‘Alarm bells ringing’ amid £100m West Brom takeover reveal

“Alarm bells are ringing” at West Brom regarding the management of controversial owner Guochuan Lai.

That is the view of finance guru Kieran Maguire, speaking exclusively to Football Insider about the latest developments behind the scenes at the Hawthorns.

Lai, who bought the Baggies for a reported £175million in 2016, is understood to be seeking external investment in the form of a loan from private equity company MSD Holdings.

MSD Holdings Ltd is Michael Dell’s investment firm, which has already provided loans to other football clubs like Burnley, Derby County, Southampton and Sunderland.

Get the week’s top news delivered directly to your inbox – Sign up for our newsletter

The Chinese billionaire has also caused consternation among supporters through his decision to loan himself £5m with a meagre interest rate.

The Telegraph reported last Friday (16 December) Lai rejected a £100m bid from an American group to buy the club around two years ago.

Lai, who is also said to have rejected a £50m offer from the same firm earlier this season, was believed to value the then-Premier League club at closer to £175m.

Maguire offered his analysis of when, and at what price point, Lai might choose to cash in.

“Lai’s challenge is that having paid a lot of money for the club, he wants to get his investment back,” he told Football Insider’s Adam Williams.

“But when you are buying in the Premier League and selling in the Championship, that becomes a lot more difficult.

“The £100m deal looks reasonable given that Bournemouth, as a Premier League club, for about £120m.

“Lai’s borrowing from the club and the loan that is due for repayment at the end of the month has angered fans.

Source: Football Insider

Can’t stop reading? Read more