West Bromwich Albion has been struggling ever since the club was sold to a Chinese consortium in August 2016. The controlling shareholder, Guochuan Lai, oversaw a period marked by financial mismanagement and a lack of investment.
Fortunately, his tenure has ended with the acquisition of an 87.8% shareholding by Bilkul Football WBA, owned by Florida-based entrepreneur Shilen Patel and his father, Dr. Kiran Patel.
This change in ownership was necessary due to West Brom’s severe financial problems, including high-interest debt and cash flow concerns. The club’s auditors had previously expressed doubts about its ability to continue operating without significant player sales or new investments.
However, the latest financial reports, bolstered by the new owners, show no such concerns, as a funding agreement has been secured with the EFL until June 2025.
The new owners have already taken steps to stabilize the club, such as repaying a £5 million loan to Wisdom Smart Corporation Ltd., controlled by Lai. However, West Brom’s financial situation remains precarious.
In the 2022/23 season, the club swung from a £5.4 million pre-tax profit to an £11.0 million loss, with revenue dropping by £8.7 million due to reduced parachute payments and decreased profits from player sales.
Despite these financial challenges, West Brom’s wage bill rose by £3.5 million as the club aimed to retain a competitive squad.
This increase was partly due to the addition of new first-team players and the replacement of the previous coaching staff. In the 2022/23 season, West Brom’s £46 million wage bill was the fifth highest in the Championship, trailing only behind clubs with parachute payments.
The end of parachute payments makes West Brom’s financial future even more uncertain, but the new ownership brings a glimmer of hope. The club will need to strike a balance between financial sustainability and maintaining a competitive squad, especially with several players out of contract this summer.
Retaining manager Carlos Corberan, who has made a significant impact since his arrival, will be crucial for the club’s prospects.
Overall, while the financial outlook remains challenging, the change in ownership provides a much-needed opportunity for West Brom to rebuild and aim for promotion, with a renewed sense of unity and commitment from the new owners.