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Board slash loan interest rate

Filed: Tuesday, 5th December 2017
By: Staff Writer

News that the interest rate charged by David Sullivan and David Gold to West Ham United FC has been reduced has been welcomed by fans.

Speaking at last week's meeting with supporters, at which KUMB was represented by deputy Editor Gordon Thrower, vice chair Karren Brady revealed that the 7 per cent interest rate previously charged had effectively been halved since April.

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And that could mean in the region of an extra 1.5million per year being made available to manager David Moyes, instead of going to the owners in additional interest payments.

David Sullivan and David Gold, to whom the club still owes in the region of 45m-50m have been charging West Ham the vastly-inflated interest rate since 2011, costing the club circa 3m-3.5m annually.

However Sullivan and Gold will still be coining it in despite slashing the interest rate charged, with the club still responsible for interest payments worth around 2m per annum as a result.

Speaking in an exclusive interview with KUMB in 2013, David Sullivan insisted that charging interest on the loan was mandatory. " it's not interest free - we're not allowed to," he said when asked to detail the loan.

However Chelsea owner Roman Abramovich and Newcastle United's Mike Ashley - to name but two - have both given interest free loans to their clubs during the same period.

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