25 Comments

Big clubs to dwarf OS financial advantages

OS1Hammers fans believing the move to the Olympic Stadium will allow us to compete with top six look set for a big disappointment next season.

For whilst Arsenal saw a huge £40m hike in turnover when they moved from Highbury to the Emirates in 2006, the Irons may see only a quarter of that –  at least in the short term.

The Emirates stadium has 60,000 seats compared to the Olympic Stadium 54,000. Arsenal have 7,000 corporate seats compared to West Ham’s 3,600 in the new stadium and the Gunners season ticket prices are much higher than the Hammers. Arsenal season tickets start at £1,014 with the most expensive seats at £2,013 and season ticket holders are forced to buy the first three Cup games.

By comparison West Ham’s season tickets start at £289 for the new band 5 with the most expensive band 1 normal seat priced at £899 (under Arsenal’s cheapest seat). Add to that equation the popular £99 season ticket for the under 16’s and 100,000 free tickets per year for Newham residents.

The Hammers heavy discounting on the first season on season tickets, together with half the number of corporate seats compared to the Emirates, means the increase in revenue will be between £10-£15m per season.

Speaking exclusively to Claret and Hugh to a senior cub insider told us:

“Our (increase in turnover) will be £10m-15m as we have kept prices low at the OS. There might be more from retail and sponsorship.

“My figures relates JUST to tickets and hospitality. Arsenal have 7,000 corporate, we have limited to 3,600 to make lots of good seats available for ordinary (ie non corporate) supporters.”

Based on 2014 released financial accounts Manchester United had a turnover of £433m, Man City £347m, Chelsea £324m, Arsenal £304m, Liverpool £256m and Spurs £181m as the six clubs with the largest turnover in the Premier League.

West Ham have a turnover of £115m in 2014 so a £15m hike from moving the Olympic Stadium would still leave us £50m adrift of Spurs, equal with Newcastle on £130m and £126m behind Liverpool. We will be between £170m and £300m behind the top four.

West Ham’s turnover is currently 10th in the League with Aston Villa £117m, Everton £121m and Newcastle £130m all above us in terms of financial power.

As the old saying goes Rome wasn’t built in a day and  it might takes several years at The Olympic Stadium to realise the benefit. And a rise in ticket pricing might be needed before we can financially compete with the Leaue’s big clubs.

All Premier League clubs will benefit from a new TV deal next season adding tens of millions to every club’s turnover but the top club will benefit more – making the gulf even larger.

 

 

 

 

 

 

 

 

About Sean Whetstone

I am Season Ticket Holder in West stand lower at the London Stadium and before that, I used to stand in the Sir Trevor Brooking Lower Row R seat 159 in the Boleyn Ground and in the Eighties I stood on the terraces of the old South Bank. I am a presenter on the West Ham Podcast called MooreThanJustaPodcast.co.uk. A Blogger on WestHamTillIdie.com a member of the West Ham Supporters Advisory Board (SAB), Founder of a Youtube channel called Mr West Ham Football at http://www.youtube.com/MrWestHamFootball, I am also the associate editor here at Claret and Hugh. Life Long singer of bubbles! Come on you Irons! Follow me at @Westhamfootball on twitter

25 comments on “Big clubs to dwarf OS financial advantages

  1. Look at those top clubs and you can see that their past and recent success pushed them in to that bracket. I say that and for the life of me, can not see how the spuds can be included in that group.

  2. Slightly depressing really.. Obviously the deal was not quite as good as we have been lead to believe. Maybe we should have got more of the naming rights & food/drink profits. Still on the plus side I saw a picture of it yesterday and WOW it’s starting to look fantastic, also the madness getting to and from the stadium last night (caused by 1 road & 1 rail problem) will be so much easier to avoid at the OS

  3. I suppose we would ramp up the prices, if we get any success in the next two years, just to catch up a little bit. It would risk a revolution but a taste of success is always a sweetener.

  4. Sean there are 2 components to this equation – yes our revenues will rise – perhaps by the order of magnitude you have indicated but our cost structure is also (at least as I understood the deal) been significantly reduced. As the other clubs have to provision significant sums for the upkeep and run of their stadiums we won,tl. So in my book a fair comparison would take into account the reduced operational costs and commitments we will have. I don,t know the figures but I suspect this makes a significant impact. Mr Sullivan is a very canny (and good) operator – from what I have read and observed he looks at these things (with Ms Brady) in the minutest detail. Amongst many other characteristics this is what makes him such a top class operator for our club. He and Mr Gold really are excellent and have done a top class job for the club – long may it continue.

    • They certainly have done a great job, and what you say makes sense as to the saving of running costs. I hope the actual amount balances out the amount we must pay for the stadium which by all believable accounts is a business tax of about 80% on our catering profits and the naming rights. It would be nice to know the actual figures of what you are saying, because I need cheering up about it.

  5. Always loved being an under dog,never wanted to be one of the above,fair weather fans,
    We needed a new stadium and now have one,no one said we had to join the prawn cocktail mob,at least our stadium won’t be packed with non supporters having a day out,
    Most of the above teams have attracted very,very ,very rich owners and we only have very rich,that’s the difference,

  6. That PragueAddick/Richar Hunt geezer on Charlton Life has indicated another storm brewing today with regard to the OS deal, he mentioned an exclusive story coming up in the Guardian this evening.
    Wonder what it might be this time.

  7. The PraguePr*ck needs to get a life H.Clearly has nothing better to do than cause sh*t all in the name of ‘The Taxpayers’.Him & his band of brothers are a sad bunch.Didnt see them stirring the sh*t when they needed somewhere to play when they were homeless & they shared UP.Two faced b*stards!!
    Ok rant over,i needed to get rid of that 😉

  8. An extra fifteen mill will give us a transfer kitty of 50 mill. Same as Newcastle. Not to be sniffed at. Let’s just hope we spend ours a bit more wisely than Newcastle.

  9. Well Tyson, let’s see what the Guardian brings up tonight. So far their petition hasn’t done a lot, it’s dying down quickly and their measures to keep it going look more and more desperate by the day.

    • I have no worries about it H,even if there is an issue it is out of my hands.Just cant stand these idiots like PraguePr*ck who forgets or chooses to forget who helped his club out when they were in the crap.It winds me up 😉

  10. It is nothing against us mate,they are doing it all for the good of the Tax Payer.You do know that dont you Tyson,lol 😀

  11. Not worried about any of this rubbish,Lady Brady will keep Tories happy,and that’s the end to it,
    Now why should Chelski and Spuds have the benefit of Wembly surely Orient need a ground share as well,could that not effect the gooners area for supporters would that not take fans away from OPR with more seats available ?
    A petition I think
    No not that SAD

  12. With the added sky money we will have a stupid amount to spend along with the 19 teams other in PL (touch wood). Any team that goes down this season & teams coming up
    2016/17 are going to struggle big time. How can any team come into the PL after the sky money kicks in & be competitive??

  13. Apparently the details of the deal will need to be released now…

    http://www.theguardian.com/football/2015/sep/15/west-ham-details-olympic-stadium-deal

  14. Yeah i was just on the Guardian site reading it,was about to put the link up.You beat me HH,haha 😉

  15. Reading the figures listed there, am i wrong in saying that the ‘tax payer’ has only put in another £25m..?? £148.8m given 2010, newham £40m, WHU £15m, olympic funding £40m & then the extra £25m from gov…..

  16. Let’s get it out there it won’t make any difference
    I hope we got a even better deal than is reported,
    Not worried weather Boris looks any more stupid then he does,
    All because Poyet left them for us,

  17. I’d love it if the only ultimate result is the taxpayer missing out on further income due to the work of the petitioners because Vinci will not be able to negotiate the best deal for future events in the OS due to commercial confidentiality being lifted.
    I’m pretty sure the deal is legally watertight.
    So how could a deal that has been signed, sealed and delivered be renegotiated at this late stage ?

    West Ham are very much on the safe side here.

  18. PraguePr#ck wont know what to do when this is over,he will have to go hug some trees that are going to be chopped down in some remote forest in Wales.Maybe there is a rare lizard in a field in Scotland he can campaign for.He probably used to sit with all the lesbos outside Greenham Common campaigning for nuclear disarmament in the 80s with a greasy dreadlock barnet & battered old guitar.Tosspot 😀

  19. essexclarets, everything else apart from West Ham’s contribution will be classified as state aid/public money by the petitioners, no matter if it’s come from Newham Council or if it has been budgeted before for the Olympics.
    Ideally they want West Ham to pay for the whole conversion upfront without owning anything at the OS and without getting stuff like naming rights or corporate income.

  20. The only way that would happen would be to guve us the stadium & we keep all income from everything held at the stadium including naming rights. Replace Vinci with west ham.

  21. Say bollox to it all, walk away & stay at BG. Let the stadium sit empty for 11 months a year

  22. Sounds lovely, but not sure Galliard will be prepeared to give the Boleyn back. They probably already sold some of those flats yet to be built in the meantime.

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