The West Midlands side have reportedly been charged with a breach of Profit and Sustainability Rules, with any deduction they receive to have a huge impact on the relegation battle
West Brom are dealing with a potential PSR case(Image: Stuart Leggett/MI News/NurPhoto via Getty Images)
A five-point deduction appears to be the maximum punishment West Brom can receive for their alleged breach of Profit and Sustainability rules (PSR).
Reports this week say the EFL have charged the Baggies with overstepping the allowed loss limit for the three seasons ending with 2024-25.
The decision from any hearing could be decisive for Leicester City, with West Brom in the thick of the Championship relegation battle.
The EFL guidelines say that a punishment must be served in the season following the breach, and so would mean West Brom receiving any deduction this season, despite there being just over a fortnight until the final fixture.
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The Baggies themselves say that they have complied with the financial rules and Sky Sports report that the dispute is over £5m worth of interest payments to the club’s former owner Guochuan Lai.
They report that West Brom’s new owners, Bilkul, believe the payment should be attributed to them, rather than the club, whereas the EFL think the opposite. If it’s a club payment, then it would have to be factored into a PSR assessment.
If the case does depend on a £5m payment, it means West Brom can only have breached the loss limit by a maximum of £5m. The true figure could be lower than that.
According to the EFL’s sentencing guidelines, a £5m breach would be worthy of a five-point deduction. A breach of £2m to £4m is punished with a four-point deduction. If it’s under £2m, then it’s three points.
But that is only the starting point. Co-operation and good behaviour can see a punishment reduced in mitigation.
City are currently five points behind West Brom with four games to play, the Baggies now sitting just above the drop zone after Portsmouth’s win in midweek.
Under caretaker boss James Morrison, they are on a seven-game unbeaten run. They take on Preston this weekend.
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