Chris Lepkowski can’t believe ‘eye-watering’ West Brom financial reveal
West Brom’s financial situation has been the subject of great intrigue in the last few years.
The Baggies have been under Profit and Sustainability constraints since Bilkul Football took over following the lavish spending of the Guochuan Lai era.
West Brom‘s wage-to-revenue ratio was 184% in the 2023-24 season, which was the highest in the Championship, according to a report from Paul Quinn.
Former head of media at The Hawthorns, Chris Lepkowski, reacted to that reveal on X on 15 February, labelling it as “eye-watering.”
Where did West Brom spend all that money?
The report from Quinn details how the Black Country club reached that point, with their turnover halving to £28.2million after parachute payments from the Premier League stopped.
It also reveals that staff costs reached £52m for that campaign, which contributed to a £37.6m pre-tax loss.
Quinn states that the Baggies owe £39m to MSD Holdings, with a loan that drains over £4m annually from the coffers.
| Financials | Amount |
| Turnover | £28.2m |
| Staff costs | £52m |
| Pre-tax loss | £37.6m |
| Loans | £49m |
| Loans paid off | £5m |
He reveals that Bilkul also injected a £10m interest-free loan, and paid off a previous £5m loan, that Lai had defaulted on, labelling their PSR situation as “highly precarious.”
Why it should not be all doom and gloom for West Brom
It is hard to tell where the club truly are in terms of their PSR situation, given the fact that accounts are released for the previous season, not the current one.
However, a Christmas Eve update from then club president, Andrew Nestor, who has now departed from his role, suggests that Albion are in a much more positive position now.
It revealed that while they would be limited in their scope for the recent winter transfer market, PSR compliance is not expected to be an issue for the 2026/27 season.
He said: “It is expected that the club will be in a strong position in regard to financial regulations and compliance heading into fiscal year 2026/27, allowing the club to build and invest without compliance as a primary concern.”
The sales of key first-team players like Alex Palmer, Torbjorn Heggem and Tom Fellows have been hard for supporters to take, but it looks like it will all be worth it, if Nestor’s December update was correct.
Hopefully, the West Midlands club will be on better footing and be able to invest in the squad without having to worry about what impact it is having on PSR, in the near future and can make its way back to the top-flight.
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