West Bromwich Albion could find themselves in a dire financial situation in the future should owner Lai Guochuan refuse to lower his asking price of the football club, according to talkSPORT pundit Simon Jordan.
Back in May, The Daily Mail reported that the Chinese investor withdrew £7 million from the Baggies in order to remedy the loss of his other businesses, putting West Brom under a major economic strain. It was further revealed that Lai failed to pay off a £5 million debt which was carried over from the previous ownership when he bought the club.
These are just two of a whole host of financial mishandlings that have taken place at the Hawthorns since Lai’s purchase of the side back in 2016 and now, off the field issues seem to be at boiling point.
Over the past twelve months, numerous fan protests have taken place, spearheaded by fan group Action for Albion and the divide between supporters and the hierarchy has never been wider.
West Brom’s board attempted to relieve the club’s debt by selling several players during the summer transfer window, including Dara O’Shea who parted for Burnley for a reported £7 million.
This week, The Telegraph have revealed that the money accumulated from player sales over the summer was not enough and that the club have ramped up their search for a potential buyer in order to avoid a fire sale of the squad in January.
However, pundit Simon Jordan believes that if Lai Guochuan doesn’t find a buyer who can match his valuation for a takeover, West Brom may find themselves enduring a ‘financial and economic meltdown’.
Speaking on talkSPORT, the ex-Crystal Palace chairman said [quotes via West Brom News]:
“I don’t think he [Lai] wants to be there any more. It becomes about how he exits and what their realistic expectations are. The next stumbling block will be the expectations of a departing owner.
“If he’s sat in situ, and doesn’t want to fund the football club, and doesn’t want it to cost him anything, but wants to achieve an outcome commensurate with his expectations, and if those expectations can’t be met by a potential buyer that doesn’t value it in the same way as the price tag of the seller, then you’re stuck in a situation where you go in a circle.
“If he’s not prepared to fund it and then no one’s prepared to buy it because he doesn’t acquiesce to a price, then you’re going to find yourself in one space,” Jordan continued.
“The football club that starts to move towards an outcome that is very, very challenging, which is financial and economic meltdown and all that goes with that.”
Writer’s View
This is a horrendous situation for West Bromwich Albion fans. The parachute payments from the club’s time in the Premier League have now expired, meaning any offsetting of debts will have to come from player sales should the ownership stick around until January.
The supporters and Action for Albion will be hoping that a buyer can be found, and found quickly, or perhaps Simon Jordan’s prediction will become a reality.
