Football finance expert Stefan Borson has pulled no punches in a report published by footballinsider.com regarding the current state of West Ham United’s financial obligations and status following a £170 million transfer splurge. Many Hammers’ fans will be concerned about the impending case being launched against Manchester City over their 115 counts of financial impropriety and the points deductions handed out last season to Everton.
The news for all Irons fans is that Borson – a qualified lawyer and football finance expert who, ironically, advised the board of Man City for some years- sees no problems ahead for West Ham from the ‘Profit and Sustainability Rules’ (PSR) point of view.
According to Borson:” West Ham are under no threat of breaching the profit and sustainability rules (PSR) after selling Declan Rice for £105million last summer.”
(Declan Rice is becoming the ‘gift that keeps on giving!‘ MT)
Borson continues: “That means there are no real issues there because that was a huge amount of profit that’s gone into the three-year rolling period.”
He continued: “I am sure they will try and move some players on, but they don’t have any PSR issues: One reason for that is because they have been extremely well run over the last few years.”
“If you look at particularly their wage bill and the way they run their operating expenses, they appear to be very well run from a financial perspective compared to their peer group.
“That’s the first indication of resilience from a PSR perspective.”
Which, in the midst of our transformation with Lopetegui coaching a massively uprated squad including several international-quality new recruits brought in by Technical Director Tim Steidten, including Aaron Wan – Bissaka, Cyrencio Summerville, Niclas Fullkrug, Max Kilman and Jean-Clair Todibo, will come as a degree of relief to West Ham fans who are used to the club managing to find a way to make life difficult for themselves. The spend is somewhere between £120 and £170 million depending on who you listen to – and with player exits few and far between – as most seem to be on wages that no new club is prepared to meet- the possible pitfalls under PSR rules are obvious.
We look forward to this ‘well-run’ club now being as ‘well-coached’ so that results, gradually, develop following the investment and move the club forwards.
A football finance guru who advised Man City about their finances and who are now facing 115 charges and possible relegation…… said West Ham will be ok.
Righto fella.
We were in a very good PSR position before the window, and what we’ve spent is in instalments not all up front with likely a few outgoings still to come will bring money in. I don’t think we’ve run into PSR problems.
tim also appears to be cutting down the wage bill
fullkrug was on 85k a week but that wage was cut to 50k a week at west ham
this explains both the long contract as well as the high fee – a large portion of that fee is likely to fund a kick back to fullkrug from the german club to cover the remaining 2 years of his old contract and avoid uk tax liabilities
just like wan-bissaka, we paid an extra 5m to fund his loyalty payment, initial offer was 10m, increased to 15m to facilitate the move
it’s pragmatic business, especially for players who are expected to have little to no sell on value when their contract expires
this way you avoid the dead wood limiting club progression scenario we were beginning to cultivate under moyes
ie zouma, ings, soucek, jwp – all on over 90k wk and almost impossible to move on those wages
fullkrug on 50k at 35 years old isn’t going to be much of a burden in 2028 inflation dollars
long contracts suggest the financial brains at west ham expect inflation to continue at high levels – i don’t think that is highly speculative with governments out of control spending transitioning energy production to renewables