West Ham will need to pay back £25m next month that it borrowed in loans from Media Rights and Funding last August.
The latest published financial accounts confirm the club borrowed £6m on 15th August later borrowing a further £19m 3 days later on 18th August. The money borrowed was secured against the training grounds plus the shop and stadium leases to help fund cash flow last year but it must be paid in full before the end of July.
The ambitious transfer plans under Manuel Pellegrini will see a further and much larger strain on the club’s cash flow position this summer and we shouldn’t be surprised if West Ham enters yet another short-term loan with Media Rights and Funding secured against club assets for a far greater amount to plug the gap in any shortfall in cash.
Media Rights and Funding are thought to be ultimately backed by Michael Tabor, who once tried to buy the Hammers. The 76-year-old was born in Newham and educated at East Ham Grammar school. According to a book called Football’s Secret Trade, Tabor has loaned considerable sums to West Ham as well as Everton, Southampton, Fulham and Reading over the years through the Vibrac Corporation based in the British Virgin Islands.
This sounds like the club just ‘refreshing’ a short term loan arrangement which seems to be used to smooth peaks and troughs in cash flow throughput the year. It would probably be cash flow neutral.
The real concern on loans would be any move from the directors to withdraw more of their own money instead of investing in the playing staff. Obviously it’s their money and can do what they like with it, but I’m sure the messaging around any such move would not be good.
You’ll be hard pressed to find another board who are as adept at portraying the plucky down to the bare bones, financial constraints card, than our owners. The deals they pull off are remarkable!
Any chance of an article on how much our commercial revenue streams have grown since Brady took the helm. You’ll be staggered, it is Phenomenal
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