Football League clubs have to submit their annual accounts for the previous financial year by December 31. In March, West Brom reported an operating loss of £17m for their last financial year. That was £31m down from the previous financial accounts. Their overall losses since July 2022 are £55.6m, which exceeds the permitted amount of a maximum £39m over the three-year reporting period.
The EFL’s statement read: “The report alleged that the club had exceeded the upper loss threshold of £39m over the three-year period ending in the 2024-25 season and recommended a two-point deduction in line with EFL sanctioning guidelines. The club denied the allegations.
“Following a hearing on 22 and 23 April, and having considered the compliance report in full alongside the club’s responses, the CFRP determined that the club’s losses did exceed the upper loss threshold and imposed a two-point deduction, effective immediately.
“The sporting sanction has been applied to the Championship table for the 2025-26 season. The club may appeal the decision within 14 days of receipt of the full written reasons, as set out in appendix 6 of the regulations. If an appeal is lodged, the rules provide that it shall be heard within 28 days of submission.”
The EFL declined to comment on specifics before the written reasons are published, but it is understood there could be other factors involved in the breach.
After the visit of Ipswich this weekend, Albion face Wednesday in their final match of the season on May 2.