Kieran Maguire: Gold and Sullivan taking 'millions' out of West Ham as £1bn talks reported
West Ham would likely be one of the first to borrow from a proposed £1billion central Premier League fund.
So says finance guru Kieran Maguire, speaking exclusively to Football Insider about the Hammers’ mounting debt.
The Financial Times reported on 5 October that top clubs have discussed the introduction of a £1bn lending facility to ease cash flow issues.
They put forward that the Premier League should make funds available so clubs are not forced to borrow at high interest rates.
“Covid cost West Ham United £70million and the club is £150m in debt,” co-owner David Sullivan told Hammers News on 27 September.
Maguire claims the Irons could be one of the first in line to borrow at a low rate from the Premier League.
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“This would be appropriate for West Ham,” he told Football Insider correspondent Adam Williams.
“There is reluctance from the owners to put money in. They are pursuing a different model to some other owners.
“If you contrast them to, say, Everton, the owners have extracted millions of pounds in interest charges.
“They are currently charging about 4.25 per cent interest. If the club could borrow at a cheaper rate from the Premier League fund, they would use it.
“Some owners in the Premier League have lent at zero per cent interest, but Gold and Sullivan are not among them.
“For those owners, utilisation of the fund would cost the club more, whereas for West Ham it would cost the club less.”
However, West Ham have spent more than £400m on new players in the last five seasons, as per their accounts, and some of that money has come from the directors.