What West Brom's latest accounts said in relation to interest on MSD loans

Loan interest believed to be at the centre of Albion’s alleged breach of financial rules was ‘recharged’ to owners Bilkul, according to the club’s financial results.

The Baggies’ parent company West Bromwich Albion Group took two loans from Michael Dell’s MSD Holdings Limited towards the end of former owner Guochuan Lai’s disastrous spell in charge of the club.

An interest-stacked loan of £20million, in October 2022, was extended by £8m in November 2023 for working capital for the struggling Baggies to continue paying the bills amid zero investment from Lai’s Yunyi Guokai group and without receipt of parachute payments.

But news this week of a financial charge from the EFL, which could threaten Albion’s Championship status, is understood to relate to a discrepancy in the payment of £5.2m interest and who is liable when it comes to financial fair play regulations.

Owner and chairman Shilen Patel has provided cash injection to cover the interest, according to the accounts, and it was judged from Albion’s perspective that the interest has been taken on by Bilkul Football WBA.

A statement in relation to the MSD loan on WBA Group’s accounts for the 2024/25 accounts read: “It remains the judgement of the director based on the available evidence that the obligations associated with the loan continue to be recognised by West Bromwich Albion Group Limited.

“However, Bilkul Football WBA, LLC have provided cash injections to fund the payment of interest, and the group has therefore recharged interest to Bilkul Football WBA, LLC.”

Albion said in a statement they believe they have fully complied with profit and sustainability (PSR) regulations which require losses of no more than £41.5million over three seasons - and the case will be heard at a hearing.

As per requirements, Albion’s accounts - audited by Birmingham firm Azets - were filed to the Football League by December 31 and subsequently studied for compliance.

The timing of the recent charge by the governing body has left supporters fraught with concern.

A hearing is expected to take place in April and must be held within 28 days of the compliance report from the EFL’s club financial reporting unit.

The club, who are two points clear of the Championship relegation places, return to action away to mid-table Preston, the first of four remaining games, on Saturday.

But, if required, a potential appeal against any decision and sanctions could take the process beyond the final day of the league season, when Albion visit rock-bottom Sheffield Wednesday.