According to Adrian Goldberg, West Brom’s newest loan just emphasizes how much of a “dire situation” the club is now in.
Albion stated on November 27 that they had taken out a new loan with the US investment organization, a year after borrowing £20 million.
Some saw this as a positive step, while former BBC presenter Goldberg believes it could signal that talks with interested parties are no closer to completion.
“I think the loan tells us that Albion are in a very dire situation,” Goldberg stated on The Liquidator podcast. ‘Isn’t this a nice thing?’ asked one or two people in the aftermath of the loan.
“I don’t interpret it that way. The truth is that if things go wrong, MSD has the ability to sell our stadium. MSD, I believe, does not want to do that, but they do want their money.
“While this loan will hopefully be picked up by the new owner, I don’t believe it tells us anything about the status of the ownership talks.” It simply states that without the loan, this football club would be unable to pay its bills – that’s how bad things have gotten.
“When you factor in the £20m we borrowed from MSD in the first place, plus this latest loan of, say, £7.5m, plus interest payments, you’re talking about 35, 36, 37 million pounds that Albion will owe.”
“There are reports that Albion could be purchased for around £60 million.” When other factors are considered, the amount owing approaches £50 million.
“I’m struggling to see how the ownership actually takes anything out of the football club in terms of the return for their investment.”
Uncertainty
West Bromwich Albion are doing well on the pitch, even after their loss to Leicester City, but the takeover picture remains quite hazy.
The revelation of a loan seemed to imply that Albion do not expect new owners for the near future, with this cash assisting with the day-to-day running of the club until then.
Once the funds are depleted, the future path for the Baggies becomes uncertain if majority shareholder Guochuan Lai doesn’t inject the anticipated financial support.
The looming debts are likely to be passed on to any future owners of The Hawthorns, potentially leading to a scenario where minimal investment occurs in the team while these substantial payments are managed.
This situation paints a concerning picture for the club’s future. However, the team’s on-field performances are currently serving as a temporary solution, helping to cover up some of the underlying issues.
Staying competitive in the race for promotion could present a positive aspect for potential buyers observing the club. Remaining in contention for promotion might be seen as an attractive prospect for investors considering the purchase of the club.
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