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Hammers face doomsday scenario

 

By Sean Whetstone

 

The Irons could lose up to half a billion pounds (£529m) in revenue if they are relegated and spend three seasons in the Championship.

That is now the incredible difference between the two leagues in financial terms.

Relegated Premier League clubs get three years of parachute payments in an attempt to soften the blow, but in reality, the drop would still be catastrophic.

On top of that they could lost Declan Rice at a knockdown price after sliding into the second tier.

Clubs receive  £44m parachute payment in their first year of the Championship, with ticket revenue, commercial, & retail approximately halving on average.

Against West Ham last season’s record figures, the Hammers would be down £165m in revenue terms, although they would cut their wage bill considerably to compensate to limit losses. There would also be a fire sale for many players most of who – if not all – have relegation clauses in their deals.

If not promoted in the first season, in year two in the Championship, the parachute payment reduces to around £36m, which could see lost revenue amount to £172m for that last season compared to West Ham’s record turnover in the Premier League.

In a doomsday scenario where West Ham is stuck in the Championship for three seasons NowNews West Ham – Six Foot Two (6foot2.co.uk)  says the parachute payment reduces to around £16m, which could see lost revenue amount to £192m for that last season compared to West Ham’s record turnover in the Premier League.

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About Hugh5outhon1895

Hugh Southon is a lifelong Iron and the founding editor of ClaretandHugh. He is a national newspaper journalist of many years experience and was Bobby Moore's 'ghost' writer during the great man's lifetime. He describes ClaretandHugh as "the Hammers daily newspaper!" Follow on Twitter @hughsouthon

One comment on “Hammers face doomsday scenario

  1. Another site is claiming the reason for the delay in sacking David Moyes is the potential of paying £7 million compensation and that every month this is delayed saves £475,000 a month. Take the hit Board and pay, it isn’t worth the risk

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