West Ham United may need to take on fresh loans to fund transfers if Daniel Kretinsky’s money continues to be tied up in Russia, further dealing a huge blow to the potential takeover of the east London club.
The Lowdown: Recent developments
Kreintsky acquired a 27% stake in the Irons for approximately £180m last November. This deal was completed with the intention of a full takeover in 2023, following the expiration of a windfall tax clause.
However, a West Ham source has now informed Football Insider that sanctions on Russian business has meant that the Czech businessman is unable to access vast amounts of his money. As a result, the Hammers’ summer transfer plans are now in jeopardy.
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The Latest: Maguire’s claim…
Football finance guru Kieran Maguire has suggested that Kretinsky could use private loans as a temporary measure to fund any transfer activity this summer.
Speaking with Football Insider, he claimed: “The aim of West Ham’s owners historically is that they’ve been relatively self-sufficient in the transfer market.
“If Kretinsky was planning to put on the afterburners in the transfer market, this could delay things a bit.
“But 2023-24 is still a few transfer windows away and the geopolitical situation will likely have changed by then. Instead of increasing equity investment, the money is likely to come from loans.
“Individual investors can still spend as much as they choose, but it would come into the club through debt.”
The Verdict: Could be a big blow
If Kreintsky is reluctant to take on new loans to fund his stake in the club, this could prove to be a huge blow for everyone involved with the Hammers.
West Ham posted a pre-tax loss of £26.9m in their last set of accounts, so further financial burden will not reckon well with the Premier League.
Whilst transfers may be affected more imminently, the long-term proposition of a full club takeover could now be in jeopardy. Therefore, West Ham must do all that they can to sort out the situation as soon as feasibly possible.
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