Finance expert details 79.6%-a-year interest as West Brom accounts finally go public
Kieran Maguire has revealed after studying the recent West Brom accounts that the club’s parent company has taken out a £2million loan from Warmfront Holdings.
Sharing a snapshot of the accounts, the football finance expert says that five per cent interest is being charged on that loan amount every month.
This means that over the course of a year, 79.6 per cent interest is levied on the borrowed money.
Via Twitter, Maguire wrote, “West Brom parent company has taken out a £2m loan from Warmfront Holdings, owned by the club owner, on which interest is being charged at 5% per month, which works out at 79.6% per annum.”
Tough times
The longer it takes to repay, the further the Baggies will be riddled with debt and that’s not a good sign for a side aiming to go back into the Premier League.
Things would’ve been easier had they been in the top flight as they would get a decent amount of revenue and it would’ve been smoother behind the scenes.
It’s hard to put a timeline on this and it seems like this situation will continue as long as there isn’t an upheaval in the boardroom.
The chances of that happening are unlikely but stranger things have happened in football so the Baggies fans must remain upbeat.
The performances on the pitch have been decent and the fight for the play-offs is ongoing so there’s a lot to be positive about there.
Hopefully, they can creep into the top six and make that spot their own until the end of the season as this squad does have what it takes to get promoted.
In other West Brom news, a defender may never feature for the club again after what happened and may even leave for free.