April 22, 2024
Finance

Finance expert on potential new West Brom stadium after takeover agreement


Finance expert Dan Plumley has provided an update on West Brom’s potential plans to build a new stadium.



Following news of the takeover agreement between Guochuan Lai and the Patel family, it was claimed that the capacity of the Hawthorns should be increased.


This could be done by either investing in renovating the Hawthorns, or by building an entirely new stadium, with the Baggies potentially eyeing a 40,000 capacity.

The impending arrival of the Patel family, who will own 87.8 per cent of the Midlands outfit, has raised optimism for the future ahead among supporters.

It has been a difficult last few years under Lai, who has overseen a rapid decline in the club’s financial standing.


West Brom stadium claim made

Shilen Patel

Plumley believes there are many factors that will need to be taken into account with any potential new stadium plans at West Brom.

But he has claimed that it could be beneficial financially in the long-run, especially if the club can secure its status in the Premier League.


“It’s really big,” said Plumley, via West Brom News.

“You’ve got to factor in the planning side of that, is that possible within the location that it is in currently? I’m not so sure, I haven’t seen the planning details on the land surrounding that stadium if there is even space to do that.

“If you’re going to go to that big of an uplift then there are considerable questions to be asked about how you do it, of course, the alternative is you build a new stadium in a new location, but that has its risks as well.

“I think the principle of increasing capacity is there for everyone to see and obviously, if you can do that, you can squeeze more out of your matchday operations.

“You can then look at adding in hospitality offers and what you do with that stadium if it’s not in use on matchday, but that does seem like a big leap to go from 26,000 to 40,000.


“A lot of that will depend on league status as well, as you’ve got to prove you can match that capacity with demand as well so it will be interesting to see.”

West Brom league position


West Brom are competing for promotion to the top flight this season under Carlos Corberan.

However, the club will likely have to settle for a play-off place, with the gap to the top two currently 16 points with just 12 games remaining.

The Baggies are fifth in the table, four clear of Norwich City in seventh, as they eye a top six finish.

Next up for Corberan’s team is a big game at home against ninth place Coventry City on 1 March.

carlos-corberan

New Stadium would be huge for West Brom

Whether the new owners are interested in increasing the capacity of the club’s stadium remains to be seen.

But it is the kind of costly short-term investment that could pay off in the long-run.


The new owners should first prioritise gaining promotion to the Premier League, and sustaining their place in the top division.

But it could be a shrewd business move once that is secured, as the long-term financial benefit could outweigh the initial up-front costs of building an entirely new stadium.

Renovating the Hawthorns is also a possible option, but it may yet depend on what permission the club is given before full details are known on what would work out best for the club.



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