Karren Brady, West Ham’s vice chairman was at parliament today to explain that the club must pay off their bank debt before they move into their new Olympic home in Stratford. That means the Hammers will have to clear around £35m worth of debt before the move takes place.
Brady insists that West Ham United have not been given any favours or allowed to use the iconic stadium on the cheap.
The east London team has debts amounting to £70million, half of which is secured on the Boleyn Ground. Before the club moves into their new home in 2016, the Upton Park stadium will be sold and debts cleared.
The Hammers’ vice chairman was speaking at the House of Lords’ committee on Olympic and Paralympic legacy today and made it clear that the tax payers were getting good value for money and that the stadium has not been handed to West Ham on the cheap.
Brady is also wary that the Boleyn ground will need to be sold soon in order to ease the financial burden on owners David Gold and David Sullivan.
“We did have a tentative deal to sell Upton Park but that fell away,” she said earlier today. “We hope the money generated from the sale of Upton Park will be enough to fulfil our commitment and to help pay off some of our bank debt.
“When we bought the club we took on more than £100million of debt that was guaranteed on the ground. We have to pay off all our bank debt to move, we can’t take the debt with us.
“If there is any excess it will meet some of that debt but I don’t expect there will be.”
West Ham United seems optimistic in their ability to handle the situation and manager Sam Allardyce has been backed notably well with the signings so far. We hope that the Hammers’ ability to repay its debt doesn’t disrupt the start of the season or any new plans Allardyce may have for signing new talent.
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