West Brom accounts show MSD loan interest recharged to owners amid PSR case | OneFootball

West Bromwich Albion’s accounts state that interest on MSD loans was recharged to owners Bilkul Football WBA, as the club contests an EFL charge under profit and sustainability rules.

According to ExpressAndStar.com, the parent company, West Bromwich Albion Group, took two loans from Michael Dell’s MSD Holdings Limited, a £20m facility in October 2022 that was extended by £8m in November 2023. The funds provided working capital amid no parachute payments and no investment from Guochuan Lai’s Yunyi Guokai group.

The charge this week is understood to centre on a £5.2m interest payment and where liability sits under financial fair play regulations. It could threaten Albion’s Championship status. The accounts say owner and chairman Shilen Patel injected cash to cover interest, and from Albion’s perspective the cost has been taken on by Bilkul.

The group continues to recognise the loan obligations, but Bilkul has funded the interest and the cost has been recharged to Bilkul. Albion say they believe they have complied with PSR, which permits cumulative losses of up to £41.5m across three seasons.

The accounts, audited by Birmingham firm Azets, were filed by 31 December and reviewed by the Football League for compliance. A hearing before an independent commission is expected in April and must be held within 28 days of the EFL’s club financial reporting unit delivering its report.

Supporters are concerned by the timing of the charge. Albion are two points above the Championship relegation places and visit mid-table Preston on Saturday, the first of four remaining matches. Any appeal could run beyond the final day, when they travel to Sheffield Wednesday.

Source: ExpressAndStar.com