New proposal will stop new West Brom owners from ‘splurging millions’ – Adrian Goldberg

Adrian Goldberg has indicated that upcoming regulations in the Championship will hinder any potential new owners of West Bromwich Albion from making extravagant expenditures on player transfers. The team is reportedly on the verge of a takeover, signaling the end of Guochuan Lai’s tenure at The Hawthorns, marked by challenging seasons that forced Albion to rely on free transfers and loan deals in the transfer market (Express & Star, December 13).

Despite the imminent change in ownership, the likelihood of substantial immediate investments in the transfer market appears slim. Goldberg suggests that the proposed regulations will curtail lavish spending, mirroring the financial constraints seen at clubs like Manchester City and Chelsea. Speaking on The Liquidator podcast on December 17, he explained that the current proposal involves capping Championship clubs’ spending on salaries at 70% of their income. This concept, derived from UEFA, is intended to extend across the leagues through an agreement between the Premier League and the EFL.

Goldberg expressed support for the idea but acknowledged that it would require West Brom to further reduce their wage bill due to their recent history of overspending relative to their income. Consequently, the prospect of a new owner injecting significant funds into the club is complicated by the necessity to adhere to controlled spending.

Chris Lepkowski concurred, emphasizing that the days of a new owner significantly financing West Brom or any club, reminiscent of Jack Walker or Roman Abramovich, are fading away. The impending rule changes are expected to impact new owners, compelling them to abide by the forthcoming regulations.

Different approach

Many times, when a new owner takes over a football club, there’s an expectation that they can quickly address all issues by spending extravagantly. However, this approach seems unfeasible in the EFL now.

West Brom has a history of overspending, and currently, their squad’s value exceeds 70% of their income, leading to a continuous reliance on loans at The Hawthorns. Consequently, new owners can’t simply fund immediate transfers.

While it’s evident that the Baggies need to strengthen their squad for a shot at Premier League promotion, complying with football regulations makes this a challenging task. Albion might need to restructure before making substantial investments.

https://twitter.com/TheLiquidatorP1/status/1736687246026395794

Though completing a takeover is a positive step, it was never expected to be an instant solution. There’s a glimmer of hope for supporters, but West Brom is not completely out of the challenging situation just yet.