The difference a debt makes

  • by Staff Writer
  • Thursday, 11th January 2018

Everton part-owner Farhad Moshiri has invested ?150million into the Merseyside club - in stark contrast to West Ham United's Board.

It has been revealed that the 62-year-old businessman cleared the club's outstanding debts in one fell swoop, saving Everton - who have already made one significant signing during the current transfer window - more than ?3million per year in interest payments.

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And that is in stark contrast to West Ham's co-chairmen David Sullivan and David Gold, who inherited a debt in the region of ?100million when taking control of West Ham eight years ago this month that still remains in place.

West Ham's huge debt has been maintained since 2010 with Sullivan and Gold charging seven per cent interest per year on their loan to the club (a figure in the region of ?50million); that equates to circa ?3.5million interest per annum.

The outstanding debt was brought 'in-house' by the Board prior to moving to Stratford, as one of the conditions of sale relating to the Boleyn Ground - a former asset of West Ham United's that was previously used as a guarantee against bank loans.

And even with the Board's interest rate being halved, as claimed by vice chair Karren Brady during a meeting involving KUMB last month, West Ham's owners are still charging the club in the region of ?1.75million per year interest on their loan.

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Moshiri - who was previously a major shareholder in Arsenal, in conjunction with former business partner Alisher Usmanov - became Everton's majority shareholder in 2016, purchasing 49 per cent of the club (as Blue Heaven Holdings Limited) after selling his stake in the Gunners to Usmanov.

However Moshiri was the subject of a BBC Panorama documentary in December, during which it was claimed that the money he invested in the Toffees was a gift from Usmanov.

Everton - now managed by former Hammers boss Sam Allardyce - have already spent ?27million during this transfer window on Turkish striker Cenk Tosun, although they recouped ?15million this week by selling Ross Barkley to Chelsea.

West Ham are yet to sign a single player since the transfer window re-opened on 1 January, but have recalled rookies Reece Burke, Josh Cullen and Reece Oxford from loan spells in order to boost David Moyes' depleted squad.

Additionally, Diafra Sakho is reported to have held preliminary talks with Crystal Palace whilst Javier Hernandez is being tipped to leave the club less than six months after moving to London.

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