West Bromwich Albion have been charged with an alleged breach of financial rules in a shock development for the Championship’s relegation battle.
Telegraph Sport understands West Brom have allegedly breached English Football League’s profit and sustainability rules for last season and are facing the threat of a points deduction.
Under English Football League guidelines, any sporting sanction from the previous season must be applied in the following campaign, which would represent a severe blow to Albion’s hopes of survival with four games left.
It is understood, however, that the Championship club are attempting to delay any punishment until the 2026-27 season.
West Brom are 20th in the table after seven matches unbeaten under caretaker manager James Morrison, two points above Oxford United, who occupy the final relegation place. Leicester were deducted six points in February for breaching financial rules, failing in an appeal to reduce the sanction last week.
The exact amount of West Brom’s breach is not thought to be significant and only a minor number above loss limits, but a points deduction, transfer ban or fine are all potential punishments.
Football League clubs have to submit their annual accounts for the previous financial year by December 31. In March, West Brom reported an operating loss of £17m, which was down from £31m in their previous financial accounts. Their overall losses since July 2022 are £55.6m, which exceeds the permitted amount of a maximum £39m over the three-year reporting period.
That figure is not a definitive profit and sustainability figure as spending on permitted add-backs, such as expenditure towards women’s football, community development and the academy, is exempt from calculations.
However, after the EFL’s club financial reporting unit assessed their accounts for compliance, West Brom were informed of an alleged breach. The club have 14 days to respond from the date of the charge. The EFL has declined to comment.
In a statement released on Monday afternoon, the club said: “West Bromwich Albion acknowledges media reports relating to the club’s compliance with the EFL’s profit and sustainability rules.
“The club considers that it has fully complied with the P&S rules. The club will continue to co-operate with the EFL’s club financial reporting unit and looks forward to resolving this matter. Albion understands the concerns of supporters and thanks fans for their unwavering support of the team, whose success on the pitch during the final four games of the season remains our absolute priority.
“It would not be appropriate for the club to comment further at this stage.”
Last year, West Brom appointed John Pelling to troubleshoot their finances on a short-term basis. Pelling has previously worked at Stoke City, Nottingham Forest, Bolton and Sheffield Wednesday as financial director and is vastly experienced in PSR.
Relegated from the Premier League in 2021, West Brom are owned by Florida-based businessman Shilen Patel and his company Bilkul Football WBA.
Parachute payments have now expired and Patel has had no option but to invest huge amounts of money to reduce losses inherited from the former owner Lai Guochuan.
West Brom also have to pay back a £25.7m loan to American investment group MSD Holdings before the end of this year. Total borrowings were reported as £53m in their most recent accounts.
Morrison’s team return to Championship action this weekend with a trip to Preston North End on Saturday.