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West Brom could be hit with points deduction and relegation after season has ended
TL;DR
West Brom faces a potential points deduction that could lead to relegation from the Championship after the season ends, as they contest charges of breaching profit and sustainability rules. The EFL's timeline for sanctions is unclear, complicating West Brom's relegation battle with only four games left in the season.
West Brom could be given a points deduction that relegates them from the Championship after the season has finished as the club contest charges of breaching the English Football League’s profit and sustainability (P&S) rules.
With the Championship league season concluding on 2 May the EFL is running out of time to hear the charges against West Brom, which relate to an alleged breach of the £39m loss limit in the three-year period culminating in the 2024-25 season. EFL sanctioning guidelines state that any punishment for a P&S breach must be applied in the campaign after it took place, which in West Brom’s case means this season, but the rulebook does not give a definitive cutoff point so it is unclear when the season ends.
The situation is complicated by the fact that West Brom are in the middle of a Championship relegation battle, with James Morrison’s side two points clear of third-bottom Oxford United with four games remaining, so even a small points deduction could send them down to League One. As well as the final round of league games there are alternative interpretations of when the season finishes, such as the Championship playoff final on 23 May or even the publication of next season’s fixtures on 25 June, with the latter date having a significant historical precedent which could give the EFL leeway to conclude the case.
In 2021 Derby were fined £100,000 by an independent commission for financial irregularities the night before the following season’s fixtures were published on 24 June, with the EFL reserving the right to appeal and push for a points deduction. Derby’s position that season was similar to West Brom’s current plight, with Wayne Rooney’s side avoiding relegation to League One by a single point at the end of the 46-match league campaign.
As a result the EFL took the extraordinary step of arranging what it described as an “interchangeable fixture list” for Derby and Wycombe, who had been relegated to League One, while it considered whether to appeal.
Wayne Rooney was Derby’s manager when they were docked 21 points for P&S breaches and entering administration. Photograph: Bradley Collyer/PA
The EFL made it clear it was unhappy with the independent commission’s decision to limit Derby’s punishment to a fine, but on 2 July announced that the board had “regrettably” concluded there was insufficient grounds to appeal. Derby began the following season in the Championship as a result, but were docked 21 points during that campaign for further P&S breaches and entering administration, which resulted in relegation the following year.
West Brom are determined to fight the charges and insist they have complied with P&S rules despite recorded combined losses of £55.6m since 2022, although that figure does not include the deductions that are permitted for spending on infrastructure and community projects. Any sporting sanction imposed by an independent commission following the end of the league campaign would almost certainly lead to an appeal from West Brom and have significant legal ramifications.
West Brom’s dispute with the EFL is understood to centre on its financial reporting unit’s treatment of the club’s interest payments on loans taken out to provide working capital during the lengthy sale process which resulted in Shilen Patel buying out Chinese businessman Guochuan Lai two years ago. Everton’s clash with the Premier League over interest payments related to the building of their new stadium was central to their profit and sustainability rules charges, which led to them being docked 10 points three years ago, reduced to six on appeal.
The alleged breach was first reported by the Daily Telegraph on Monday, with West Brom responding with the short statement that “the club considers that it has fully complied with the P&S rules and will continue to cooperate with the EFL’s club financial reporting unit”.
The EFL and West Brom declined to comment when contacted.
Q&A
What charges is West Brom contesting regarding their financial practices?
West Brom is contesting charges of breaching the English Football League's profit and sustainability rules, specifically related to exceeding the £39 million loss limit over a three-year period.
How could a points deduction affect West Brom's chances of staying in the Championship?
A points deduction could significantly impact West Brom's relegation battle, potentially dropping them to League One, as they are currently only two points clear of the relegation zone.
When does the EFL need to apply any sanctions against West Brom?
The EFL must apply any sanctions for a P&S breach in the season following the breach, but the exact cutoff date for when the season ends remains unclear.
What precedent exists for EFL sanctions affecting relegation outcomes?
In 2021, Derby faced similar circumstances where they were fined for financial irregularities, and the EFL considered a points deduction that could have affected their relegation status, highlighting the potential consequences for West Brom.
