West Bromwich Albion faces the possibility of a points deduction that could lead to their relegation from the Championship after the current season concludes. The club is contesting allegations of violating the English Football League’s (EFL) profit and sustainability (P&S) regulations.
As the Championship season is set to finish on May 2, the EFL has limited time to address the charges against West Brom, which involve an alleged infringement of the £39 million loss cap over a three-year period ending in the 2024-25 season. According to EFL guidelines, any penalties for P&S violations must be enforced in the season following the infraction. For West Brom, this implies that any punishment would apply to the current season, but the lack of a specific cutoff date in the rulebook raises questions about the actual end of the season.
The situation is further complicated by West Brom’s current struggle against relegation, as they are just two points above third-bottom Oxford United with four matches left to play. Even a minor points deduction could result in their drop to League One. Moreover, different interpretations exist regarding when the season officially concludes, including the Championship playoff final on May 23 or the announcement of next season’s fixtures on June 25. The latter date has historical significance, potentially offering the EFL some flexibility in resolving the case.
In 2021, Derby County faced a £100,000 fine from an independent commission for financial misconduct shortly before the fixtures for the next season were released on June 24. The EFL retained the right to appeal this decision, seeking a points penalty. Derby’s situation that season mirrored West Brom’s current circumstances, narrowly escaping relegation to League One by just one point at the conclusion of the 46-match league season.
Consequently, the EFL took the unusual step of creating an “interchangeable fixture list” for Derby and Wycombe, who had already been relegated, while deliberating on an appeal. The EFL expressed dissatisfaction with the independent commission’s decision to impose only a fine on Derby but announced on July 2 that they regrettably found insufficient grounds for an appeal. Derby subsequently commenced the new season in the Championship but faced a 21-point deduction later for additional P&S violations and entering administration, which led to their relegation in the following year.
West Brom is committed to contesting the charges, asserting compliance with P&S regulations despite reporting cumulative losses of £55.6 million since 2022. This figure does not account for allowable deductions related to investments in infrastructure and community initiatives. Should an independent commission impose a sporting sanction after the league season ends, West Brom is likely to appeal, which could have significant legal implications.
The disagreement between West Brom and the EFL reportedly revolves around how the club’s financial reporting unit has handled interest payments on loans taken to support operations during the prolonged sale process that saw Shilen Patel acquire the club from Chinese businessman Guochuan Lai two years ago. This issue is reminiscent of Everton’s conflict with the Premier League over interest payments tied to their new stadium’s construction, which resulted in a 10-point deduction, later reduced to six on appeal.
The allegations were initially reported by the Daily Telegraph, to which West Brom issued a brief statement asserting, “the club considers that it has fully complied with the P&S rules and will continue to cooperate with the EFL’s club financial reporting unit.”
Both the EFL and West Brom have refrained from commenting when approached for additional information.
