Perhaps the scariest statement in the West Ham accounts is talk of a liquidity shortfall of £4.3m this summer, suggesting the club will not have enough money to pay the bills come summer, even if West Ham avoids relegation. This can only be resolved by shareholders injecting cash or selling assets of either players or part of the women’s team this summer.
The accounts state “further player trading” will be needed in the summer, while shareholders will have to provide more funding.
“Under both the base case and severe but plausible case forecasts, mitigating actions are required in order to have sufficient liquidity for the Group to meet its liabilities over the going concern period,” the accounts say
“The primary mitigating action within the control of the Group is cash receipts from further player trading,”
“Should this not be preferred or sufficient, additional funding from the shareholders would be required.
“In the event the severe but plausible scenario occurs, the Group is also forecasting a liquidity shortfall in summer 2026 to a greater severity.
“Accordingly, more significant mitigating actions would be required such as further player disposals to generate transfer fee income and wage savings, or additional funding from the shareholders, or a combination thereof.”
Claret and Hugh put this to our most senior source at the club, who responded, “Too many variables to predict at this time”
Even though West Ham lost £104m last season, they are still within the current PSR rules, which allow £105m of losses over three years.
West Ham made a profit of £57m two seasons after a loss of £17m three years ago, leaving a net loss of £64m last summer and well within the PSR limits.
At the end of this season, West Ham’s losses must stay under £58m to avoid breaching the final period of PSR before SCR takes out next season.
If Alan Sugar was running our club,he would have told Sullivan and Brady “YOU’RE FIRED!”.
Could we end up like Sheffield Wednesday have ? I would imagine it is possible, from what I have read about their situation, it is a club where the owner won’t invest his own money to help them. In our case I just want this board gone
so it’s 2 clubs sullivan has ruined sold everything & us down the river. How can anyone back him makes me sick i have refused to give Sullivan my money since the 2nd season in ls. missed out on going to so many games & great Europe run
You clearly didn’t read the article very well or understand PSR either. The £105m losses are not over one season but THREE! We lost £104m last season,a PROFIT of £57m the season before and a £17m loss 3 years ago. That makes a net loss of £64m over the three year PSR accounting period,well within the £105m you’re allowed over those three seasons.
So relegated or not Bowen will be sold Summerville sold Fernandes sold and Todibo so those very astute! businessmen who run our club do not have to trouble there own bank accounts and prop the club up.
Sick of west hams owners running the club so badly ! We are back to where we were with the Icelandic owners all those years ago! Promised so much by Brady and Sullivan and all they’ve done is put us in debt and probably the championship next season! They should be ashamed of their lack of business acumen and step aside and left some professional people run our football club.
Hi Sean, how have they allowed this to occur? More importantly have they learned anything from this debacle that will see them be far better at their jobs in the future? My betting is that the owners won’t add any liquidity themselves and these losses will be funded by a massive player fire sale that will take us years to recover from and possibly see us fall through the divisions as a result
How? That is the question at the forefront of my mind when I read these articles.
How is it possible that West Ham can be so poorly run?
The Directors (including the late David Gold) injected their own money to save the club from the Icelandic debacle. Fair play to them. But now it seems no lessons have been learned?
Upton Park was sold, the club pays a pittance for a rented stadium, no mortgage.
Is this the new era of upper echelon football we were promised?
Has Sully’s picks been so awful we’ve ended up here (old players with little sell on value, managers brought in on the cheap and sacked on the expensive).
Is the club just poorly run?
How are the minority shareholders feeling about this, can a vote if no confidence be made?
Surely this isn’t the ROI they expected.
Now factor in, the gods forbid, relegation.
Is it time to start worrying?
Well stated, add into the Training facilities being so run down
Wow that’s convenient 105 million would have triggered actions against West Ham on PSR and our losses were 104 🤔