Baggies £33.9m down as profits take a dive

West Bromwich Albion have reported a £33.9m loss for the 2023-24 season, marking the club’s first without Premier League parachute payments since 2002.

It’s the first time since their 2002 promotion that the Baggies haven’t received any Premier League funding, after several promotions and relegations, including a strong top-flight run from 2010 to 2018.

Following an £11m loss in 2022-23, the club’s turnover dropped from £56.7m to £28.2m in 2023-24, attributed to the end of parachute payments and a decline in sponsorship income.

Co-owner Shilen Patel has warned that another loss is expected for the 2024-25 season.

In a club statement, he said:  “It’s important to recognise the period these accounts cover. From the time of my takeover, after the January window, there was not a lot of opportunity to make substantial changes to the trajectory the club was on.

“We are also, unfortunately, going to be looking at another year of losses in the 2024-25 season, but all of this is within the projected range. We’ll need to continue to be savvy. However, with a little more clarity around the system under which we’re going to be running the 2025-26 season, we can begin to play more effectively.

“Our goal remains to be at the top of the Championship until we can break through to the Premier League. I think we continue to be on track to do that.”

The Baggies, now under the management of Tony Mowbray following his surprise return in January, currently sit fifth in the Championship, 19 points behind an automatic promotion spot.

After leading the table in September, they remain in the hunt for a play-off place, aiming for a second consecutive season in the post-season.

In 2023, the club was sold to Florida-based entrepreneur Shilen Patel and his father, Dr. Kiran C. Patel, in a £60m deal.

The sale came after discontent with the previous chairman, Guochuan Lai, who missed several repayment deadlines for a £4.95m loan he took out to support his other business, Wisdom Smart Corporation, during the pandemic.

Lai had promised to repay the loan with £50,000 interest by December 2022 but failed to meet that deadline after pushing it back multiple times.

On top of this, Albion had also taken out a £20m loan in 2022 from US investment group MSD Holdings, with a 10% interest rate, to cover its general business operations.

Since taking over, Patel has invested £25.3m into the club and continues to cover a £2m monthly shortfall.