Dr Dan: West Brom keen on any revenue amid lack of Premier League money
We’re delighted to welcome football finance expert Dr Daniel Plumley as our exclusive columnist. Each week he’ll be giving his views on the biggest talking points at West Brom...
West Brom will reportedly look to recoup any possible revenue they can, given their financial situation.
That’s according to Dr Dan Plumley, who claims that relegation has hurt the club financially.
According to The Athletic, an angry section of the Baggies shareholders have hired an international law firm to lead their case over a £3.7 million loan from the club to their former owner.
Gowling WLG, who have been appointed, have written to every West Brom director, signalling that the shareholders intend to continue their fight over the 2014 loan from the club to its holding company.
Ex-majority shareholder Jeremy Peace sold his stake in the club with the loan remaining outstanding.
As the debt is now more than £5million, Dr Dan, the Sheffield Hallam University expert, weighed in to give his two cents.
He told West Brom News: “It’s important from the club’s perspective. They want their money back as the actual interest is more than the loan.
“They want this paid in cash and not via dividends to clear the money.
“It is a sticking point but you can use the cash for the club however you see fit.
“Interestingly they have not posted the 2021 figures, and if you go back to 2020, they made a loss of £24million and wages were higher than turnover.
“The amount of revenue you generate in the Championship is nowhere near the Premier League.
“It’s £5million and that sort of revenue is significant as in the Premier League, they would be getting anything in excess of £120million so it could be seen as a way to offset that.“
Former Baggies CEO Xu Ke had stated that the ownership would repay this loan via a cash injection or dividend before February.
However, he has since been replaced by Ron Gourlay.
In other West Brom news, Chelsea want to sign a Baggies ‘Dynamo’ and are hoping to seal the deal quickly.
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