West Brom loans may catch up on them at The Hawthorns
Dan Plumley has insisted that the loans taken by West Brom could catch up with them if several things fail to materialise at The Hawthorns.
The finance expert pointed out the takeover not going through as the first potential issue, with the other side of that sporting performance and potential promotion to the Premier League.
It comes after The Athletic reported that a takeover needs to happen quickly to avoid the club borrowing yet more cash shortly, as they survive day-to-day.
“You would like to think so,” he exclusively told West Brom News.
“We’ve seen a lot of clubs use these types of loans in football nowadays, it’s not that West Brom are an anomaly in this case, but obviously the more you use those loans, the more you rely on those loans, especially if it is to fund day-to-day operations, the more risk is built in.
“What you don’t want that to do is to catch up with you eventually, and there is every chance that it could do that if a number of things don’t happen.
“One of those is the takeover, front and centre of West Brom at the minute and the previous ownership regime which we think is going to be out of the door, but the other side of that is sporting performance, and some of those problems go away with return to the Premier League given the broadcasting money on offer, but that’s no guarantee.
“There is risk in that strategy, so, you’ve heard me say several times before, that clubs should be looking to more longer-term sustainable models, West Brom are definitely not in that boat, but in the future, they need to get to that position.
“It is tricky because when you’re in that hole, it takes a lot of digging to get out of it and you don’t want to be relying on too many of those types of loans for too long, especially to fund day-to-day operations.”
Takeover at The Hawthorns.
With sports lawyer David Hinchcliffe being spotted at home games since November, his presence was the first sign that things were finally moving along.
US businessman Shilen Patel has since been named the frontrunner to take over the club, with that decision expected within weeks now.
Hopefully, that can happen soon and these loans can become a thing of the past.
In other West Brom news, a journalist reveals how Birmingham fans stoked tensions at the Hawthorns after the Wolves controversy.
For more West Brom news, follow us on Facebook or join our brand new WhatsApp Channel for instant updates to be sent straight to your phone.