West Brom faces three-way takeover battle with owner Lai Guochuan desperate to sell amid growing fears of Premier League relegation
- West Brom owner Lai Guochuan is desperate to sell, fearing relegation
- There are three interested parties and Guochuan will talk to a preferred bidder
- Guochuan has not yet received an offer meeting its £ 200 million valuation
- Penalties will be imposed if the Baggies are knocked out of the top flight
West Brom is engulfed in a three-way takeover battle as owner Lai Guochuan is eager to sell before the end of the season amid growing fears of relegation.
American-based businessman Mark Campbell, who held talks about buying Sunderland two years ago, would lead one of the consortia with West Brom in hopes of finding a preferred bidder by next week.
Guochuan is desperate to sell but has not yet received an offer that lives up to his £ 200 million valuation and may struggle to recoup the £ 175 million he paid for 88 percent of West Brom’s shares five years ago .
West Brom is engaged in a three-way takeover battle with owner Lai Guochuan who is eager to sell
Guochuan has not yet received an offer from an interested party that lives up to its £ 200 million valuation
The club’s income has been decimated by the Covid-19 pandemic and – as with any other club – they have the prospect of more than a year without receipts.
A very costly relegation to the championship is a major threat. They have been in the bottom three of the Premier League all season and are six points for safety reasons.
Sam Allardyce was brought in last month to replace the fired Slaven Bilic, but a battling 1-1 draw at Liverpool is the only point West Brom has earned so far in his four games.
West Brom had a bad start to the Premier League season and is in danger of being relegated
Guochuan has indicated that he will enter into exclusive negotiations with a preferred bidder next week, with all three parties submitting bids. All offers include penalty clauses that give buyers discounts in the event of relegation – and the club’s value is likely to diminish as that opportunity approaches.
One of the offers would value West Brom at £ 130m if they stay in the Premier League, dropping to £ 105m if they are relegated.
Campbell is a British real estate magnate based in New York. His company Fairway Sports Capital has previously held talks about buying Sunderland without reaching an agreement.