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Kieran Maguire suggests West Brom 'fire sale' amid Guochuan Lai controversy
There will likely be a ‘fire sale’ at West Brom this summer after the club’s parachute payments expire.
That is the opinion of finance expert Kieran Maguire, who exclusively told Football Insider that the Baggies are set to face a ‘very challenging’ 2023/24 season.
West Brom narrowly missed out on the Championship play-offs this season after a final day 3-2 loss to Swansea City.
The Midlands side will be without parachute payments next season, and financial troubles have continued behind the scenes with club owner Guochuan Lai failing to repay a £5million loan to the club on the third attempt at the start of the year.
West Brom’s minority shareholder group, Shareholders 4 Albion, have since submitted a list of 38 questions for director Xu Ke to answer about the club’s ownership.
Maguire believes West Brom’s failure to reach the Premier League this season has left the club vulnerable to financial issues with Lai continuing to take money out of the club.
“The ending of parachute payments for West Brom will produce additional challenges if the club fails to make progress,” Maguire told Football Insider.
“West Brom faces a very challenging 2023/24 season after failing to reach the Premier League.
“The promises of Guochuan Lai to repay the money to the club in early 2023 do appear to be without foundation given that we are now in May.
“In terms of cash flow, the loans from MSD Holdings come at a very high-interest rate.
“The club also appears to have borrowed money from elsewhere so that is more cash flow leaving the club.
“I think a fire sale is expected in the summer unless the club is able to reclaim some of the money that has been borrowed by Lai.
“You have to question the integrity of those making the decision to lend such money.“
In other news, West Brom to bank £13m windfall as landmark new deal agreed