Investment cash will cover debts

Suggestions that Czech billionaire Daniel Kretinsky potential injection of cash will be given to David Moyes to spend on transfers are wide of the mark.

Reports have suggested Kretinsky’s investment will give West Ham money to spend on players in the January transfer window.

Mirror journalist Darren Lewis talking on Sky Sports Super Sunday Matchday “What it does, it provides the ability for West Ham to go into a transfer window where they are going to look at quality, rather than making up numbers, with a degree of confidence. He (Kretinsky) is a guy who is very canny with his investments, he’s got other business interests as well outside of football.”

However, in reality any injection of cash will be used to plug the financial black hole in the accounts left by the pandemic as well as paying off existing debts as the first priority.

Kretinsky is said to be in talks for a 27 per cent stake of West Ham for around £150m valuing the  Hammers around £555m.  It is thought the current shareholders will issue new shares to dilute their current shareholding with some minority shareholders selling some of their existing shares.

Earlier this year West Ham announced a loss of £65m for last season which followed a £27m loss for the season before that.

The Hammers also arranged a new five year borrowing facility of £120m from MSD holdings with a £30m rights issue to inject cash into the club.

Ultimately large losses need an injection of capital to balance the books and this what an investment will do.

Once the club is financially stable and reduced its debts it will be able to invest more in players but January is likely to come too soon for that.