Baggies chairman takes on another loan as investigation concludes
West Bromwich Albion has closed an independent investigation into a 2014 loan taken out by former chairman Jeremy Peace.
Shareholders for Albion, the club’s minority shareholders, pushed for a review into the £3.7m loan from the club to Peace’s firm WBA Holdings. It claimed the funds may have helped Peace purchase more shares in WBA’s parent group.
King’s Counsel, Sebastian Isaac KC was appointed to lead an 18-month investigation into the deal and reported back to the club and S4A. Both have concluded that no further action will be taken and the matter is closed.
New owner and chairman Shilen Patel agreed on a funding deal with the club and the English Football League to 30 June 2025 as part of Bilkul’s £60m acquisition of the club in February this year. The liability for the loan has been transferred to Bilkul, meaning the club will not sustain any loss as a result of the loan.
It’s estimated the interest for the 2014 loan has exceeded £1m, meaning around £5m is owed.
Lai took out a £4.95m loan in March 2021 to help another of his companies – Wisdom Smart Corporation, through the pandemic.
The money was “repaid in full, including interest” by Patel to the club in March.
Patel is a serial investor with experience in technology, healthcare, sport, real estate, finance, food & beverage, and numerous other sectors across five continents. He has owned a minority shareholding in Serie A club Bologna FC 1909 since 2014.
When Patel took over the club, he said: “I am thrilled and grateful to have reached an agreement to become the custodian of West Bromwich Albion Football Club. The club’s exceptional history, support, and potential set it apart even here in the cradle of football.
“My goal is to help the club achieve a future worthy of its history as a pioneering top-flight club that marshals the pride and passion that have defined the Albion for generations”.