Dan Plumley

Fri 30 December 2022 9:10, UK

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 the interest rate will likely be high as West Brom finally agreed to a £20million loan with MSD Holdings this week.

The Finance Expert admitted that it will stand around 8-9% which is another financial factor which is going to affect the Baggies in the short to medium term.

With parachute payments running out while they are still not in the Premier League and ownership issues continuing, it is not looking good at The Hawthorns.

“MSD Holdings are one of the go-to lenders over the last couple of years in terms of they’re in the sports and entertainment business,” he exclusively told West Brom News.

“In terms of interest rates, we’ve seen in the past with MSD at certain clubs, such as Southampton and leading to other clubs, the interest rate will be quite high, you would expect it to be 8-9% which seems to be their market rate at the minute, which is not insignificant in terms of an interest payment. You know what you’re getting into with this kind of borrowing.

“It’s something the club is going to need in the short term, it’s going to be a high-interest rate, so you would have thought it would have been in single millions up to £7-8million.

“Anyway, you can’t blame them for that as that is the market they operate in, they know the clubs are desperate sometimes and need the money, so that is business and it is far from ideal if you’re West Brom at the minute, given parachute payments running out, not back in the Premier League, ownership problems and then you’re having to borrow here at a high rate, just another financial factor to throw into the mix that will affect the club in the short to medium term.”

In other West Brom news, Jake Livermore is facing an uncertain future after the latest Carlos Corberan decision