00:00It's not. With PSR calculations, is it West Bromwich Albion Football Club or West Bromwich Albion group accounts that are applicable?
00:07Are there any exclusions after the academy, the maintenance facilities and women's team?
00:12This is kind of linked to what we talked about before about PSR.
00:14Obviously, your knowledge of this is probably a lot better than mine.
00:17So I will hand this across to you.
00:19Oh, yeah, Spiro. Thanks for the question.
00:21It's group. It's West Bromwich Albion group accounts that relate to PSR.
00:27I remember double and triple checking that and having that re-emphasised to me a few years ago when reporting on the account sort of towards the end of lie, I think.
00:36Maybe start of Bilbo. I don't know.
00:38So going back a couple of accounts, group losses were posted around 7 million, while club losses were a bit more at 11.
00:47Obviously, group are the parent company, West Bromwich Albion Football Club.
00:50So the group losses for account year before the last one were slightly lower, 7 million.
00:58Now, we know the losses of the most recent accounts to 24, year to 24 with 33, 34 million.
01:05So the crux of it is no more than 39 million pounds can be lost across a three-year cycle, a continuing cycle.
01:15So the basis that I've just said, a 7 million and a 34 million, Albion are around that.
01:21And that fits exactly with what we've been told, what we've been reporting about Albion, you know, working to stay the right side of this.
01:28And I don't think it's easier. It's straightforward.
01:31And I think it requires sharp, smart minds that, you know, I think we've seen from Bilbo so far.
01:37And we've heard, haven't we, from Shillen Patel, from Andrew Nesta, but certainly from Shillen Patel, the chairman,
01:44in a couple of his statements to fans where he's talked about the accounting.
01:48And he's spoken quite openly, I think, when it comes to recruitment around, you know, thinking outside the box,
01:53being creative with our recruitment, you know, looking in maybe different other markets, that type of thing.
01:59I remember him saying at one point as well that actually, I think sort of managing through this PSR cycle
02:06and staying within the remits has been maybe slightly easier, probably the wrong word, but slightly, yeah,
02:14it was, you know, to say more comfortable than the owners coming in possibly feared it would be.
02:20So I know, you know, Spiro asking this question and there are fans out there listening to this who would be concerned,
02:25you know, that the figures look like Alvin will be treading water and be mightily fined to the cutoff,
02:33you know, to the sanction point of the 39 million over three years.
02:36What I would say is, and look, none of us can read the future, but, you know, these owners seem to me,
02:42and I think have proved so far to be very astute, proper business operators.
02:48And I don't really see at all why they would come in, save the club, invest so much in the club, let's be honest.
02:54To put themselves in a position where, you know, Alvin, we don't know this, and it's probably unlikely,
03:00but Alvin could be fighting for second place, first place come the spring.
03:04And all of a sudden, you're telling me that a point sanction, a points penalty,
03:08because of being a little bit over PSR, could cost them promotion to the Premier League
03:13and however many hundreds of million that's worth.
03:15I just, that just won't happen.
03:16You know, I just, I can't say for definite, but I just cannot see that.
03:19And the same goes for the playoffs.
03:21You know, what about point sanction, meaning Alvin don't get into the playoffs next spring?
03:24It's just not feasible for me.
03:27So I would, you know, I would expect the people working, the accounts, the finances to be,
03:36you know, we've had children say, haven't we, that, you know, the ownership,
03:39when the £34 million losses were announced in March time, I think, for up to 2024,
03:46you know, these are eye-opening, eye-watering figures.
03:48But actually, this is how it was at the end of lie.
03:51This is how bad the club was shelling money and the owners knew exactly what was what.
03:57And, you know, they've made a, you know, quite business plan to be getting out of this.
04:02And hopefully we're seeing it.
04:05You know, Alvin are, look at the recruitment, their signing players, their, you know,
04:11fees have been spent all, you know, since this time last year, hasn't it?
04:14And Alvin continue, you know, continue to do so.
04:19What we've spoke about in terms of a sale, you know, it's not a bottomless pit, is it,
04:22when it comes to PSR?
04:23They can't just keep spending fees and spending fees because things are tight.
04:27So, you know, some things will have to go the other way.
04:31They already have.
04:32I mean, think back to Carlos Corbrant and the compensation when, obviously,
04:36Valencia took him back to Spain.
04:37Or think back to the players the club sold, was it last August?
04:41Quite late in the window, Johnny, when Thomas Asante went and, was it,
04:47Tans and Yucouslu, stuff like that.
04:49Other exits, obviously big earners at the end of their deals, you know,
04:56who no longer be on those big salaries.
04:59So, yeah, look, and something else that emerged last season,
05:03the club working pretty tightly with the EFL, weren't they?
05:06You know, just to ensure that everything's going right, really,
05:10I had it explained to me as far as I understand,
05:12just to ensure that the club aren't spending within the, you know,
05:16outside of their means or what they're capable of
05:18or falling the wrong side of these regulations.
05:21So, I wouldn't be concerned.
05:23I'm confident in what the ownership have done on that side of it
05:27and how they operate.
05:29And I think supporters should be.
05:31With regards to the second part of the question,
05:33what else sort of is excluded when it comes to PSR?
05:36You know, Spyro mentioned academy, women's team, sort of facilities.
05:40That's what I'm aware of.
05:41Now, obviously, Bilkel have invested in work on the Hawthorns.
05:45We know they're invested in pitches, training pitches.
05:47You know, look at the women's team.
05:50They've made Javon Hodgett still a full-time head coach
05:53of the women's team, so an investment there.
05:55Others we won't quite know about that won't be as prominent
05:58or headlines, you know, I'm sure likewise with the academy.
06:01So, yeah, those are external and not included in, you know,
06:05PSR, profit and loss.
06:06Another thing I'd quickly mention just finally on this,
06:09talk about the 34 million losses that appeared
06:12in the last set of accounts as it was outlawed to me
06:16and as we reported at the time.
06:17Not all of that 34 million pound figure,
06:22and I don't know the exact specifics, counts towards PSR.
06:25You know, that includes everything spent.
06:27And how I just mentioned there are exceptions to it there.
06:30So it would be hard slash pretty impossible for us
06:34before the next set of accounts to know the exact figures
06:37at the moment.
06:38But I'd expect Albion to be fine when it comes to finances.
06:43And the way they are operating this summer, you know,
06:46they won't push the boat out too much that it costs them.
06:49You know, they'll do it within the means.
06:50And that's where the business will come in, to be honest.
06:54And in a few weeks or a month or six weeks when we're talking potentially
06:58about the sale of a player, then it'll come back to this conversation,
07:01and then it's just up to replenishing the squad,
07:06using the funds wisely.
07:08You know, if a player exits for a good fee,
07:10then using it to perhaps bring another couple in
07:12that can progress the club on.
07:14That's what it's about now.
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