WEST Brom chief executive Mark Jenkins has revealed the club has “no more money for wages” in a shocking revelation.
Jenkins left the club in 2016 before returning to his role last month – saying he is “shocked” at the financial situation since coming back.
The Baggies’ CEO added there will be a “significant loss in next year’s accounts” as Premier League relegation looms.
Jenkins told WBA TV: “The annual accounts shows what really has happened over the last 24 months if you look in detail.
“The accounts cover the 2016-17 season which saw us placed tenth in what we must consider a successful season despite a slightly disappointing finish.
“It was the first year of the new TV deal and normally in that situation the club performs well financially.
“We had record turnover, a profit of just under £40m which included the sale of Saido Berahino… but still, £40m in the bank which is a substantial resource.
“But if we look further, the auditors have insisted that I do make note that we are going to have to have a small overdraft in the near future which just goes to emphasise the activities of the year which has followed.
“I want to emphasise that it is a small overdraft but this club has not had an overdraft for over ten years now which makes it new territory for West Bromwich Albion in this era.
“Clearly, it has not been as successful a season. There is going to be a significant loss in next year’s accounts.
“Not to the level of profit recorded in these accounts of course, but it demonstrates how the board have used the resources – and a little bit more besides – investing in the squad and the infrastructure of the stadium.
“We have wages, transfer fees and loan fees running at record levels and yet we find ourselves in this position.
“I’ll be honest I’ve come back and I’m shocked at what I have found in some of the decisions that have been made.
“When I was on the outside looking in, for example, I read the reports about the club operating at the limit of its short term cost control.
“Knowing the business as I did, I thought that was a negotiating position but I’ve come back and can assure you that we are right at our limit on STCC.
“There is no more money for wages.
“I would like to think that the supporters would trust me. They know I have run the club successfully before and they will expect me to do so again.
“I think it will be wise to go back to Jeremy’s principles. But we must change too. What worked eight years ago won’t work now.
“There are new regulations in place for a start. We have to adapt and evolve if we are going to make progress. We have to recognise the changes and evolve.
“I talk about this being a business and I make no apology for that because if you are as strong as a business you will have success on the pitch.”
Speaking of his time away and return to West Brom, Jenkins added: “It’s been painful looking in and seeing the club that I and many, many other people – friends such as Dan Ashworth, Darren Eales – had built up to be an established Premier League club.
“It has all unravelled in the 12 months or more since I’ve been away. I’m determined to get it back to where it should be.”