All concerned with West Bromwich Albion are eagerly awaiting the outcome of the ongoing, behind the scenes, process that is currently taking place in the hope that a takeover can be achieved sooner rather than later.
Albion have been treading water for such an extensive period under current incumbent Guochuan Lai that, inevitably in elite football, if you don't continue striving to move forwards then you will find yourself going backwards. Since Lai purchased Jeremy Peace's shares in 2016, Albion have suffered two relegations from the Premier League and are currently experiencing their longest spell outside of the top flight in the 21st Century.
The club had to move players on in the summer to help cope without the parachute payments that they've relied upon for so long in the absence of actual investment from Lai, and that process will likely reignite in the January transfer window - especially if no buyer or investor is found and a deal struck by then.
Moreover, the club is still owed money by their own controlling shareholder, money that was due back by New Year's Eve 2022 and is a debt which remains - if now guaranteed by Lai's company West Bromwich Albion Holdings - unpaid. Then you have the £20million loan, borrowed from MSD with interest attached, which the club has been saddled with and will have to be paid back in the coming years having been secured against club assets.
On the pitch Carlos Corberan is keeping Albion as competitive as possible, but away from the field of play the Baggies' current situation is unsustainable - and it's now imperative, more so than ever before, that a new person or company takes over at the helm. Lai, who hasn't been to a game for over 18 months and has never given an interview during his stewardship, will have to accept a serious cut-price offer with Albion's value dramatically reduced.
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Lai, like any other supporter and board member, is believed to be eager to sever ties which is long overdue, in order to preserve the long-term security of the club. Only in September did MD Mark Miles, who has absorbed the roles and responsibilities of the CEO after the departure of Ron Gourlay in the summer, confirm that talks are ongoing although much detail is private and various non-disclosure agreements are in place on both sides.
In the club's listed minutes with the Albion Assembly, it reads: "MM confirmed there were currently NDAs in place which limited what he could say regarding investment/sale. However, he also confirmed he is speaking to a number of parties interested in investing in the club and expects this process to have concluded no later than the end of the season.
"MM stated he is aware of several credible parties and is in regular dialogue with the owner regarding this subject. Any decision relating to the sale of shares will be made by Guochuan Lai, but MM will make recommendations to him. MM added he remains in formal correspondence with WBA Group regarding the outstanding Wisdom Smart loan, however there is no date for repayment at this time and, should this not be repaid by the time of a change of ownership/investment, it would likely be dealt with in that process.
"MM also confirmed that the club will still look to be active in the January transfer window, to help the continuing process of reducing the wage bill. This is likely to be the case irrespective of any investment/sale."
The loans
While the club have four years to repay the MSD loan acquired in December of last year, as well as the attached interest, as mentioned there remains no deadline set for the repayment of the £4.95m loan taken out of the club by Lai in March 2021. It was to aid his faltering business Wisdom Smart, which had suffered because of the pandemic, but was due back long before now as well as the agreed interest.
The third loan on the Albion agenda is the Warmfront Holdings loan. They lent Lai £2m, which he secured against 2.35% of his shares in the event that he wouldn't repay it, they could claim a very small ownership stake in West Bromwich Albion Group.
That £2m loan was agreed with a 5% monthly interest rate from June 2022. At any rate, as it was stated in the Holdings accounts earlier this year, Warmfront 'will not take any action to seek or enforce any or all sums of money until at least 8 February 2024."
It's understood that while the interest rate will continue to pile up in the period of time that it isn't repaid, the 2.35% is only secured against the original £2m sum borrowed by Lai through Holdings. What happens, then if - and, likely, when - that money is returned to Warmfront? Then they'll conceivably be able to claim 2.35% of Holdings - which in turn owns nearly 88% of Group, which covers the football club among other things.
Warmfront, though, would be a minority shareholder, of which the stake in the club would be negligible, but it wouldn't be a particularly ideal scenario for Albion, who wait for the day when Lai is bought out and a new, long overdue, era for the club can commence.
Warmfront, which is a 'domestic energy assessor', is a company based in Brierly Hill and is owned by Alex Hearn, who on the company's website is described as a 'serial entrepreneur, with business interests in professional football, leisure and tourism and overseas property developments'.
There's the Jeremy Peace loan, too, although that is being investigated still so we'll leave that where it is, for now.
Protest pause
Created to help Albion's cause and force Lai's hand, protest group Action For Albion will - for the time being - set aside plans to protest before or during matches as they have done, to great effect, in recent months. Albion fans have marched up the Birmingham Road, unfurled banners outside the Halford's Lane Stand and shone lights regularly to highlight the club's plight and attract the attention of the national press.
Founder and committee member Alistair Jones confirmed recently: "At this minute in time we feel there are very few merits in mass protests. We now have to ask ourselves the question, what are we going to be protesting about? The ‘Lai Out’ period has arguably passed - he wants out and is on the way in the process.
"We think we now have to give the club time. Everything we have ever done has been designed to have a tangible benefit. Doing another protest now, we can’t currently see where that benefit will be. That’s not to say that if and when required we will not review at any stage. We will obviously review the situation on an ongoing basis.
"This doesn’t mean Action for Albion is finished. Far from it. We will continue our work to obtain answers for the whole fan base and will continue dialogue with the club, local elected politicians, persons of influence, and our friends in the local and national media."
