Financial accounts for last season are expected to show that primary shareholders David Sullivan and David Gold have deferred the payback of their shareholder loans.
Last year’s West Ham company accounts indicated that £45m was due to be paid back on 1st January 2020 but Claret and Hugh understands the payback of those unsecured loans will be deferred again.
Gold and Sullivan invested a total of £52.2m in shareholder loans to the club between 2011-2014. No additional shareholder loans have been made in the last four years. (2014=£3.5m 2013=£10.5m 2012=£35.2m 2011=£3m )
In August 2016 Gold and Sullivan were repaid £4.2m of their Shareholder loans plus a further £2.2m in interest
A further £10m of interest was paid back to Gold and Sullivan on 18th August 2017.
The interest on the remaining balance has reduced from 7% to 4% in 2017.
On 29th August 2018 a further £4.6m of interest was paid back to the owners.
As far as I can see they have invested around £85m in equity (as opposed to loans) from which you have to knock off the £30m they received from selling UP – if you accept that they didn’t profit from the immediate selling on. So that’s about £50m to actually acquire West Ham.
The rest is loans to a massively cash generative business which they control. Obviously these deferred loans will continue to attract rolled up interest – ie interest on interest – so no great hardship.Even if we get relegated the parachute tv payments will ensure that the loan repayments can be extracted, should they so choose.
Our saviours, God bless ’em.
With that kind of risk free interest, why would you pull your money out !
Not a bad interest rate
You’re lucky to get 0.5% with an investment with a commercial bank
I’d willingly empty my Piggy Bank if they’d give me 4% (let alone 7%! 😳) – I’d did mention that this was not a good time to take out their £45 million but was shot down in flames at the time – remember that? 🤨
Confirms the old adage Money makes Money