Credit: Imago

Dan Plumley

Wed 19 March 2025 18:00, UK

West Brom are wary of breaching the profit and sustainability rules after posting losses of almost £34million in their latest financial accounts.

Albion released their accounts from July 2023 to June 2024 last month, revealing that they incurred losses of £33.9m during that period.

With that figure being three times more than the losses they posted in the previous year, there are understandably some concerns regarding the club’s finances among the West Brom faithful.

Having made a profit of just over £5m in 2022, the Midlands outfit’s total loss across the last three years is £39.5m, which is above the well-known PSR threshold of £39m.

West Brom compliant with PSR despite admitting risk

That is why West Brom made it clear in their latest accounts that PSR remains a “risk” for them although they are compliant with them, according to Dan Plumley.

The football finance expert is of the view that the Championship club need not be significantly worried about breaching PSR yet as their last year’s losses also relate to expenses that are exempt from those regulations, with the club investing in the training ground, academy and the women’s team.

He also pointed out that the Championship increased the PSR threshold across a three-year period from £39.5m to £41.5m, meaning Albion comply with them even if their total loss is taken into consideration.

“It’s a big number and the club say in their accounts as well that PSR is a risk, but they say they are compliant“, Plumley exclusively told West Brom News.

“If you look at this set of accounts and then that kind of bigger picture, they made a profit in 2022, just over £5m, a loss of £11m in 2023, and then the £33.9m loss. So that gets you to a headline number of a loss of £39.5m, but that doesn’t take into account any of the claw backs and the things that are exempt from PSR.

“The Championship also agreed to extend the £39m figure slightly over the last couple of years, it’s just ticked up to £41.5m now based on inflation and cost of living, etc. That’s still on a three-year period, so there’s a little bit of scope in the regs.

“West Brom, on the headline numbers, you look at that and it will run it close, but there is all the other stuff that we’re not counting for there and again, a couple of other wider contexts to consider. One is about the regulatory landscape as well; the EFL will stick with PSR for now, but if the Premier League moves, we expect the EFL to move to some sort of squad cost ratio in the future.

“And the wider finances of West Brom as well, because it was always likely that the profit or loss was going be heavily impacted by the reduction in parachute payments, and we’re starting to see that now in those financial accounts.

Shilen Patel steady ship at The Hawthorns

“It’s a heavy loss, but in the context of where the club have been and where they are going, as long as they’re compliant with PSR, which they’re saying they are, then you can look at that in terms of the bigger picture of the last three years and also pushing on to the next three to five, and maybe even promotion back to the Premier League as well would obviously make all those concerns pretty much go away overnight.”

Shilen Patel has done a good job since putting an end to Guochuan Lai’s nightmarish reign over West Brom in February last year.

Under Bilkul Football’s ownership, Patel has worked towards repaying the debts the Baggies took under Lai and even Jeremy Peace before that.

Despite the heavy losses in the latest accounts, he has ensured that the club continue to comply with PSR regulations.

And on the pitch, West Brom remain in contention for a playoff spot, sitting sixth in the Championship with eight games left.