28 Jul 2021 14:29:45
The bid to buy the club is apparently £500m from PAI Capital who have supposedly got serious money, they would be looking at buying the stadium as well, it's only what I've read?

1.) 28 Jul 2021
28 Jul 2021 16:56:20
I think it could all be a ruse and then when no new players are brought in they will use potential of selling as the excuse and i'm sick of hearing about lingaard. Move on from him. We need a damn striker.

2.) 29 Jul 2021
29 Jul 2021 09:27:20
West Ham’ deal for the Olympic Stadium, could make the DGS very rich indeed. However, a sale of the club isn’t necessarily in the best financial interest for DGS at this point in time. When the Contract for the Olympic Stadium was being drawn up Legacy chiefs, who negotiated the contract with West Ham, were sufficiently concerned that Sullivan and Gold might make a quick fortune by selling up soon after relocating to the Olympic stadium that they incorporated a provision to recoup a percentage of any sale price to the public purse. DGS publicly say they have no plans to sell, but let’s face it, everyone has a price but provision stipulates that any sale within a certain time period, over a certain price would mean DGS don’t receive as much of the sale price themselves.

I will try to explain in Lehman’s Terms the key points of the contract.

In simplified terms, West Ham’s 99-year lease for the Olympic Stadium contains a clause stipulating that a percentage of the proceeds of any sale of the club should go back to the public purse, and that any sale that values the club at £125m or more triggers a repayment of somewhere between 7.5 per cent and 30 per cent, with more punitive rates the higher the price tag and if the deal takes place before summer 2021.

A sale after summer 2026 would not trigger a repayment at all, DGS would get all the sale value (minus the obvious) .

However, it is worth mentioning, the percentage amount paid to the public purse is applied not to the value of the deal but to an “adjusted consideration”, offset against the club’s debt. This means that if there are substantial debts to pay off first, the sale value would need to significantly exceed £125m before the repayment clause was activated and the taxpayer saw any return. The club’s debt (last I remember), owed in the main to DGS, stood at approx. £35m when accounts were last filed. Using that figure, if West Ham were sold today it would take an offer of more than £160m before any repayment was triggered.

Given that DGS have apparently just rejected a £500m offer from PAI Capital (amount mentioned above), if DGS did sell, they’d lose between £23.8-102m (split by ownership percentages) in repayments to the public purse. If they wait until the summer of 2026, they would receive practically the full sale price (split by ownership percentages) .

That is my understanding of matters. Whilst I would love to see West Ham bought by some mega wealthy consortium, I am unsure DGS would consider any offer all the time they would have to reimburse the public purse any amount of the sale price.