Albion owner looks to broker new Peace deal
THE owner of Premier League football club West Bromwich Albion could be on the verge of maximising his investment in the business following the huge new TV broadcast deal.
Jeremy Peace is understood to have appointed a broker with the option of attracting fresh investment into the Hawthorns or selling the club altogether should an attractive offer be forthcoming.
The move illustrates the potential value of Premier League football clubs to investors because of the massive revenue offered by the TV deals.
The Premier League last week agreed a new £5.14bn, three-year TV deal with Sky and BT Sport. It represents a 70% increase on the current £3bn deal.
Sky have paid the lion’s share – £4.17bn – in return for which it got five of the seven live packages on offer, equating to 126 live games. BT Sport secured the remaining two slots for £960m; a deal which will net them 42 matches.
Dropping out of the Premier League means teams will take a massive hit to their revenues and with both WBA and Aston Villa currently flirting with relegation it explains why both acted fast to ensure they retain their elite status.
When it appeared the Hawthorns side might be in danger of dropping into the relegation zone, the owner acted quickly by dismissing head coach Alan Irvine and replacing him with Tony Pulis, a man with a proven record for keeping teams in the top flight.
This might also explain why Aston Villa manager Paul Lambert suffered the same fate as Irvine last week when the Villa Park side dropped into the relegation zone.
The Villa board have acted quickly and have appointed Tim Sherwood as head coach with a deal in place until 2018 – a bold step for a relatively unproven Premier League manager.
Peace, who owns almost 90% of WBA, is a canny operator and will be looking to maximise the club’s financial position.
Estimates vary as the club’s value but conservative estimates place it at around £40m – relatively cheap for a Premier League side.
Enhancing the proposition is the club’s strict financial management which has ensured a debt-free operation – again unusual in a Premier League club.
Peace had made a public appeal for fresh investment in 2008 but received no offers. He will be hoping the situation has a different outcome this time.
However, a deal is by no means certain.
Villa owner Randy Lerner placed the club up for sale in 2013 and yet no one has come forward with a viable bid, so far as is known.
This may again change provided Villa can retain their top flight status come the end of the season.
