Hammers may get access to £1 billion credit facility

Top-flight clubs are reportedly calling on the Premier League to establish a central loan fund of at least £1 billion to allow them to access cheaper loans than those currently being made available to them.

The fund would be of most benefit to clubs outside the Premier League’s big six including Weest Ham who have ended up borrowing at rates of 7% and above to meet immediate cash flow issues.

The report, in the Financial Times, says the idea of a fund has been discussed by clubs and highlights the difficulty some have in accessing cheaper interest rates from the major global banks – especially clubs outside the ‘big six’ .

The finances of the smaller clubs are considered less stable, particularly with the threat of relegation and loss of Premier League centralised revenues, often hanging over their business plans.

The Premier League is in a stronger position to raise funds at a lower interest rate as it can be secured against the leagues broadcast revenue streams.

Premier League clubs lost an estimated £2 billion in revenue last season given the impact of the pandemic. A number of the smaller clubs have had little choice but to accept high-interest finance.

MSD Partners, the investment fund of technology billionaire Michael Dell, has become prominent in the sector and have a portfolio of clubs they loan to including one agreement with Southampton at an annual interest rate of 9%. West Ham has a  credit facility to borrow up to £120m from MSD.

 

About Sean Whetstone

I am Season Ticket Holder in West stand lower at the London Stadium and before that, I used to stand in the Sir Trevor Brooking Lower Row R seat 159 in the Boleyn Ground and in the Eighties I stood on the terraces of the old South Bank. I am a presenter on the West Ham Podcast called MooreThanJustaPodcast.co.uk. A Blogger on WestHamTillIdie.com a member of the West Ham Supporters Advisory Board (SAB), Founder of a Youtube channel called Mr West Ham Football at http://www.youtube.com/MrWestHamFootball, I am also the associate editor here at Claret and Hugh. Life Long singer of bubbles! Come on you Irons! Follow me at @Westhamfootball on twitter