In the article I have just looked at he has written;
‘Chief executive Mark Jenkins has borrowed against next season’s parachute payment from the Premier League, and has guaranteed the club will repay the loan once they receive that money.’
This is what Mark Jenkins said in March 2018
Mark has been speaking as Albion filed the Club’s annual accounts up to June 2017, admitting a year of record-breaking figures has been followed by investments which have left him needing to organise the Club’s first overdraft for more than 10 years.
CEO Mark Jenkins discusses his plans following release of latest Club accounts
New Premier League deal and 10th place performance sees record figures for 2016-17
Turnover increased by £39.6m (40.3%) to £137.9m with profits before tax jumping to £39.7m from £1.0m;
Profit includes the sale of Saido Berahino
Player assets increased to £38.3m from £24.9m at 2016
Cash at bank rose to £39.6m at 30 June 2017, from £15.9m
But Jenkins warns of need for “overdraft facility†following spending of the last year
Baggies fans should not be alarmed, he says, as the overdraft is not sizeable in Premier League terms but it is an indication of how the Club has been blown off course in the last 12 months and helps underscore his view that a strong business performance must be the foundation stone to Albion’s recovery on the pitch.
“The annual accounts shows what really has happened over the last 24 months if you look in detail,†Mark told WBA TV.
“The accounts cover the 2016-17 season which saw us placed 10th in what we must consider a successful season despite a slightly disappointing finish. It was the first year of the new TV deal and normally in that situation the Club performs well financially. We had record turnover, a profit of just under £40m which included the sale of Saido Berahino …. but still, £40m in the bank which is a substantial resource.
“But if we look further, the auditors have insisted that I do make note that we are going to have to have a small overdraft in the near future which just goes to emphasise the activities of the year which has followed. I want to emphasise that it is a small overdraft but this Club has not had an overdraft for over 10 years now which makes it new territory for West Bromwich Albion in this era.“Clearly, it has not been as successful a season. There is going to be a significant loss in next year’s accounts, not to the level of profit recorded in these accounts of course, but it demonstrates how the board have used the resources - and a little bit more besides - investing in the squad and the infrastructure of the stadium. We have wages, transfer fees and loan fees running at record levels and yet we find ourselves in this position.
It's an overdraft, not a loan.
A quick look at the accounts will show that there are a number of revenue streams that the club can use to make good the overdraft, but the parachute payment makes good provocative media talk.
Also the overdraft was identified in March 2018, & therefore almost certainly included for in this seasons's budgets
Finally, this is an article from the Premier League (dated 17 May 2018) showing the payments made to clubs for the 2017/18 season, which clearly shows that payments are made in May, at the end of the season, & therefore included in current years accounts & not next years.
https://www.premierleague.com/news/691073It makes sense to pay off the overdraft as early as possible, & in my opinion, that's the reason for the early bird season ticket initiative.
Other than that, it's a non story.
