West Brom take out £20m loan for club running costs
West Brom have secured a £20million loan to finance the running of the football club - which will be secured against the club's assets including The Hawthorns and the training ground.
The loan, which has been arranged with MSD UK Holdings Limited, is over four years.
It is understood that although it is secured against the club's assets, the club would not consider any sale of the ground or training complex unless it was the ultimate last resort. Instead, player sales would be made first.
It is also understood that the loan is completely separate from the £5m owed to the club by owner Guochuan Lai, which is due to be repaid by New Year's Eve.
In a statement this afternoon, the club said: "The four-year loan, secured against all Group assets, will be used to finance the general business operations of the football club.
"The club has corresponded with all group shareholders in connection with the written shareholder resolution required to amend Group’s articles of association in relation to the loan."
Group director, Xu Ke, said: “Group has secured a loan from MSD UK Holdings which will be used by the football club to support the funding of its general business operations.
“For the avoidance of doubt, the loan will only be spent on the purposes of the football club.”
Minority shareholders were informed of the loan last week and given the chance to vote on the proposal – although they were warned that with Lai controlling 88 per cent of shares, it would go ahead anyway.
The club last week launched a probe into a £3.7m loan paid to ex-chairman Jeremy Peace in 2014.
