From next season, the financial environment of the Premier League, including West Ham United, is set for significant change due to a new Profit and Sustainability Rules (PSR) model. Currently, clubs like West Ham are allowed to lose no more than £105 million over a rolling three-year period. UEFA has its own financial regulations, and West Ham were placed on a watchlist by the governing body in 2022 due to their financial projections. However, the club’s recent successes, especially three consecutive seasons in European competition, have helped improve their financial standing.
West Ham’s revenue trajectory is likely to be less than previous seasons given the loss of European football but that is for 24/25. The financial report for the 2023-24 season is projected to show revenues of around £275 million, and this will be critical as the new PSR system takes effect.
The Premier League has agreed to trial a new system that limits spending based on a percentage of turnover. This model mirrors UEFA’s approach and is expected to be formally adopted in the Premier League’s 2024 AGM. The new rules will cap spending on wages, transfers, and agent fees at 85% of turnover. Based on West Ham’s projected revenue, this would mean a playing budget of £234 million for the season.
This new spending restriction could lead to “tough decisions” for West Ham’s management, according to club insiders. The concern lies in balancing competitiveness with financial sustainability as the club adapts to the tighter regulations.
The figure highlight the importance of Julen Lopetegui getting the club back into Europe once again which yields significant income each season depending on progress.