West Ham appear to have embarked on something of a credit spree, securing a second lending facility just weeks after arranging one for up to £145 million.
In a move described as “mysterious” by football finance expert Kieran Maguire, the Hammers now seem to be borrowing heavily against land and buildings owned by the club.
Documents published at Companies House today reveal West Ham have registered a charge to borrow more money secured against property at Chadwell Heath, Rush Green, Little Heath, and the Beckton clubhouse. The funds are coming from Rights and Media Funding Limited and represent a multi-million-pound credit facility.
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This follows a similar arrangement with Barclays Bank last month, where borrowing was secured against Premier League basic awards and potential parachute payments.
The amount of the new borrowing has not been disclosed, but Maguire suggested the deal raises eyebrows:
“West Ham borrow from Rights and Media Funding Limited, a company with no employees, hardly any assets apart from loans to companies, and which owes about £290m itself to creditors.”
From a PR standpoint, it’s hardly a good look for West Ham—especially when the board of directors includes three billionaires.
With the first facility allowing borrowing of up to £145 million mortgaged against future income, the question remains: why does the club now need to seek even more millions?