By Kieran Maguire

29th Jul, 2022 | 3:01pm

Kieran Maguire issues 'remarkable' West Brom takeover claim as American investors emerge

New cost control measures in the EFL make West Brom a far more attractive takeover prospect to overseas investors.

That is the view of finance guru Kieran Maguire, speaking exclusively to Football Insider about the mooted proposals to transform the financial structure of the EFL.

As reported by The Times on Tuesday (26 July), the Premier League and EFL are close to agreeing what has been dubbed a ‘new deal’ for English football.

It is understood that a new revenue distribution model would cut parachute payments in favour of merit payments, while a new cost control system would also be introduced.

The Athletic’s Matt Slater tweeted later that day that there is now increased interest in investment in the EFL from US businesspeople as a result of the news.

West Brom owner Guochuan Lai recently came under fire after it emerged that he lent himself £4.9million of the club’s money in 2020-21 at a measly rate of interest.

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The loan has not yet been repaid.

Maguire explains why the likes of the Baggies could attract investment from across the pond if the so-called ‘new deal’ protects against “remarkable” financial losses currently seen in the Championship.

Investors are enthused at the prospect of the riches of the Premier League,” he told Football Insider’s Adam Williams.

“However, they are also aware that the average losses of clubs in the Championship are £300,000 per week. That, looked at in isolation, is pretty remarkable.

That, I think, acts as a disincentive to get involved in football.

“Anything that can reduce revenue and improve cost control is therefore going to be welcomed by investors because they don’t want to be on the hook for absorbing losses on a long-term basis.”

In other news, MK Dons, Cheltenham and Crewe Alexandra race to sign West Brom rising star Ethan Ingram.