One of Daniel Křetínský’s earliest financial tasks could be to review the £124m Rights & Media Funding (RMF) facility, currently the only active charge registered against West Ham United.
The loan is secured against freehold land and buildings, almost certainly including the Rush Green training complex and Chadwell Heath academy site, given the nature of the fixed charges.
West Ham’s £124m Loan Could Face Early Review
RMF loans typically carry interest rates of between 6% and 10%, run for 12 to 36 months, and West Ham’s facility is expected to mature in 2030.
While they offer fast liquidity, they also reduce future cash flow and are generally more expensive than traditional bank lending.
Championship Football Changes Financial Priorities
With the club now operating on Championship-level broadcast income and facing a reduced need for transfer financing, it would be surprising if Křetínský did not pivot towards more conventional bank funding.
The Czech investor is highly experienced in using bank loans across his wider business empire, from Royal Mail to EPH, and is likely to apply the same structured, bank-backed approach at West Ham.
Kretinsky Could Introduce More Traditional Funding Model
A move away from expensive specialist lending and towards conventional banking facilities would be viewed as a positive step in terms of long-term financial management.
It could also improve future cash flow and reduce the cost of servicing debt at a time when the club is adjusting to life outside the Premier League.
Reasons For Optimism Despite Recent Losses
Overall, it paints a much more positive picture and, hopefully, is a sign that last year’s report and accounts will prove to be a one-off rather than something we see repeated in the future.
If we make so of the sales that are rumored why would we need a loan facility of this size?