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Rights issue wipes out owner interest payments

West Ham principle shareholders David Sullivan and David Gold deferred £1.84m of interest due last year on outstanding shareholder loans in the wake of COVID.

Before the global pandemic stuck in August 2019 Sullivan and Gold received a combined £956,250 in partial payment of interest, with David Gold receiving a £1m payment of loan capital repayment.

David Sullivan made a £3m short term loan to West Ham in December 2019 which was repaid seven days later on 6th January with interest accruing for that period at 4.25%.

The balance of outstanding shareholder loans now stands at £44m from loans originally made to the club between 2011 and 2014 with a new repayment set in the newly published financial accounts of 1st January 2024.

A further £9.5m loaned from a company controlled by Tripp Smith is also outstanding but attracts no interest and is only repayable on the sale of the club.

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Gold and Sullivan have received just under £18m in interest payments over the past ten years after personally loaning the club £52.5m between 2011 and 2014.

Last August Sullivan and Gold put £26m back in the club in the form of a share rights issue buying shares in the club they already owned 86.6%.

The other £4m came from other shareholders including Tripp Smith, Terry Brown and Daniel Harris who own the remaining 13.4% of the West Ham shares.

The rights issue is not repayable in any way allowed the current shareholders to inject cash into the club by buying shares in a company they already owned.

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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