The cost of selling up West Ham
Under the terms of the London Stadium concessionaire agreement signed in March 2013, they must pay the stadium owners a share premium if they cash out with the first ten years.
If West Ham is sold before March 2018 the following calculation are made. If the sale price is £125m or less then no tax is due, 7.5% tax is charged between £125m & £150m, 10% tax between £150-£200m & 20% tax between £200-£300m with anything above £300m meaning 30% tax.
The owners are able to deduct their shareholder loan balance of around £60m before the calculations are made. These shareholder loans are due for repayment on the 1st January 202o.
Mike Ashkey is said to value Newcastle at £380m but has yet to receive a proper bid so far. In the current market and with the toxic nature of the West Ham brand at the moment I think they would be lucky to get £400m if it went on the market today.
Selling for £400m before March this year would cost them nearly £39m in windfall tax
If West Ham is sold after March 2018 but before March 2023 the calculation slightly differs.
Again £125m or less no tax is due, 7.5% tax between £125m & £150m, 10% tax between £150-£200m & 12.5% tax between £200-£300m with anything above £300m costing 20% tax.
A £400m sale after March 2018 before January 2020 would cost them just over £27m in a windfall tax.
A £400m sale after January 2020 before March 2023 would cost them just over £39m in a windfall tax.
A £400m sale after March 2023 will cost them no windfall tax.