The sale of West Ham United’s Boleyn Ground will put the club on line to become free of hard debt within the next two to three years.
And that will ensure that owners David Gold and David Sullivan will have delivered on their mission statement of putting the club back on its feet.
The pair took over in 2010 and Sullivan said after a refinancing plan had been put in place that they were confident of clearing the £110 million debts left behind by the Icelandic’s.
ClaretandHugh has learned exclusively the Hammers currently have hard debt (monies owed to the Banks) of around £40 million.
However, with the usual yearly repayment of around £5 million and an injection of up to £20 million from the Boleyn funds, the club will be close to clearing up the £110 financial mess Gold and Sullivan inherited.
The club will be left with ‘soft debt’ (shareholders’ loans) but neither owner is likely to call that in, thus leaving the club in a healthy position.
A source told ClaretandHugh exclusively: “The sale of the Boleyn splits opinion but there’s no question that it eases the club’s position considerably and will free up money to be used on the team over the next two or three years.”
Great news-they’ve had to make so hard, unpopular decisions!
Let’s hope WH stay up & move forward over the next few years!
COYI!
The latest accounts suggested our debts were up to circa £110m what with some ‘payday loans’. I presume these were short term loans that have been paid off.
30 odd million of the debt was soft debt. – loans owed to Gold and Sullivan which they won’t call in. There was another £40m which will be reduced to around £15m by yearly payment of £5m and the Boleyn sale input. The Vibrac loan is repaid from Sky money