Kieran Maguire: West Ham chiefs could sanction £120m payout after Sullivan reveal
West Ham may use a portion of Daniel Kretinsky’s investment to begin to pay off their £120million debt bill with MSD Holdings.
That is the view of finance expert Kieran Maguire, speaking exclusively to Football Insider about the money the Irons owe to creditors.
Czech billionaire Kretinsky now owns 27 per cent of West Ham after a deal was completed on 10 November.
Fellow co-owners David Gold and David Sullivan took out a £120m loan from private lender MSD Holdings at the outset of the pandemic.
West Ham, who posted a £65m loss in their last annual report, took out the loan to alleviate the cash flow issues caused by the pandemic.
Sullivan told Hammers News in September that their overall debt is in excess of £150m.
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Maguire claims that West Ham may “prioritise” paying off the loan from MSD Holdings following Kretinsky’s investment.
“I believe there will be some capital coming into the club,” he told Football Insider correspondent Adam Williams.
“But the remainder of it will go towards buying shares from Gold and Sullivan.
“So not 100 per cent of the investment is going to the club. I think they would want to prioritise paying the loans from MSD.
“But we don’t know the terms of the loan. It could be that there are early repayment penalties to take into consideration.
“So we have to be a little bit cautious with regards to that. But it will give them some scope for investment in January.”