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West Ham reported to be raising funds against next season's TV money

Football News 24/7
Accordng to reports in the Daily Mail, West Ham have reached an agreement with an offshore lending company in the British Virgin Islands to borrow all £60million of their next season's Premier League television money - this assumes the Hammers stay in the Premier League. The later seems most likely.

The deal with the Vibrac Corporation was sealed six months ago on September 10, and the associated paperwork, which has been filed at Companies House, shows Vibrac have effectively become a 'payday loan' firm for the Hammers to help them manage their debts, which currently stand at a net £70m.  

If West Ham retain their Premier League status as expected, their income from Premier League TV cash alone will be at least £60m in the 2013-14 season.

That is the maximum sum West Ham will be able to have advanced to them from Vibrac once safety is a mathematical certainty. 

The maximum sum West Ham could have drawn so far on the deal is £16m, which is the amount they are guaranteed to get from the Premier League next season in 'parachute' money, even if relegated this season.

Arguably the most extraordinary part of the Vibrac agreement is it illustrates that despite all the riches available to members of England's elite division, many clubs still need to borrow more to stay on top of their finances.

It is known that Southampton and Everton are among others who have used Vibrac in a similar fashion.

West Ham's debts topped £100m when Sullivan and Gold took over, and the latest available club accounts, for 2011-12, show Gold and Sullivan injected £32.2m of their own money in loans in that period.

This was in the wake of relegation in 2011 and helped fund their immediate return to the Premier League.

The news might signal a positive outcome n talks wth boss Sm Allardyce who has yet to be offered a new contract - his current deal runs out this summer. The news suggests West Ham mean business in next seasons transfer melee.


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