West Brom confirm another loan as financial accounts finally made public
West Brom have finally made their 2020/21 financial accounts public and it’s been revealed that a previously undisclosed loan was taken out by the club’s holding company.
As confirmed on Companies House, West Bromwich Albion Holdings Limited loaned £2million from Warmfront Holdings Limited, which was secured by 2.35 per cent of its own shares, on 8 September 2021.
Albion confirm the proceeds of that loan, which has a monthly interest rate of 0.3 per cent, were then lent to “a related party” and was due to be repaid on 31 March 2022.
This news comes after West Brom confirmed on 30 June on that chairman and controlling shareholder Guochuan Lai took a £4.95million loan from the Black Country club to prop up one of his other businesses.
Albion confirmed that loan is due to be repaid by the end of 2022 after the initial repayment date in September 2021 was missed.
What was not confirmed on 30 June, which is now clear in the club’s accounts, is that the £4.95million loan could be repaid as a dividend to shareholders.
Complete and utter mess
It’s no wonder Albion did all they could to delay releasing their accounts.
However, chief executive Ron Gourlay told the Albion Assembly in April – as specifically stated on the club’s official website – that “there are no issues to report” in the accounts, which he also said would be published before 30 June.
Express & Star journalist Joseph Masi suggested on 30 June that Gourlay has been misquoted. However, it’s quite a staggering error if the club got that wrong themselves on their own official website.
But we wouldn’t put it past this football club to get something wrong.
Whether the club feel there are no issues in the accounts or not, the fans certainly do.
That £4.95million loan to Wisdom Smart Corporation Limited caused understandable outrage from supporters on social media.
It should cause even more outrage that the club still wasn’t totally transparent about the loan by adding that it could be repaid as a dividend to shareholders.
They also didn’t mention the fact that West Brom borrowed money and then lent that £2million to an unnamed party.
What on earth is going on?
In other West Brom news, a former Albion star is training at the club’s training ground as he looks to find a new club.
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