0 users online

No repayment on Al Fayed loan

last updated Wednesday 19th May 2010, 7:45 AM

Fulham's rise from penury in the 1990s at a clapped-out Craven Cottage to the Premier League, culminating in this season's march to the Europa League final, has been financed by interest free loans from Mohamed Al Fayed, which reached £183m in 2009. The accounts state that Fayed's holding company, incorporated in the British Virgin Islands, a tax haven, had given assurances that "no repayment demand will be made which would cause Fulham to become technically insolvent".

Financial state of other top premier league teams

Roman Abramovich's funding of such repeated losses has taken his investment in the club (Chelsea), in the form of a loan to the holding company, to £726m since he took over in 2003

Arsenal, however, made a record £316m turnover last year and a £46m profit, and Manchester United, who still had a huge £278m turnover, also made a profit. That was principally because Cristiano Ronaldo was sold for £81m, so counter-balancing the £69m interest payable on the £717m debts the Glazer family owners have imposed on the club.

Tottenham Hotspur were second to Arsenal in profitability and look financially healthy, although the cost of players signed for Harry Redknapp will only become clear when the accounts for 2009-10 are published.

Apart from those clubs, which finished in this season's top four, those aspiring to Premier League heights have needed significant investment from owners. Manchester City's was the most spectacular: Sheikh Mansour of Abu Dhabi invested £395m as equity, not loans, between his takeover in August 2008 and January this year. At Aston Villa Randy Lerner loaned £105m from his US holding company, charging interest to the club.

Source http://www.guardian.co.uk
Since 1998
"It's been updated!"