With increasing speculation suggesting that West Ham are facing PSR (Profit & Sustainability) issues, it is important to clarify that this was not the case leading up to their accounting end date of 31st May 2025.
The financial losses being discussed actually pertain to the following accounting year—meaning West Ham still have both this transfer window and the January transfer window to manage their figures accordingly.
Under PSR regulations, a club cannot exceed losses of £105m over any rolling three-year period.
However, when it comes to transfers, there are several ways to navigate these rules. The most straightforward is spreading transfer costs over a long period while all incoming transfer fees are booked immediately in full.
As I mentioned in a previous article, most clubs moved their accounting end date to 30th June in order to give themselves more flexibility.
Amortisation also plays a key role in helping fund further transfers.
Additionally, some clubs have used more creative methods—transferring assets such as hotels and women’s teams within an owner’s portfolio—to boost revenues. While these tactics are complex, they fall under the umbrella of internal asset sales.
West Ham’s PSR focus is more on the future than the here and now. And while player sales are one option, the Board—with some clever guidance—can explore other routes to avoid reporting a significant loss.
Todibo was an example of creative accounting by West Ham
In fact, they’ve already been doing just that, with an obvious example being the loan-to-buy deal for Jean-Clair Todibo, with further payments structured in instalments.
So which club is allegedly looking nervously at 30th June? They play in claret and blue—yet it isn’t West Ham!
It is reportedly Aston Villa who have officially lost £200m over the last two seasons—and it’s widely expected that there will be some player sales within the next few days. This may also include some innovative deals between other clubs who should be fine, yet need to be creative with any transfers before 30th June.
Does that loss include what Villa got for this board’s favorite Duran? That should have sorted out most of their problem.