West Brom requests repayment of their $5 million debt as they worry about player fire sales in January.
The Baggies’ wage bill has been reduced by 16% already and needs to go further as financial worries deepen after a disappointing summer
With players currently needing to be sold to keep the club operating, West Bromwich Albion’s managing director has contacted a company that owes the club £5m in an effort to find out when or if it would be reimbursed.
I recently detailed the Championship team’s severe financial issues, which include an unpaid £5 million debt made to a business called Wisdom Smart Corporation.
Guochuan Lai, the owner of Woest Brm, owns Hong Kong-based Wisdom Smart, and he received the loan about two years ago to help his other pandemic-affected firms.
But it hasn’t been paid back yet. Although a statement on WeBrom’sst website maintained that “Guochuan Lai has repeated his assurance to the club that the loan and accrued interest will be repaid,” it was essentially written off by the club’s auditors in the most recent accounts.
has discoveredthat rMk Mailes, who assumed his position as managing director in July, has written to the club’s parent company, West Bromwich Albion Group, to inquire about the possibility of a refund. WBA Group representatives are attempting to get in touch with Wisdom Smart.
Lai has repeatedly missed his own deadlines for paying back the loan.
After intense pressure from fan organisations, such as the advocacy organisation Action For
has discovered that Mark Miles, who assumed his position as managing director in July, has written to the club’s parent company, West Bromwich Albion Group, to inquire about the possibility of a refund. WBA Group representatives are attempting to get in touch with Wisdom Smart.
Lai has repeatedly missed his own deadlines for paying back the loan.
After intense pressure from fan organisations, such as the advocacy organisation Action For
In an interview with i on the condition of anonymity, a West Bromwich Albion shareholder referred to the club’s recent past as “a story of financial gymnastics, mysterious loans, and unanswered questions.”
Local MP Nicola Richards brought up the subject in Parliament, and it was also brought up in conversations with West Midlands mayor Andy Street by Action For Albion founder Alistair Jones and S4A chairman Leigh Kent.
Due to recent financial issues, the club was forced to sell players as early as the January transfer window in order to stay afloat. During the summer transfer season, West Brom attempted to offload players but discovered that clubs offered pitiful bids for their players, perhaps attempting to take advantage of their financial situation.
West Brom is experiencing difficult financial circumstances as they play in the Championship for the third consecutive year after receiving tens of millions of dollars in parachute payments from the Premier League to support clubs that were demoted from the top division.
The club’s pay cost has dropped by 16%, but more reductions are required, according to what I’ve been informed.
Even so, the club has sold more than 18,000 season tickets for this year — the most in 15 years — and discovered that almost 30% of them are owned by supporters under the age of 20, indicating that they are drawing in younger followers.
They are now ranked 13th in the table after eight Championship games this season, with two victories, two losses, and four ties.
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