West Brom administration update shared as John Percy claims ‘cash running out’
The threat of West Brom falling into administration has been firmly ruled out despite the club still owing millions in loans and transfer fees, according to The Telegraph’s John Percy.
Percy has suggested (16 December) that the Baggies are still owed £10million in loans from Guochuan Lai with fears growing of what the future holds under the majority shareholder.
Furthermore, Albion are still yet to pay off the full transfer fee for Karlan Grant, with £7.5million still due to be paid to Huddersfield for the striker.
The Telegraph journalist has suggested the lack of investment in the club is a “major concern” ahead of a “crucial” period for the Baggies.
“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,” wrote Percy.
“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.”
Worrying
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.
In other West Brom news, Carlos Corberan reveals why he cancelled his plans to have a private chat with Tom Rogic