Kieran Maguire: West Brom have ‘rolled over’ as £5m deadline missed
West Brom have rolled over and effectively allowed owned Guochuan Lai to take advantage of the club.
That is the view of finance guru Kieran Maguire, speaking exclusively to Football Insider about the controversial terms of the £4.95m loan taken from the club purse by Lai.
It was announced on the repayment date last Saturday (31 December) that the owner had failed to reimburse the loan, which came with a meagre interest rate of £50,000.
West Brom are owed a similar amount by former owner Jeremy Peace, who minority shareholder group Shareholders for Albion believe borrowed from the club to up his own stake in it.
The Baggies also recently confirmed the withdrawal of a £20m loan from MSD Holdings, and Football Insider understands that the private lender has insisted on a base rate of interest of 10 per cent.
Maguire claims that the club has essentially been exploited by its owner, leaving them in a precarious position when it comes to repayment.
“You have to wonder who was in charge of the negotiations on behalf of West Brom,” he told Football Insider’s Adam Williams.
“Whoever was negotiating on behalf of Lai appears to have been very persuasive. They have got a very reasonable deal.
“Conversely, whoever has been negotiating on behalf of the football club owned by Lai appears to have effectively rolled over.
“They have allowed the club to give money to a company that has no financial guarantees attached from what we can see.
“Not only that but it is at an interest rate significantly below what we can see elsewhere in the market.“
In other news, Norwich City and West Brom plot moves for Aston Villa sensation Lamare Bogarde.