West Brom may soon become the latest English soccer club to be purchased by American investors. The Championship side has endured a series of financial difficulties since a group led by Lai Guochuan purchased the team in 2016. Although official figures were not released, the Chinese investor paid around $230 million for the club.
The Baggies were a Premier League club when Lai initially arrived. Nevertheless, West Brom finished bottom of the top flight. It went down to the Championship in his second year at the helm. The team’s performance on the pitch, however, is not the only issue with Lai’s reign in the West Midlands.
Current ownership could take significant loss with the sale of club
Recent reports suggest that Lai may sanction a sale of his team for a cut-rate price. According to Mail Sport, the businessman would even accept a fee of around $74 million for the club. This relatively low price tag has attracted multiple investors. The news outlet suggests that one of these potential buyers is from the United States.
West Brom has invited takeover specialist David Hinchliffe to help with the transaction. The sports lawyer was in the club’s directors’ box for a recent home game against Hull City.
West Brom is fighting to get back into the Premier League, and it currently sits in a playoff position after 15 games
Hinchliffe has previously worked an as advisor for a series of previous takeovers with English clubs. This includes Evangelos Marinakis’ purchase of Nottingham Forest in 2017 and then Andrea Radrizzani’s investment in Leeds United. Radrizzani eventually sold his stake in the Whites to American investors.
Fans unhappy with lack of investment in the transfer market
Due to relegation and other financial factors, West Brom took out a $25 million loan at the end of 2022. The advance is due to be paid over four years. However, Lai has yet to pay back another $12 million loan. With money tight, the club’s owner has not exactly sufficiently spent in the transfer market.
For instance, the Baggies have generated around $20 million in the transfer market since the summer of 2021. The club has only spent more than $1 million on a player just once during this timeframe. West Brom purchased American Daryl Dike for about $9 million in early 2022. The move was, however, founded by selling Matheus Pereira to Al Hilal for $20 million just months prior.
Due to the lack of investment, West Brom fans have organized several protests against the current ownership. This includes multiple demonstrations during the 2022/23 campaign. These protests temporarily stopped. The club surprisingly found itself in a promotion playoff race. Nevertheless, the Baggies ended up finishing ninth on the season.
Despite the lack of funding and protests at The Hawthorns, West Brom is in the middle of a fairly stellar season. The Baggies currently sit fifth in the Championship standings and would take part in the playoffs if the campaign ended today. The club, however, has a tough test against Southampton, the team just ahead of them in the table, at the weekend.
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