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Premier League clubs borrowing from money lender

David Sullivan believes the debt situation is not so bad at the top of the table © Getty Images

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A private individual has loaned three Premier League clubs "tens of millions" as some of the elite have already sold TV revenues and season tickets for forthcoming seasons.

Top-flight clubs are turning to a money lender to buy players, pay off debts or simply survive and stave off the kind of predicament that has hit Portsmouth.

Peter Storrie revealed to Soccernet that one of the biggest problems was that the banks called in their £40 million loans, and in the recession clubs have turned to this unnamed money lender of some considerable wealth.

West Ham co-owner David Sullivan told ESPNsoccernet: "A private individual has loaned three Premier League clubs tens of millions. I am not going to name him or say exactly how much he has loaned the clubs, but it is a considerable amount.

"A very rich private individual is making these loans based on the clubs' agreed payments from TV income. When we came to West Ham, we found that the club had sold its season tickets for two years in advance.

"We are also aware that financial institutions are buying up football debt at big discounts. One such financial institution bought some of the Portsmouth debt, but they are going to have to wait for their money now, if they ever get it all back."

Sullivan, though, does not necessary feel that the Premier League is in the kind of perilous state that has been suggested following Portsmouth's move into administration.

Much is made of the enormous debt at the top end of the Premier League, but Sullivan said: "Arsenal have just posted fantastic figures. Manchester United are the club most quoted as having the biggest debt, but big business does run on debt - look at Marks & Spencer.

"Chelsea and Manchester City can be taken out of the equation because their owners are running those clubs as hobbies.

"The real pressure is down the bottom, where the lesser clubs fear the financial effects of relegation, when whole income flows are no longer guaranteed if they go down. It creates sheer panic.

"That is why I would like to see a full parachute payment for the first season and half for the following two seasons. I have not advocated it, but it makes more sense to me. The fear factor at the bottom has to be addressed, because it is down there that clubs are pushing the financial panic button, and that leaves them wide open to doing things they might not wish to do."

© ESPN Sports Media Ltd.