Football finance expert Kieran Maguire has said that West Ham United would be one of the first teams to use the £1bn lending facility which could be available to Premier League clubs in the future.
The Lowdown: Pandemic hits hard
The global pandemic has hit hard across the world, and football is no exception.
Clubs across the world have lost millions due to loss of matchday revenue. David Sullivan has confirmed that the pandemic has cost West Ham £70m and the club are now £150m in debt (Hammers News). Given the problems that many clubs have faced, there have reports that a £1bn credit line could be available to ease cash flow issues (Financial Times).
The Latest: Maguire makes claim
Speaking to Football Insider, Maguire has made a claim with regard to GSB and the lending facility. He said:
“This would be appropriate for West Ham.
“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.”
The Verdict: New owners on the card?
GSB are far from popular with many West Ham supporters (via The Evening Standard), and this news is unlikely to improve their relationship with the Irons’ fanbase. Many fans believe that the club should be run in a better way, and reports that the Hammers would be eager to take advantage of more loans are hardly indicative of them being run efficiently.
Would you want West Ham to use the credit line?
In recent weeks and months, it has emerged that PAI Capital are eager to buy the club from the current owners (via The Times), but so far their offers have been rejected. Many supporters will undoubtedly be eager to get rid of those now in charge, and if that comes to fruition, maybe this line of credit will not be needed for West Ham.
In other news, West Ham fans love this Declan Rice news.
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