West Brom: Jeremy Peace has ‘done well’ financially as Hawthorns takeover news confirmed
Jeremy Peace is the only person who appears to have “done well” out of West Brom financially in recent years, according to Kieran Maguire.
Speaking on The Price of Football podcast on Friday (23 February, 43:54), the football finance expert said the former Baggies owner borrowed money to buy shares in the club before selling it for £200million to Guochuan Lai in 2016.
It comes as Shilen Patel has reached an agreement to acquire Lai’s 87.8 per cent majority shareholding for £20million as well as take on £40million worth of debts that have been racked up at The Hawthorns.
“Guochuan Lai bought West Brom for £200million, it looks as though he’s selling the club for £20million, but also handing over £40million of the debts,” said Maguire. “Effectively you’re picking up a £60million tab. Guochuan Lai is going to have to take a big cut in this, the new owner is going to have to pay in three instalments.
“There’s another loan, which is due to a company called Warmfront Holdings, where they were charging interest at 76 per cent per year, but they’ve agreed to waive the interest. That loan is going to be paid in three instalments as well.
“The only person who appears to have done well out of West Brom in recent years is Jeremy Peace. He borrowed money, which he then used to buy a load of shares in West Brom, which he didn’t own. Then he sold all of the shares he just bought, along with his existing shares to Guochuan Lai for £200million and then disappeared to live in Jersey.”
Jeremy Peace benefitted massively from West Brom
It most definitely seems like Peace saw Lai coming when he agreed to sell him his shares for as much as £200million seven years ago.
The Chinese businessman has suffered a massive loss on his investment, with Patel agreeing to pay a fraction of that price and take on the debts.
There won’t be too many people who feel an ounce of sympathy for him, though, after the way he’s mismanaged the club in recent years.
After months of trying to get a deal over the line, the Baggies fans can now look forward to what should be a brighter future under the American businessman.
It will have also lifted a weight off Carlos Corberan’s shoulders as he can now fully focus on trying to get Albion back up to the Premier League this season.
In other West Brom news, an ex-Baggies favourite has spoken out about his controversial Hawthorns exit.
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