Championship club secures MSD Holdings loan to ease cashflow during takeover

Sunderland's rivals in the Championship have secured a loan to ease cashflow during a takeover process - with an entity familiar to Sunderland fans involved in the deal.

West Brom have secured additional funds from United States private equity firm MSD Holdings to see the club through until a takeover is complete.

The Baggies secured a £20million loan from MSD Holdings in December last year and have now taken an additional loan 11 months later.

Four-and-a-half years ago, individuals involved with MSD Holdings engaged in talks over purchasing Sunderland when the club was owned by Madrox.

MSD Holdings are an investment group set up to manage the wealth of American billionaire businessman Michael Dell, who was touted as a potential minority investor in a deal to buy Sunderland while Stewart Donald was still the club’s chairman in 2019.

That deal was led by MSD employees Glenn Fuhrmann, Robert Platek and John Phelan – whose company FPP agreed a £9million loan with Donald’s holding company, Madrox, after takeover talks stalled.

Albion's parent company, Guochuan Lai's West Bromwich Albion Group, borrowed £20million from MSD Holdings last year and took on an interest rate of 9.75 per cent plus daily non-cumulative compounded SONIA rate, which took interest to around 14 per cent.

The four-year term has not been extended of that loan repayment period has now been extended with West Brom in the middle of a takeover process, though the figure of the new loan is not yet public knowledge.

Local reports have claimed that the loan shouldn't have any bearing on the club's January transfer business but that it has been deemed necessary to support the club's general business operations and cash flow.

A West Brom club statement read: "The supplementary borrowing will provide the club with increased working capital as Chairman Guochuan Lai continues to engage with parties interested in purchasing a majority shareholding in West Bromwich Albion."

The Baggies were relegated from the Premier League in 2021 and finished 10th in the Championship the following season, and then ninth at the end of 2022-23.

MSD UK Holdings also finalised an investment agreement with Premier League club Southampton in 2020.