There could be trouble ahead for West Brom with finances spelling a potential disastrous future for the Championship club next season.
Despite the Baggies owing millions of transfer fees and loans, the threat of going into administration was rule out according to John Percy from The Telegraph.
Percy suggested on December 16th that they owe £10million in loans from Guochuan Lai and as we’ve seen in recent times, concerns are growing about the future of the club under the majority shareholder.
Albion have yet to pay the full transfer fee for Karlan Grant, and Huddersfield is still due £7.5million for the striker.
West Bromwich Albion are moving up the table but, off the field, the club is paralysed. With parachute payments running out next year, and millions owed in loans, trouble could be ahead. This is a club which desperately needs a new owner #wba https://t.co/AhkEfadgs1
— John Percy (@JPercyTelegraph) December 16, 2022
The Telegraph journalist says the lack of investment in the club is a “major concern” ahead of a “crucial” period.
“With £10 million owed in loans, cash running out and no sign of investment, next year is likely to be a crucial period for this historic old club, relegated from the Premier League in 2021,” Percy wrote.
“Supporters are becoming increasingly frustrated, with protests at recent home matches. The threat of administration has been firmly ruled out, yet Lai’s previous dependence on Premier League revenue will no longer be an option.
“Albion still owe Huddersfield Town £7.5 million for the transfer of striker Karlan Grant – which will be paid in instalments over the next three years – and the lack of investment is a major concern.”
Chris Lepkowski of BirminghamLive claimed back in October 2022 that nobody is considering recovery actions at West Brom so rumours about administration aren’t anything to worry about.
However, he it could become a concern if the club goes down, but as of now, things are not all over the place behind the scenes.
Via Twitter, Lepkowski wrote: “Re rumours about wba going into administration: I’d be surprised, though would be a concern if they go down. You’d only normal consider an administrator (if) people are considering recovery action and as far as I’m aware that isn’t the case at wba. Calm down.”
This week, West Brom confirmed the launch of an investigation into the historic loan taken against the club by former owner Jeremy Peace eight years ago.
A statement from the West Midlands outfit on Tuesday read: West Bromwich Albion Football Club can confirm an independent investigation into a 2014 loan to West Bromwich Albion Holdings Limited will commence in the new year.
The club authorised the independent investigation following consultation with Shareholders for Albion – an organisation representing 430 minority shareholders of West Bromwich Albion Group Limited.
The terms of reference document for the investigation, which is expected to conclude within six months, has been signed and a King’s Counsel barrister has been appointed to produce an independent report.
Albion Chief Executive, Ron Gourlay, said: “When I joined the club in February, I was asked by Shareholders for Albion to investigate the 2014 loan, and we have since worked with the group to agree the terms of reference for an independent investigation.
“I am confident the appointed King’s Counsel barrister will compile a thorough and detailed report which, whatever the outcome, will help us to move forwards in the best interests of the club.”
Shareholders for Albion Vice-Chair, Leigh Kent, added: “It is well documented that securing an independent investigation is something which Shareholders for Albion has pursued for a number of years.
“We are grateful to Ron Gourlay for commissioning the investigation and working positively with us to agree reasonable and objective terms of reference.”
The club and Shareholders for Albion will make no further comment on this matter until the investigation has reached a conclusion.
– STATEMENT ENDS –
WestBromNews gave their verdict on the recently Telegraph report, saying: “The decline since Guochuan Lai acquired the club is worrying and if there hadn’t been a change of manager, the Baggies could’ve been plunged into League One. The warning signs are there for all to see, with some huge clubs falling down the pyramid after enjoying a period of time in the top flight.
“Portsmouth and Bolton went down to League Two, and Sheffield Wednesday have fallen into the third tier and still remain there. Ipswich Town also reside in League One after 20-plus years of abject nothingness in the Championship. Sunderland are on the way back, but they suffered from poor ownership and also ended up in the third tier.
“Failure to invest and manage a football club in the right way will only result in decline and that’s sadly what has happened at The Hawthorns. At the moment things are more positive on the pitch, but it’s up to the board to back Corberan in the transfer market, and when things don’t quite go to plan on the pitch.
“The next year could be crucial for the long-term aspirations of the Baggies.”
This is what social media users said on trouble ahead for West Brom with finances spelling a potential disastrous future for them…
@spunge84: Thank you for helping highlight the situation, John! Cracks have been papered over for far too long now. We’re in trouble. #LaiOut
@Sie_the_donkey: Thanks for the cheery Christmas news John 😂😂 #atid
@JamesHornsby1: Please, please if any rich billionaires out there looking to invest. Please do not invest in WBA. Thank you 😁
@MOTForever: When are the FA going to get a grip of owners who run their clubs with the apparent financial expertise of a gnat with a gambling addiction? As ever it’s the fans who suffer in the end.
@martincroom: It’s been coming. The so-called owner borrowing off the club. Disgraceful
@PeterSparrow1: Welcome to our world. I fear for West Brom. They’re a couple of years away from doing a Blues.
@nathancole09: Gourlay there no surprise this is happening and this happened when gourlay was at reading and most reading fans did warn West Brom fans he isn’t great
@BCFCEVERYTHING: I’d love one of them to know what it’s like to be a #BCFC fan. Been screwed over ever since Carson Yueng back in 2009. Annoys me how other clubs think they’ve got it hard, yes they’re in the shit but try having it for 10+ years.
@kmltiling: Cant get a new owner though as our ex chairman sold us down the river. Lai paid far to much now wants more than that and the club isnt worth half what he paid.
This has aged well…🤣🤣🤣🤣 pic.twitter.com/CbFbKuFiQL
— Gary Cos 67 🦁🏴💜💙 (@B31villa) December 16, 2022
Awwwww pic.twitter.com/Wxw2jbSLrm
— Savo’s Bandana (@BandanaSavos) December 16, 2022
— The Thursday Throstle (@TThrostle) December 16, 2022
— Mark Richards (@Markysix) December 16, 2022
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