New restrictions may create £41m Irons black hole
The government announcement that the expected return of fans on October 1 won’t happen has delivered a big financial blow to West Ham and the game across the board..
Speaking in the commons at lunchtime the Prime Minister declared: “We have to acknowledge that the spread of the virus is now affecting our ability to reopen business conferences, exhibitions and large sporting events, so we will not be able to do this from October 1.
I recognise the implications for our sports clubs which are the life and soul of our communities, and my right honourable friends the Chancellor and the Culture Secretary are working urgently on what we can do now to support them.”
He said the measures being announced on Tuesday would remain in place for “perhaps six months”.
West Ham who earn over £27m in ticket revenue and £12m in corporate hospitality look set to lose the majority of that income this season.
The club will also lose around £100,000 per home game in retail club store revenue adding another £2m of misery.
This could leave a £41m back hole in the club’s finances as the Premier League comes to terms to a season without fans inside the stadium.
Last week the club proudly announced a renewal rate of 88% of season ticket holders injecting millions in cash flow back into the club, but that money will now have to be refunded game by game automatically, 30 days after each home match.
Clubs in all divisions will be in the same position with some who more heavily reliant on ticket income in far worse trouble.
FIFA estimate football as a whole will lose $11 billion while Karren Brady says Premier League clubs will lose £80m per month while games aree played behind closed doors.