After failing in their quest to regain Premiership status last season, Albion received their final parachute payment of £11 million this summer.  But with add on fees from this summers transfers, plus the expected £8.5 million cash in for defender Curtis Davies from Aston Villa, West Brom expect to pull in money of similar amounts to the parachute payment next summer, allowing them an extra season to win promotion before any budget slashes become a reality. 

It is a clever move by the West Brom Chairman, who could have accepted the £8.5 million for Curtis Davies this summer, seeing transfer money rise to over a total of over £26 million.  However, by deferring payment for 12 months Peace has ensured that Albion do not fall foul of added taxman reductions.

Peace has had to think long and hard about Albion’s financial position.  The club were hit hard by relegation back to the Championship in May 2006, as revenue fell from £35.5 million to £23.8 million.  This included a £10.4 million loss of medial revenue, and a £700,000 loss on ticket sales.   

The club still harbour a net debt of £4.1 million, although this is of little concern given the clubs healthy position in the Championship at present, and the Hawthorns and modern training ground proving to be useful assets. 

Still, this hasn’t stopped Baggies fans asking that elusive question most football fans seem to ask themselves, where has all the money gone?  For this Peace has a simple answer.  Of the £17.7 million generated from transfers this season £12 million has been reinvested straight back into the team, with 10 permanent and 3 loan signings.  The £5.7 million remaining will be absorbed into the Baggies wage budget, with more incomings than outgoings (13 in only 8 out) there are more hands to pay, a factor which Peace believes will cost the club £7.6 million over the next four years. 

The summer activity caused much controversy amongst Albion fans.  Some rightly believe that Peace has made some excellent business deals.  Others have struggled to see the benefit of selling the clubs biggest assets if promotion and furthermore establishment in the Premiership are to be achieved.  Peace himself has commented that even he is surprised at his attitude of allowing some players leave this summer.  He told the Express and Star: 

“My attitude changed then from not allowing players to go to saying well let them go for the right price“. 

And why should Peace be criticised for this? Especially as some of those exits from the club had long expressed a wish for Premiership football.  Peace believes Mowbray now has a squad who are dedicated to Albion, and that the atmosphere around the Hawthorns is one of positivity.   

Peace is insistent that Premiership football is still the goal at Albion, but the new financial structure simply allows them time to achieve this.  A factor which is reinforced by the news that Albion have shelved plans to rebuild at the Hawthorns.  It had been widely reported that West Brom planned to redevelop parts of the Hawthorns, creating a capacity of over 33,000.  But as the club faces at least this season still in the Championship, and with gates down significantly on their last Premiership campaign, instead Peace plans to simply revamp the Halfords Lane stand.  The facelift will take place over the next 12 months, ensuring that modernisation at the Hawthorns is still taking place.  Peace has not however ruled out that the plan to redevelop may be resurrected should the club win back promotion to the Premier League.

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