West Brom have opted not to appeal against their two-point deduction this season despite disagreeing with the English Football League's sanction "in several important respects."
The Baggies were docked two points in April after being found to have breached the EFL's financial rules, leaving them six points above the Championship relegation zone with two matches to play.
The EFL's Club Financial Reporting Unit (CFRU) alleged the club had exceeded the permitted losses of £39 million over the three-year period up to the end of the 2024-25 season.
West Brom also said they remained "frustrated by the timing of this sanction" after receiving the CFRU's written reasons on May 8, six days after the season ended.
A club statement read: "The club disagrees with the [review panel's] findings in several important respects.
"In particular, the club remains strongly of the view that having accepted its position on community development expenditure (CDE) in 2024, issuing a decision letter at that time confirming compliance, the CFRU was not entitled to change its approach in 2025.
"The 2024 decision was relied upon by the club in its future planning and expenditure and the club considers it grossly unfair for the CFRU to retrospectively disallow CDE that had previously been permitted.
"Without that change of approach, the club would not have breached profitability and sustainability rules."
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West Brom said the £1.9 million breach was "the smallest ever recorded across the EFL Championship and the Premier League."
"The club is proud of the work it conducted to reduce what was once a projected P&S (Profitability and Sustainability) breach of around £20 million, but remains disappointed its efforts -- which included open and urgent cooperation with the regulatory process -- were not recognised by the CFRU," the club said.
"However, the club has decided not to appeal. The club's performance on the pitch this season meant a two-point deduction did not affect its final standing and pursuing an appeal would serve no practical purpose for the club or its supporters.
"It is in the club's best interests to close this chapter and focus on the future."
West Brom added they were confident their losses for this season would be "well below the upper loss threshold."
The Baggies secured the point they needed to avoid relegation following the sanction by drawing 0-0 at promoted Ipswich at the end of last month and finished the season in 21st place, four points above the relegation zone.
