West Brom to take out private loan after shareholders informed
Albion have informed minority shareholders they are set to take a loan from a private equity firm to help running costs.
Minority shareholders, who own 12 per cent of the club, have been written to by WBA Group – the club's parent company – about the intention to borrow an unknown sum from MSD Holdings.
The loan, which has previously been reported as in the region of £15million to £25million, is said to be required to assist and fund general workings of the club and working capital purposes of WBA Group and its subsidiaries.
The figure could be to oversee general running costs and the backing of head coach Carlos Corberan in the January transfer window.
The letter has invited minority shareholders have been invited to vote on whether the loan should be taken out – but a resolution will be passed with controlling shareholder Guochuan Lai, and WBA Holdings, responsible for 88 per cent of shares.
American firm MSD Holdings have been a prominent cash lender for English clubs in recent years, including Southampton, Burnley, Derby and Sunderland.
News of the loan has been met with concern among the Albion fanbase with more financial uncertainty circling the club.
It comes just days before the second repayment deadline of the near-£5m loan taken out by owner Lai in March 2021.
Lai has already missed one deadline and the second, which the club have said previously they are confident will be repaid, is set for December 31, with few working days to go until New Year's Eve.
There was also news this week that an historic loan from former chairman Jeremy Peace, worth £3.7m in 2014 but now more than £5m with interest, is being independently investigated with the club's support.
