West Ham debt position updated

Reports from the recent bloggers meeting which suggested that West Ham has £50m of debt have been taken slightly out of context so here is an update on the Hammers finances in relation to outstanding debt.

West Ham cleared all external bank debt when they moved to the London Stadium last Summer but the Hammers do have a £50m credit facility from a company called Media rights and funding. The short-term loan secured against the training grounds and shop/stadium leases. This loan acts as an overdraft to help with cash flow for the club.

The Hammers have drawn down £25m so far and will probably have to draw down another £15m before the end of the season. The club pays 6.25% in interest for the money they draw down but they pay all money back including interest at the end of every season and arrange a new credit facility again going forward to the next season.

Outside of the overdraft facility, the club has £45m is shareholder loans dating back to 2011 which are due for repayment in January 2020. The interest on these loans has been reduced to average out at 4.25%.

Financial accounts for last season which should be published early next year are expected to show a record turnover of over £180m with a record wage bill close to £95m.