Lewis Cox and Jonny Drury discuss PSR and the West Brom financial situation on the latest episode of the Baggies Broadcast. On the new episode, a question from a fan asks for details on Albion's PSR position. Lewis looks at how things have changed, the work Albion have done behind the scenes and whether they will have to sell an asset this summer to keep within the rules.
00:00It's not. With PSR calculations, is it West Bromwich Albion Football Club or West Bromwich Albion group accounts that are applicable?
00:07Are there any exclusions after the academy, the maintenance facilities and women's team?
00:12This is kind of linked to what we talked about before about PSR.
00:14Obviously, your knowledge of this is probably a lot better than mine.
00:17So I will hand this across to you.
00:19Oh, yeah, Spiro. Thanks for the question.
00:21It's group. It's West Bromwich Albion group accounts that relate to PSR.
00:27I remember double and triple checking that and having that re-emphasised to me a few years ago when reporting on the account sort of towards the end of lie, I think.
00:36Maybe start of Bilbo. I don't know.
00:38So going back a couple of accounts, group losses were posted around 7 million, while club losses were a bit more at 11.
00:47Obviously, group are the parent company, West Bromwich Albion Football Club.
00:50So the group losses for account year before the last one were slightly lower, 7 million.
00:58Now, we know the losses of the most recent accounts to 24, year to 24 with 33, 34 million.
01:05So the crux of it is no more than 39 million pounds can be lost across a three-year cycle, a continuing cycle.
01:15So the basis that I've just said, a 7 million and a 34 million, Albion are around that.
01:21And that fits exactly with what we've been told, what we've been reporting about Albion, you know, working to stay the right side of this.
01:28And I don't think it's easier. It's straightforward.
01:31And I think it requires sharp, smart minds that, you know, I think we've seen from Bilbo so far.
01:37And we've heard, haven't we, from Shillen Patel, from Andrew Nesta, but certainly from Shillen Patel, the chairman,
01:44in a couple of his statements to fans where he's talked about the accounting.
01:48And he's spoken quite openly, I think, when it comes to recruitment around, you know, thinking outside the box,
01:53being creative with our recruitment, you know, looking in maybe different other markets, that type of thing.
01:59I remember him saying at one point as well that actually, I think sort of managing through this PSR cycle
02:06and staying within the remits has been maybe slightly easier, probably the wrong word, but slightly, yeah,
02:14it was, you know, to say more comfortable than the owners coming in possibly feared it would be.
02:20So I know, you know, Spiro asking this question and there are fans out there listening to this who would be concerned,
02:25you know, that the figures look like Alvin will be treading water and be mightily fined to the cutoff,
02:33you know, to the sanction point of the 39 million over three years.
02:36What I would say is, and look, none of us can read the future, but, you know, these owners seem to me,
02:42and I think have proved so far to be very astute, proper business operators.
02:48And I don't really see at all why they would come in, save the club, invest so much in the club, let's be honest.
02:54To put themselves in a position where, you know, Alvin, we don't know this, and it's probably unlikely,
03:00but Alvin could be fighting for second place, first place come the spring.
03:04And all of a sudden, you're telling me that a point sanction, a points penalty,
03:08because of being a little bit over PSR, could cost them promotion to the Premier League
03:13and however many hundreds of million that's worth.
03:15I just, that just won't happen.
03:16You know, I just, I can't say for definite, but I just cannot see that.
03:19And the same goes for the playoffs.
03:21You know, what about point sanction, meaning Alvin don't get into the playoffs next spring?
03:24It's just not feasible for me.
03:27So I would, you know, I would expect the people working, the accounts, the finances to be,
03:36you know, we've had children say, haven't we, that, you know, the ownership,
03:39when the £34 million losses were announced in March time, I think, for up to 2024,
03:46you know, these are eye-opening, eye-watering figures.
03:48But actually, this is how it was at the end of lie.
03:51This is how bad the club was shelling money and the owners knew exactly what was what.
03:57And, you know, they've made a, you know, quite business plan to be getting out of this.
04:02And hopefully we're seeing it.
04:05You know, Alvin are, look at the recruitment, their signing players, their, you know,
04:11fees have been spent all, you know, since this time last year, hasn't it?
04:14And Alvin continue, you know, continue to do so.
04:19What we've spoke about in terms of a sale, you know, it's not a bottomless pit, is it,
04:22when it comes to PSR?
04:23They can't just keep spending fees and spending fees because things are tight.
04:27So, you know, some things will have to go the other way.
04:31They already have.
04:32I mean, think back to Carlos Corbrant and the compensation when, obviously,
04:36Valencia took him back to Spain.
04:37Or think back to the players the club sold, was it last August?
04:41Quite late in the window, Johnny, when Thomas Asante went and, was it,
04:47Tans and Yucouslu, stuff like that.
04:49Other exits, obviously big earners at the end of their deals, you know,
04:56who no longer be on those big salaries.
04:59So, yeah, look, and something else that emerged last season,
05:03the club working pretty tightly with the EFL, weren't they?
05:06You know, just to ensure that everything's going right, really,
05:10I had it explained to me as far as I understand,
05:12just to ensure that the club aren't spending within the, you know,
05:16outside of their means or what they're capable of
05:18or falling the wrong side of these regulations.
05:21So, I wouldn't be concerned.
05:23I'm confident in what the ownership have done on that side of it
05:27and how they operate.
05:29And I think supporters should be.
05:31With regards to the second part of the question,
05:33what else sort of is excluded when it comes to PSR?
05:36You know, Spyro mentioned academy, women's team, sort of facilities.
05:40That's what I'm aware of.
05:41Now, obviously, Bilkel have invested in work on the Hawthorns.
05:45We know they're invested in pitches, training pitches.
05:47You know, look at the women's team.
05:50They've made Javon Hodgett still a full-time head coach
05:53of the women's team, so an investment there.
05:55Others we won't quite know about that won't be as prominent
05:58or headlines, you know, I'm sure likewise with the academy.
06:01So, yeah, those are external and not included in, you know,
06:05PSR, profit and loss.
06:06Another thing I'd quickly mention just finally on this,
06:09talk about the 34 million losses that appeared
06:12in the last set of accounts as it was outlawed to me
06:16and as we reported at the time.
06:17Not all of that 34 million pound figure,
06:22and I don't know the exact specifics, counts towards PSR.
06:25You know, that includes everything spent.
06:27And how I just mentioned there are exceptions to it there.
06:30So it would be hard slash pretty impossible for us
06:34before the next set of accounts to know the exact figures
06:37at the moment.
06:38But I'd expect Albion to be fine when it comes to finances.
06:43And the way they are operating this summer, you know,
06:46they won't push the boat out too much that it costs them.
06:49You know, they'll do it within the means.
06:50And that's where the business will come in, to be honest.
06:54And in a few weeks or a month or six weeks when we're talking potentially
06:58about the sale of a player, then it'll come back to this conversation,
07:01and then it's just up to replenishing the squad,
07:06using the funds wisely.
07:08You know, if a player exits for a good fee,
07:10then using it to perhaps bring another couple in
