West Brom administration threat before Shilen Patel shared with Derby and Reading comparison
West Brom were facing the threat of administration and could have suffered a similar fate to both Derby County and Reading before Shilen Patel’s takeover, according to John Percy.
The Telegraph journalist reported on Friday (1 March) that the Baggies’ bleak financial outlook under Guochuan Lai had meant that administration had become a genuine possibility at The Hawthorns in the near future.
On top of that, fire sales and staff cuts were all possible as Albion took loans worth £28million from MSD Holdings and had Patel not completed his takeover, the Baggies could have been hit by points deduction and relegated from the Champions, like Derby.
Writing for The Telegraph, Percy said: “Under their highly regarded head coach Carlos Corberan, West Brom can at last plan for a future without an existential threat hanging over them. Make no mistake, this club could easily have become the next Reading or Derby County had Patel not come to the rescue.
“Losing over £2 million a month is sadly pretty standard for most Championship clubs, but West Brom’s financial outlook was bleak, to say the least. Administration was a genuine possibility down the line, with Lai’s lack of engagement a constant source of exasperation for club staff.
“Administration, fire sales of players and staff cuts were all possible. The loans taken from American investment company MSD, totalling £28 million, were flashing red lights.”
Will West Brom be promoted after Shilen Patel’s takeover at The Hawthorns?
West Brom supporters have been incredibly vocal in their unhappiness with Lai and his running of the club throughout his tenure and Percy’s report suggests that fans were right to voice their concerns with their former chief.
Corberan has managed to pull off a bit of a miracle at The Hawthorns by making this Baggies side competitive at the top end of the Championship table, but it would not have been sustainable under Lai’s watch.
Now that Patel has been confirmed as the Baggies’ new chairman, with documents submitted to Companies House and official statements emerging from the club, Albion can look forward to a brighter future.
Hopefully, fears of fire sales and administration can now be brushed aside and the Baggies can look up the Championship table and push to make a return to the Premier League.
In other West Brom news, Corberan has shared an update on when Yann M’Vila may finally make his Albion debut
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