West Brom have been dealt a huge takeover bid from The Athletic.
West Brom have been embroiled in takeover talks for some time now.
Current owner Guochuan Lai has become a widely disliked figure for his poor management of the club, his willingness to take loans backed against the club, and his general lack of investment.
Ahead of this month, it was claimed that the Baggies were in desperate need of a takeover with West Brom Lai’s finances set to run dry early in 2024.
But The Athletic have now revealed a hugely positive update on the Baggies’ takeover situation…
Three bids in for West Brom as huge takeover update emerges
The Athletic has revealed that West Brom owner Lai has received three ‘credible’ takeover bids, and that the current Baggies owner is ‘now entertaining more realistic prices for his shares’.
The Athletic has also detailed the three bidders…
The leading group to take over West Brom is one ‘put together’ by the sports lawyer Chris Farnell, who was spotted at a West Brom game earlier in the season, Egyptian investor Mohamed Elkashashy and local businessman Alex Hearn; The Athletic say that there are other investors in this group, ‘but their names remain under wraps for now’.
It’s also added that Hearn previously loaned £2million to Lai which is yet to be repaid. Hearn is now owed much more than the initial £2million but he would be ‘happy to convert that debt into equity’.
Armenian entrepreneur Roman Gevorkyan is the man behind the second bid. He’s looking to add to his footballing portfolio which includes stakes in French second tier outfit Paris FC.
The third bid comes from Indian-American entrepreneur Dr Kiran Patel. The Athletic describes him and his family as the ‘horse backed by MSD Partners’; MSD are the firm who’ve loaned West Brom upwards of £27million in the past couple of years.
Patel’s bid is said to be a ‘reasonable’ alternative for the Baggies should the bid from Farnell, Elkashashy, and Hearn fall through.
Progress being made, but time remains of the essence
West Brom are certainly leaving this takeover bid until the last minute.
There’s a lot hinging on it too; not securing a takeover in the coming weeks could really plunge the club into financial despair, which could prove fatal not only to the club’s prospects this season but to their long-term future as well.
Carlos Corberan continues to work miracles on the pitch with West Brom remaining in 5th place of the table.
But he’s in desperate need of new signings this month and this takeover uncertainty will only serve to hinder transfer activity, as incoming players will surely be wary of new owners not coming in as it would certainly impact on their careers.
Loan signings looks like the best option for the Baggies this month and they remain an attractive place for clubs to send their younger players.
But West Brom can’t always rely on loan signings and with so many first-team players out of contract in the summer, the Baggies could be facing a major squad rebuild in the summer.
The latest takeover update though suggests that a takeover could soon be in its final stages.