Kieran Maguire sheds light on £80m issue impacting West Ham takeover
West Ham would have had to pay £80million extra in tax if they had accepted the recent £400m takeover bid.
That is according to finance guru Kieran Maguire, speaking exclusively to Football Insider about the offer first reported by BBC Sport on 21st July.
The bid came from a consortium fronted by ex-Queens Park Rangers chief executive Phillip Beard.
One of the terms of the club’s move to the London Stadium in 2016 was that the current owners are subject to a ‘windfall tax’.
David Gold and David Sullivan must pay a 20 per cent premium if the club is sold for over £300m before 2023.
Maguire explains that this tax was implemented to stop the owners from making a quick buck by selling the club soon after the stadium switch.
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He told Football Insider correspondent Adam Williams: “Gold and Sullivan effectively acquired a stadium that is significantly subsidised by the taxpayer.
“If we take a look at the example of the sale of the Boleyn Ground, that was for £40m. It was then immediately flipped by the buyer for £60m. So somebody made an awful lot of money very, very quickly.
“So the rationale behind the windfall tax was that whoever acquired the rights to the London Stadium has to be seen as a medium-term investor and not necessarily a long-term investor.
“Therefore, by having a tax penalty for a relatively quick sale, it’s a bit like inheritance tax.
“If I give assets to my family and I die within seven years, they end up paying more tax on them.”