£25million West Brom development is a ‘big red flag’ – Kieran Maguire
West Brom potentially accepting a £25million loan from MSD Holdings – the company that also loaned money to Derby County, is a huge concern, according to finance expert Kieran Maguire.
West Brom fans voiced their opinion towards club owner Guochuan Lai on Tuesday night with a mass protest during the Blackpool clash.
Lai has already borrowed money from the club that is due to be repaid at the end of the year, and Maguire has now revealed on his latest The Price Of Football Podcast, that an extra £25million loan may be accepted from MSD Holdings.
“West Brom are approaching MSD Holdings, who were involved with Derby County,” said Maguire. “They were owed £22million and lent a further £3million which was secured through the sale of Pride Park.
“MSD Holdings are potentially going to lend up to £25million to West Bromwich Albion. What’s that going to be secured on? Well, West Brom’s parachute payments end on the 30 June so I can’t see them being secured on that.
“So therefore the only other asset that remains is the club stadium. It’s effectively that West Brom are taking out a mortgage if this deal goes through.
“Given that the club has had 18 months of parachute payments, why is it now going in hock to a lender? Big red flag.”
A huge worry
West Brom fans are right to be worried about the noises coming out of the club at the moment. Tuesday was not the first time that the fans spoke out against Lai and it definitely won’t be the last.
The Shareholders 4 Albion have already moved to protect The Hawthorns from potentially being sold by completing an application for it to be considered an asset of community value. [Express & Star].
Hopefully, it provides a stumbling block in Lai’s plans and protects the club from following a similar route to that of Bury and Derby County.
But that Lai is considering taking out another £25million loan suggests the club may be in serious financial peril. Action needs to be taken to protect West Brom from administration, and Lai’s ownership of the club needs to be thoroughly assessed.
Plus, with on-pitch issues and a serious threat of relegation, fans will be even more worried about the club’s well-being if the league position doesn’t quickly improve.
In other West Brom news, West Brom are looking to avoid financial catastrophe, says finance expert