By Kieran Maguire

12th Mar, 2021 | 9:00pm

Maguire: This is the truth about 'glorified' £120m West Ham announcement

West Ham have taken out a £120million loan but the headline figure does not tell the full story – they might not need to make use of the full amount.

That is according to finance guru and new Football Insider columnist Kieran Maguire, speaking exclusively after West Ham released their financial report for the 2019-20 financial year.

Detailed in the report is the £120m loan the club have taken out with private lender MSD Holdings to account for a £65.3m net loss.

But Maguire explains that the £120m figure is deceptive as West Ham can adjust their borrowings as their financial picture progresses.

With Champions League football in 2020-21 a realistic possibility the actual figure may turn out to be much more modest, the spreadsheet expert explains.

He told Football Insider correspondent Adam Williams: “These loans are simply unavoidable. Bills still need to be paid and their wages are substantial. They are certainly one of the biggest payers outside the ‘big six.’ Therefore, it’s a logical decision to make.

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“What West Ham have done is essentially consolidated all their existing loans from third parties. They owed money to an organisation called Rights and Media, they had a loan from Barclays and they put it all into one pot. It’s not a £120m loan, it’s a £120m loan facility.

“Effectively, it’s like a glorified overdraft in that they can draw down on it as and when they need to do so.

“Should they qualify for the Champions League and they get a large amount of money over the summer, they can potentially reduce that loan and make it a fairly flexible arrangement.

“They haven’t released the interest rate but Southampton [also borrowing with MSD] are paying 9.14 per cent, which caused some people to raise eyebrows.

“They are paying 4.5 per cent to David Gold and David Sullivan on their loans. I’d expect their MSD loan to be at a higher rate.”

Many senior figures at West Ham – including Karen Brady and David Moyes – have taken wage deferrals to help the club amid the pandemic.

The club became one of the only Premier League teams whose players also agreed to deferrals in April 2020.

In other news, West Ham are one of a number teams interested in signing Slavia Prague striker Jan Kuchta.