From David Sullivan, joint chairman of WHU
To: WHTID readers
I do read your site regularly. People seem to misunderstand our loans. On our loans to the club there is a ‘notional interest rate’ as it’s unrealistic if there isn’t, and HMRC might question the loans. However. no interest has been paid or will be paid until the club is solvent/financially self sufficient. It just rolls up as a debt that may or may not ever be paid.
In contrast loans and repayment and interest to the bank have to be paid or the club is declared bankrupt. It is our money that then replaces these loans when they become due to avoid default.
It hurts us when supporters imply we are somehow collecting interest on our loans. In reality we have to put more and more in as the bank loans become due for payment.