New West Brom takeover may face another delay after collision – 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 taking out additional funding with another loan may mean that any new takeover is pushed back even further.
The Baggies confirmed on 27 November that additional funding had been taken out from MSD Holdings, which is said to provide “increased working capital”.
The finance expert admitted that the news just collides with everything else going on at the club, with any new potential owners now needing to factor in more debt and the collateral on top of that.
“I think it’s another factor there that complicates the issue,” he exclusively told West Brom News.
“It’s not to say that a takeover couldn’t still happen, but it will be a factor in the negotiations as we’re speaking right now because the takeover has not been able to get over the line, it probably means this loan has needed to be taken out, if we take the logic and the assumption that the club has said it is there for football operations.
“That means it is needed for something, which means part of that is because the takeover has not gone through, and then when you run that through, the new ownership group, whoever that may be has to factor in this debt and the repayments and interest, and the collateral that it’s loaded against as part of the negotiations.
“So, it’s bound to put another layer of complexity into an already complex takeover, which may then mean the timeframes get pushed back a little further.
“You can see how it is a factor and it collides with everything that is going on at the club at the minute.”
In other West Brom news, Plumley has also predicted that a change of ownership is needed at The Hawthorns