Kieran Maguire issues ‘misleading’ claim after £53m West Brom announcement
West Brom have seemingly made a profit for the 2020-21 campaign – but the figures could be “misleading”.
That is the view of finance guru Kieran Maguire, speaking exclusively to Football Insider about the Baggies’ accounts for the year ending 31 May 2021.
Albion, who published a redacted snapshot of the financial data last Thursday (30 June), failed to extend their stay in the Premier League beyond one season in 2020-21.
Their turnover increased for the season by £53.1million to £106.9m, allowing them to post a small profit of £100,000 for the financial year.
They were one of only a handful of top-flight sides to stay out of the red during a season in which stadiums were closed to fans because of the pandemic
But they have not yet released their full accounts to Companies House.
And Maguire suggests that the Hawthorns side may have only made a profit according to one of multiple definitions.
“We don’t know what the other costs were but you can perhaps see why they have made a profit,” he told Football Insider’s Adam Williams.
“But when a company says we have made X profit, it can be misleading. What profit are we talking about? Is that operating profit, or profit before tax, or profit after tax?
“There are many, many definitions. So, it really does depend on which one you’re using with regards to this.”
Also detailed in the accounts was the £4.95m that owner Guochuan Lai paid to himself during 2020-21.
The borrowing has still not been repaid and has an interest rate of just £50,000.
In other news, Expert suggests West Brom “on the brink” of mass exodus after behind-the-scenes blow.