West Bromwich Albion: Finance guru delivers January spending verdict

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Finance guru Kieran Maguire has given his verdict on the latest news surrounding West Bromwich Albion’s desire to borrow money from a private equity firm. 

The Express and Star reported that the Baggies are looking to borrow money from MSD Holdings, which has lended money to other football clubs in the past.

Speaking to Football Insider, Maguire said the loan could be ‘beneficial’ to their spending in the January transfer window. However, he did say a ‘downside’ would be the interest rates they would be charged should they agree to offer West Brom payments.

He stated: “MSD Holdings are a niche boutique lender.

“They concentrate on the sports and entertainment space.

“In terms of the amount they are likely to borrow, I expect it will be in the single millions given there is limited scope in terms of parachute payments available to West Brom.

“The upside is that it assists with cash flow. It could be beneficial in terms of the January transfer market.

“The downside is that MSD usually charge in the region of 8.5 to 9.5 [per cent] in interest. Therefore, if they borrow £7m or £8m, it is another £500,000 haemorrhaging out of the club at a time when every penny counts.”

TIF Thoughts on Maguire’s comments…

We believe that West Brom need to be careful with the amount of money they intend to borrow.

When Derby borrowed cash from MSD Holdings last year, it left them with significant debt issues, with the Rams owing the company around £15m.

One way that will give the Baggies an enormous financial boost would be securing promotion back to the Premier League. It’s still all to play for in the Championship, as West Brom sit only five points off the play-offs despite being 16th in the league.

Last year’s play-off final victory saw Nottingham Forest gain an income of around £170m, so the financial rewards are certainly a source of motivation for a number of clubs in the division, as not only does it mean you play in England’s top flight, but your club is given a huge financial injection.

The current transfer situation surrounding West Brom won’t excite the fans. The Athletic claims there are ‘clear parameters’ about the type of player they want to bring in, and with this in mind, it could mean there are ‘no incoming signings’ during the January transfer window.

However, should the Baggies borrow from MSD Holdings, it could significantly change the dynamic of their approach to spending next month.

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