West Ham’s bank loan of £25m from Barclays – revealed here yesterday (Fri) is in line with the actions of numerous other clubs who have taken out loans this season.
It comes on top of the £30m rights issue from the Hammers shareholders in August to plug a £55m hole in the West Ham finances.
It’s believed the Barclays loan has been guaranteed against the owners’ personal finances given other club assets have already been borrowed against.
West Ham are likely to lose a significant proportion of their £40m ticket and hospitality revenue this season with no return in sight for supporters to the London Stadium.
TV income is down too after earning around £13m less for finishing 16th last season with the burden of a £330m compensation package to Sky and BT and the loss of a £564m Chinese TV deal which is likely to cost each Premier League club around another £16m each in lost TV revenue this season.
Players did defer their wages over the last lockdown but this has since been paid back in full although the wage bill has dropped by around £15m from £115m last season to £100m this season.
The Hammers continue to pay their £3m London Stadium rent regardless of whether supporters are present or not with the public stadium owners making savings from non-employment of stewards and casual security match day staff.
Wonder why they went to a bank when you can get loans from government at 0.5 rates like Tottenham and others have done.
You have to play the game like every other businesses are doing .
because to get a government loan you need assets to borrow against, Spurs borrowed against their stadium so it’s like a mortgagee
Puts what the owners have done to this club into context too.No assets to qualify for a government loan thanks to them selling off the Boleyn Ground.It still hurts for most fans and these are the repercussions right here in black and white.
Players have been paid in full.
Players scheme #PlayersTogether was a con.
Standard staff losing their jobs whilst players earning millions over a year and tax minimal taxes due to PSC arrangements.
Disgraceful.
If they are borrowing £25m to plug gaps in the finances, what is the expected tranfer kitty come the January window, if anything?