Lai keen to keep books balanced at Hawthorns
YOU only need to glance down the road to Wolves to better appreciate Guochuan Lai’s steady tenure at West Bromwich Albion.
Shareholders and fans alike have expressed alarm that Lai is not throwing around tens of millions to take the Baggies to ‘the next level’ after a top-ten Premier League finish last term.
Albion have only splashed out on three transfer fees – for Nacer Chadli, Allan Nyom and Jake Livermore – since Lai’s takeover was announced last August.
The latter, a £10 million acquisition from Hull in January, is the only player signed in 2017.
At Wolves, Fosun International have bankrolled a multitude of signings, including the £13 million clubrecord purchase of Portuguese attacker Helder Costa.
Fosun, led by super-rich Chinese businessman Guo Guanchang, forked out over £40 million on players last term, but look where it got them – 15th in the Championship after a brief relegation scrap that ultimately cost two managers their jobs.
But have Fosun spent beyond their means? Something Lai – in keeping with his prudent predecessor Jeremy Peace – has no intention of doing.
And might the money tap at Molineux suddenly get switched off?
The Wall Street Journal reported last week how Fosun was under investigation as China’s banking regulator conducts sweeping checks into the borrowings of five of companies.
There is nothing to suggest any wrongdoing on the part of Fosun, but the probe will inevitably unsettle those connected to Wolves.
The China Banking Regulatory Commission is asking lenders to examine loans made to Fosun and other firms under the spotlight.
Property giant Dalian Wanda Group, a firm linked with taking over Albion last summer, is another of the companies being investigated.
The investigation comes as China looks to limit the money leaving its shores, with domestic debts mounting up, and could yet extend to other Chinese firms and investors with business interests in the UK.
This clampdown will have farreaching implications for Chinese its biggest football club owners in England and elsewhere, but it’s not likely to impact on Lai or Albion. Lai, who paid £175 million for Peace’s 88 per cent controlling stake, has “no wish to change the club’s ethos or embark on an unsustainable spending spree”.
He wants to be “a good owner and to invest in this club for the long term.”
He’s not about quick fixes and short-term highs because, as is only natural, lows will always follow.
To hit the top ten and consolidate was his aim from the outset and Lai is not about to destabilise the club or any of his other business interests in pursuit of a fanciful goal beyond that.
He could plough in millions of his own money (and might yet), but still not see the Baggies close the gap on the top seven.
With only 15 senior professionals at the club, Albion desperately need new players this summer and boss Tony Pulis will have a club-record sum of money, in the region of £40 million, to spend.
That should be enough to extend to four or five decent players with two domestic loans as further options to strengthen the squad.
It’s all about calculated risk and throwing tens of millions at the club is not a gamble Lai appears ready to take. A gamble that could jeopardise his and the club’s sound financial footing in the process.
It’s not extravagant or exuberant in any way, but Lai’s conservative approach will balance the books and ensure China’s financial investigators are not banging on Albion’s door any time soon.
Lai is not about quick fixes and short-term highs because, as is natural, lows will always follow