Football finance expert Kieran Maguire has delivered encouraging news on West Brom ahead of a likely drop back down to the Championship.
With just seven games left in their bid for Premier League survival, Sam Allardyce’s side are nine points behind Burnley who occupy the safety slot of 17th.
Despite a recent resurgence that has seen them pick up successive victories versus Chelsea (5-2) and Southampton (3-0), time is ticking and relegation back to the second-tier appears an inevitability.
With demotion from the riches of the Premier League comes the financial ramifications that can often cripple clubs but speaking on The Liquidator podcast [19/04/21] financial expert Maguire cast an encouraging outlook on Albion’s monetary situation.
“There are some positives,” he said.
“The club doesn’t really have much debt, it did have some cash in the bank.
“Its finances, are they great? No. Would they benefit from another year in the Premier League and another two or three years of parachute payments? Of course they will.
“But overall it shows the sheer lunacy of the finances in the Championship where the clubs between them will be losing over £600million this year.”
Glimmer of hope at the end of a dark tunnel?
Is this…something to cheer? Should we be on our hands and knees to Guochuan Lai now?
Well, no. Lai has still done next to nothing for the club in terms of investment and keeping a strong hold of our finances.
But it sounds as if we’re a better off than a lot of clubs, particularly in the Championship.
That can probably be explained by the fact we’ve been relegated from the Premier League and promoted back into it within a few seasons.
The parachute payments that Maguire references are of huge importance to relegated clubs and it’s probably saved us from financial ruin.
Being in the Premier League this season will also have been a saving grace with the more exposure and better sources of revenue it receives, particularly from broadcasting deals.
We’re not dancing from tabletops but Maguire’s verdict gives us a bit of hope that Lai won’t be leaving us in a completely perilous position if and when he goes, and the club should be an attractive proposition to prospective owners with little debt.
In other West Brom news, Albion loanee suffers potentially season-ending injury.