new loan to replace an older one that was taken out during the Covid-19 pandemic, with a better rate of interest over a longer period of time.
It is also believed that no additional debt has been taken on by Wolves and that the new loan retains the same repayment schedule.
A Wolves spokesperson said: “Wolves can confirm the successful completion of a £100m refinancing agreement with PGIM, replacing the loan facility raised during the Covid-19 period.
“The deal extends debt maturities to six years at a competitive rate and provides greater financial flexibility for the club moving forward.
“We are pleased to partner with PGIM, which underlines confidence in Wolves’ continued growth both on and off the pitch.”
Loans of this nature are standard practice in modern football, with Wolves and other Premier League clubs doing so to aid cash flow.
In 2019 Wolves took out a £50million loan secured against future television revenue from Australian financial services firm Macquarie Group.
Wolves have also done similar loans secured against future payments due from clubs for players they have sold.
Despite having to make these repayments with interest, Wolves and other clubs tend to do these loans to help with cash flow during a season.
Clubs tend to receive huge amounts of money at the start of a season with TV deal advances and season ticket sales, but normally have little income during a season and to help with paying wages and other company costs, they use specialist firms to secure bank loans.
