West Brom to pay off transfer debts if new loan taken – Finance Expert
We’re delighted to welcome football finance expert Dr Daniel Plumley as our exclusive West Brom columnist. Each week he’ll be giving his views on the biggest talking points at The Hawthorns...
Dan Plumley has insisted that West Brom will likely use a potential loan from MSD Holdings to clear any transfer instalment debt at The Hawthorns.
The Finance Expert admitted that MSD usually includes high-interest rates and this will be no different, although there are pros and cons to taking out the loan.
It comes after The Telegraph reported that loans need to be rapid and the Baggies still owe £7.5million to Huddersfield for Karlan Grant over the next three years.
“I think looking at what you’ve got in the mix there, the more critical thing is the transfer instalments as that is obviously to another club,” he exclusively told West Brom News.
“The internal loan situation is less of a situation as you should be able to negotiate that situation with your owner, I know that has not been the easiest thing for West Brom.
“If you’re looking at someone like MSD Holdings, a quick way to generate cash, it means you need to pay something off and that is probably linked to the instalment so if they are going down that road, you’d expect it to be in or around the value of what they owe in transfer instalments to get that paid.
“The pros of that are that it clears the debt in terms of transfer instalments, but the cons of that are you’ve just took on another debt elsewhere internally that you then owe a lending partner which is probably going to charge interest at a hefty rate, which we’ve certainly seen from MSD, that’s been there play, interest rates of 9/10% of some of the clubs they’ve lent too.
“That would be my guess, that they’re going to use to shift the transfer instalments debt.”
In other West Brom news, Andy Carroll has opened up on his immediate regret after joining the Baggies last season