West Brom ‘looking to recall £5m loan’ from owner Guochuan Lai’s company amid growing financial problems, with the club reportedly needing to ‘sell players in order to stay operational’
- West Brom owner Guochuan Lai loaned £5m to one of his companies in 2021
- The Club has now asked the company ‘when and if the money will be returned’
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West Bromwich Albion have ‘asked a company that owes them £5 million when and if the loan will be repaid’ amid growing financial problems at the club, it has been reported.
Guochuan Lai, owner of the Midlands club since 2016, loaned the money two years ago to Wisdom Smart, a Hong Kong based company which he also owns.
It aimed to help Lai’s other businesses recover after fallout from the pandemic, but the club is yet to see the money returned.
The loan was effectively written off by auditors earlier this year, which sparked fury from shareholders whose request for clarity over the club’s accounts went unanswered.
However, a statement from West Brom claimed Lai had ‘repeated his assurance to the club that the loan and accrued interest will be repaid.’
West Brom have reportedly enquired about the status of a £5 million loan made to owner Guochuan Lai’s company Wisdom Smart
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According to reports in the i, managing director Mark Miles has now written to the club’s parent company West Bromwich Albion Group ‘to find out if the money will be returned.’
Lai has missed deadlines to repay the loan in the past, and is now looking to sell the club amid anger at his tenure from fans.
The Championship club has held exploratory discussions with parties from the Middle East and the United States and are hoping for a takeover worth around £50million.
They hope to sell before the next transfer window in order to avoid having to sell off even more talent to soothe their financial woes.
Dara O’Shea departed the side for Burnley in the summer for a fee below his release clause.
There are concerns their Championship status could come under threat should they have to sell off more first-teamers for a slashed price.
The i claim West Brom’s wage bill is already down by 16 per cent, and that the club cannot continue to operate in its current state without selling players.
Results have remained relatively steady at the Hawthorns despite off-field concerns this season, with the Baggies currently 13th in the Championship after two wins, four draws and two losses.
The club has been ravaged by financial difficulties and reports suggest they ‘may need to sell players to stay operational’
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