Finance Expert relays new West Brom legal document as MSD loan extended to more properties
Football finance expert Kieran Maguire has relayed information which indicates West Brom have signed a new legal document with MSD Holdings.
Albion confirmed (West Brom website, 28 December) they had taken out a £20million loan from the US private equity firm, which will be used to finance the general business operations at the club.
Maguire has since reacted to the latest agreement and has suggested the news could well be the equity firm covering their backs in case something goes wrong.
“Difficult to work out [if there should be concern],” said Maguire (personal Twitter account, 23 February).
“Could be MSD covering themselves in case something goes wrong and so they have more properties to repossess.”
Pay it off
A club the size of West Brom taking out a large loan is never a good sign, and it begs the question of just how important promotion is. If they can return to the Premier League, that loan will be repaid with relative ease due to the commercial benefits that promotion entails.
However, if they are subject to another season in the Championship, which does seem likely, the Baggies could face some significant financial issues. The club need to be looking to generate revenue through other means, and at present, that’s not happening.
The club don’t have any promising youngsters who will be sold for extortionate fees to a Premier League club. Limited work has been going on overseas to promote the commercial side of the club and they’ve been reluctant to invest in the squad.
One positive is that Carlos Corberan is still at The Hawthorns, but the board cannot rely on the Spaniard to work miracles. These are concerning times once again.
In other West Brom news, Bilic has shared his verdict on Corberan after Watford’s win over the Albion.