Despite sitting firmly within the playoff places, West Bromwich Albion's on-pitch success this season has been marred by uncertainty in the boardroom with a dragged-out search for a new owner taking a new twist this week.
The ownership problems at West Brom
Since purchasing a stake in the club from Jeremy Peace in 2016, Guochuan Lai has overseen a managed decline of the West Midlands outfit, going from a comfortable Premier League side to the brink of financial failure.
Problems first emerged when it became apparent that Lai could not afford the £190million price agreed with Peace, sounding alarm bells just six months into the ownership. It later transpired that Lai wanted to take out loans to fund his other business interests, secured against the club's assets. These loans left West Brom in a dangerous financial position and Baggies' fans rightfully angry.
Some six years after, West Brom were relegated to the Championship, they sit in fifth place and are looking in good shape to make a return to the top flight. Despite their league position, many West Brom fans are struggling to celebrate whilst their club still sits in ownership limbo.
With takeover rumors circling for the last few years, it is expected that new owners could be in by the end of the season. Whilst Albion fans wait patiently for news, the saga has taken a surprising turn with a new figure entering the fold.
A "crazy" twist as Aston Villa fan enters fray
Speaking on The Liquidator Podcast (via West Brom News) last week, West Brom fan and former BBC broadcaster Adrian Goldberg revealed a surprising turn that could see Aston Villa fan Alex Hearn potentially becoming a part-owner of the club.
Goldberg reveals an unpaid loan of £2 million from Hearn's company, Warmfront, to Lai's West Bromwich Albion Holdings, with an interest rate of five percent a month. With the deadline for the repayment of the loan set for the 8th February, Hearn can convert the loan into shares if Lai cannot make the payment.
"The rate of interest on that loan is five-per-cent a month – an incredible rate. West Brom Holdings own 88 per cent of West Bromwich Albion, and the suggestion was made that if the loan isn’t repaid, Hearn could convert that loan into shares in West Brom Holdings.
“It opens the possibility that West Brom Holdings is part-owned by a Villa fan. It’s just crazy. Keep an eye on that February 8 deadline – things may start moving, because that’s a publicly notified deadline.”
With a full takeover of the club still ongoing, West Brom News reports that US businessman Shilen Patel is leading the race to purchase the club from Lai and take control at The Hawthorns. Whether the involvement of Hearn has ramifications for the Patel deal is yet to be seen, with any prospective owner potentially having to also negotiate with Hearn if he becomes a shareholder at the club.
If a takeover cannot be agreed, it could throw what has been a successful season for The Baggies so far into crisis, continuing the spiral of the decline that started the minute Lai took over at The Hawthorns.
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