West Bromwich Albion is reportedly accused of violating financial regulations, which could make the relegation battle in the English Championship more tense and unpredictable than ever.
West Bromwich Albion currently sits in 20th place in the English Championship (EFL), just two positions and two points above the relegation zone. However, the club could be pushed into the relegation area if points are deducted.
According to The Telegraph, this is a possibility that could very well happen, as West Brom is accused of breaching profit and sustainability regulations last season. According to EFL rules, any penalties from the previous season will be applied to the following season.
Earlier in February, Leicester, who are currently in 23rd place and four points from safety, were deducted six points.
West Brom is reportedly seeking to delay the penalty until next season. However, reports indicate their breach is not overly severe. Besides a potential points deduction, the club could also face a financial penalty or a transfer ban. The club currently has 14 days to respond to the charges from the time of the accusation.
The Baggies have also stated on social media, affirming they have fully complied with profit and sustainability regulations and will cooperate with the EFL's financial body to resolve the matter.
Regarding financial status, West Brom recorded an operating loss of £17 million in the most recent financial year, down from £31 million the previous year. The cumulative loss since July 2022 has reached £55.6 million, exceeding the permitted £39 million limit over the three-year cycle.
Additionally, the club has a debt of £53 million and must repay a £25.7 million loan to the American investment group MSD Holdings by the end of 2026.
On the pitch, West Brom appointed former midfielder James Morrison as interim manager in March after dismissing Eric Ramsay. During this period, he won 2 out of 8 matches but never lost, with the last three being draws, most recently against Millwall.
The club will visit Preston this weekend, a match that could see them fall into the relegation zone if they lose. Currently, only seven points separate the teams from 19th to 23rd place, while Portsmouth and Oxford United still have unplayed matches that could alter the relegation battle landscape.
The last time West Brom featured in the Premier League was the 2020/21 season, after which they were relegated and have yet to return to the top flight in England.