West Brom owner Guochuan Lai has stated he is unable to settle a club debt due to restrictions in place by the Chinese government, the Express & Star report.

The £4.1m debt dates back to West Brom's former ownership under Jeremy Peace, with Lai having inherited the loan following his takeover in 2016.

In the time since The Baggies have been relegated from the Premier League and that has led to a restriction on finances and a reduction in the player and staff budget.

That could be a factor behind Lai's failure to repay the loan in the three years since, but in response to Chief Executive Mark Jenkins' request for the payment, Lai stated that he is unable to due to government restrictions.

In particular, Lai points to the fact that the Chinese government is currently restricting sports related investments, which has been in place since 2017.

It is bad news for West Brom, as the debt they're saddled with is accruing interest - having increased by £400,000 since it was taken out in 2014.

The Verdict

It may appear to be an odd reasoning for failing to settle a debt but judging by Lai's investments so far, or lack thereof, what he is saying is likely true and therefore there is not a lot he or the club can do to clear the debt.

This could have long-term significance, if Lai is unable to invest further then it is not possible for him to be the owner of a Championship club, particularly one of West Brom's stature and ambition, which is to be in the Premier League.

Another negative to come from this is a possible break down in the relationship between Lai and Jenkins.

It is vital they trust and help one another if West Brom are to move in a positive direction.

If Jenkins becomes frustrated at the lack of action from Lai then he could find his job untenable.