West Bromwich Albion, a renowned football club, has successfully reduced its annual losses by nearly half. This significant reduction is a strategic move to strengthen the club's aim of complying with the EFL's profit and sustainability (P&S) rules.
In its latest financial report, West Bromwich Albion Group Limited - the part of the club that must comply with these regulations - posted an operating loss of £17m for the 12 months up to June 2025. This figure is down from £31m in losses reported in the previous year.
Under P&S rules, Championship clubs are allowed to lose a maximum of £39m over a rolling three-year period. Despite posting a combined loss of £55.6m since July 2022, West Brom's figure is considerably lower for P&S purposes due to exemptions on spending related to infrastructure development, their academy and women’s team.
Club investments and future compliance
The Baggies have made substantial investments in their training ground located in Walsall and installed nearly 4,000 safe-standing seats at The Hawthorns stadium. These developments contribute towards reducing their calculated losses under P&S rules. Given these circumstances, it is understood that West Brom are confident about fully complying with P&S regulations moving forward.
The financial report also revealed that overall staff costs decreased from £42.9m to £37.1m due largely to several high-earning players either leaving or being sold off by the club. Player sales totalled around £8.2m which included academy product goalkeeper Alex Palmer who was sold off to Ipswich Town FC as well as striker Brandon Thomas-Asante who was transferred over multiple years' time span.
However, last summer’s sales involving homegrown players Tom Fellows and Caleb Taylor to Southampton and Millwall respectively, along with the £10m departure of Torbjorn Heggem to Bologna, will be reflected in next year's accounts.
Revenue increase and gate receipts
The club’s revenue increased from £28.2m to £30.4m, largely driven by a new broadcasting deal with Sky Sports for televising more EFL matches. However, gate receipts fell by £300,000 to £6.8m despite an increase in average attendance. This drop was attributed to higher revenue received the previous year due to a sold-out home FA Cup fourth-round tie with neighbouring Wolves.
As the EFL continues discussions on implementing a Squad Cost Ratio (SCR) model in the Championship from next season - which caps spending on player and manager wages, transfer fees and agents' fees as a percentage of club's revenue - West Brom is understood to be supportive of this move towards SCR in the second tier.
West Bromwich Albion has made significant strides towards financial stability while complying with P&S rules through strategic investments and cost reductions. The club's future looks promising as it supports innovative models like SCR for sustainable operations.
