West Brom is apparently “looking to recall” a $5 million loan from owners business amid mounting financial difficulties.

West Brom owner loaned £5m to one of his companies in 2021 The Club has now asked the company ‘when and if the money will be returned’.

According to reports, West Bromwich Albion have ‘asked a firm that owes them £5 million when and if the loan would be repaid’ due to the club’s mounting financial issues.

Guochuan Lai, who has owned the Midlands club since 2016, lent the money to Wisdom Smart, a Hong Kong-based business that he also controls, two years ago.

The money was intended to aid Lai’s other businesses in recovering from the pandemic’s effects, but the club has not yet received a refund.

Auditors effectively wrote off the debt early this year, infuriating shareholders who had asked for clarification on the club’s financial statements but received no response.

Lai allegedly “repeated his assurance to the club that the loan and accrued interest will be repaid,” according to a statement from West Brom.

The managing director Mark Miles has reportedly written to the club’s parent organization West Bromwich Albion Group “to find out if the money will be returned,” according to sources in the i.

In response to the fans’ ire over his leadership during the loan’s repayment deadlines in the past, Lai is now attempting to sell the club.

The Championship club hopes for a takeover of around £50 million and has started preliminary talks with companies from the Middle East and the United States.

In order to avoid having to sell off any more talent to ease their financial troubles, they are hoping to sell before the upcoming transfer window.

In the summer, Dara O’Shea left the team for Burnley for less than his release clause allowed.

If they are forced to sell more first-team players for a steep discount, there are worries that their Championship status may be in jeopardy.

The i asserts that West Brom’s pay cost has already decreased by 16% and that the team cannot function at its current level without selling players.

Despite off-field issues this season, the Hawthorns results have stayed largely consistent, as the Baggies are presently 13th in the Championship after two victories, four draws, and two losses.

Be the first to comment

Leave a Reply

Your email address will not be published.