News

Rice sale will help boost West Ham turnover to around £368m

|

A £100m plus bid from Arsenal for West Ham captain Declan Rice is believed to be imminent.

West Ham could record record turnover of £368m thanks to a good European run and the sale of Declan Rice in this financial year.

This season West Ham will book a full £100m profit on Declan Rice as he was sold to Arsenal on 15th July last year six years after the Hammers’ financial year-end.

In a twist of fate, sales are recorded in the single financial year they are sold in the accounts, unlike incoming transfers which are spread over the life of the contract.

West Ham spent around £105m last summer in transfer fees but as these transfers are amortised over four years so around £35m will recorded in this season’s accounts.

West Ham is likely to earn £150m from Premier League TV money this season with an Equal share of £91.7m,  TV facility fees: £17.8m, and merit payment: £40.3m if the Hammers finish eighth.

Add to this an estimated £23.5mm earned from the Europa League cup price money run to the quarter-finals.

Ticket match day revenue is likely to reach £45m plus commercial/sponsorship of another £35m revenue plus retail sales of around £14.5m

That would create a record turnover for this season of around £368m way above the £253m recorded two seasons ago.

Summer signings are likely to come after the financial year ends at the end of May so expect West Ham to make a massive profit on paper.

Share this article

I am Season Ticket Holder in West stand lower at the London Stadium and before that, I used to stand in the Sir Trevor Brooking Lower Row R seat 159 in the Boleyn Ground and in the Eighties I stood on the terraces of the old South Bank. I am a presenter on the West Ham Podcast called MooreThanJustaPodcast.co.uk. A Blogger on WestHamTillIdie.com a member of the West Ham Supporters Advisory Board (SAB), Founder of a Youtube channel called Mr West Ham Football at http://www.youtube.com/MrWestHamFootball,

I am also the associate editor here at Claret and Hugh.

Life Long singer of bubbles! Come on you Irons!

Follow me at @Westhamfootball on twitter

West Ham News

0 comments

  • Anonymous says:

    Are you sure that Rice’s sale goes into turnover and not just on the balance sheet Sean?
    I was in business for 30 years and am not an accountant but had these things regularly explained to me by accountants. Football might be treated differently of course but, I doubt it. Capital purchases and sales are not included in turnover profit and loss figures. These are for the regular sales of tickets, broadcast rights, merchandise etc on the plus side and costs of operation – wages, rents, utilities etc to leave a profit or loss.

    The buying or selling only appears in the balance sheet. Mostly they involve costs like player fees that are written off the balance sheet figures. Profits from years gone by should make up most of the balance sheet but Kretinski’s new share issue and now the sale of Rice will offset the capital cost of amortised purchases. This will leave a healthy balance sheet but I am fairly sure Rice’s sale will not increase WHU’s annual turnover figures.

Comments are closed.