(Yicai) March 15 -- Palm Eco-Town Development has made provisions for losses of as much as CNY400 million (USD55.5 million) resulting from the sale of the West Bromwich Albion Football Club, in which it is a stakeholder, the Chinese landscape design company said yesterday.

The consortium in which Palm Eco-Town holds a stake has found a buyer for its entire 87.8 percent equity in the football team, Palm Eco-Town said, citing a letter it received from the consortium on March 13. The sale price is expected to be up to GBP28 million (USD35.6 million). Legal fees and transaction fees will still need to be deducted, it added.

Back in 2016, Palm Eco-Town invested CNY450 million (USD62.5 million) in the consortium for a 20 percent stake, according to a previous announcement. At the time, West Bromwich was playing in the Premier League. But the following season, the football club was relegated to the EFL championship competition, which is the second level of the English football league system, where it has mostly remained ever since.

At the current sale price, Guangzhou-based Palm Eco-Town stands to lose between CNY300 million and CNY400 million, or between 67 percent and 89 percent, of its investment.

As a result, Palm Eco-Town has revised upward its previous estimate for losses in 2023 to between CNY700 million (USD97.2 million) and CNY880 million from the previous forecast of between CNY400 million and CNY520 million, it said yesterday.

Editor: Kim Taylor