West Brom’s loan repayment could starve the club of transfer funds


West Brom majority shareholder Guochuan Lai could repay the controversial loan debt with the club’s money, reports Steve Madeley of The Athletic.

Albion CEO Xu Ke told shareholders the money could come from a dividend payment the club would first pay to Lai, meaning no new money would be paid to help the club recover. return to the Premier League.

The value of the loan, inherited from former owner Jeremy Peace, and interest is estimated to be around £5m, and the small shareholders who make up the 12% not owned by Lai’s WBA Holdings are ‘angry’ against this prospect.

Controversial transactions

The financial gymnastics that allow money to flow in and out of football clubs often makes no sense to outside observers.

How the former owner was able to receive a loan from the club and then buy a larger share continues to raise important questions.

And those questions will only increase if the current owner does indeed do the same, receiving a payment from the club which he then pays back with that money.

It will enrage fans that it is the club that essentially has to pay its own debt, and especially if it means the team suffers.

Daryl Dike was a £7m arrival at the start of this transfer window and was expected to make a big impact as the team look to push for promotion to the top flight.

But the American was ruled out for eight weeks due to injury in a massive blow to the Baggies (Express and Star), and any funds available to mitigate that blow would be invaluable.

Valerien Ismael’s side are well placed in fifth for a challenge, but form uncertain has also left that position precarious, so a boost from the transfer market to replace Dike’s hoped for could have been crucial.

In other West Brom news, the Baggies could be looking to sign this striker from the Premier League top flight.

West Brom could look to sign Manchester City striker Liam Delap on loan

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