West Brom losses will continue to stack up with reset needed – 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 losses will continue to stack up in the years to come with a fresh reset needed at The Hawthorns.
The finance expert admitted that the ownership situation, on top of relegation to the Championship and no clear path back to the Premier League are problems right now.
It comes after the sale of Matheus Pereira helped the Baggies in their latest accounts that were published at the end of March, with player trading helpful in these situations.
“That’s the danger,” he exclusively told West Brom News.
“Compounded with the ownership situation, compounded with relegation from the Premier League and not getting back there so parachute payments running out, those are the three points that always happen with relegation.
“You’ve then got to look at how you navigate around that so it’s not unusual for clubs to run into loss-making businesses when they drop out of the Premier League, but you have to adjust.
“Sometimes, the only way you can do that is by selling assets and players, and that means a fire sale of players and obviously, that is something that West Brom have not wanted to do, but they’ve had to get rid of players because the financial situation is so dire.
“That is not unusual, but when you fast forward that with everything else and no sign of them being promoted this season, there is half a chance, but unlikely, the losses will stack up for some years and you’ve got to reset the clock.
“It is not easy.”
These accounts are predicted to look quite tame compared to what is possible to come.
With loans being taken out in recent months and parachute payments coming to an end soon, promotion back to the Premier League has never been more important.
Can Carlos Corberán achieve that? It would take a miracle it seems.
In other West Brom news, the Albion would love to re-sign their £6m former player, but would need to secure promotion to the Premier League to do so