West Ham financial accounts reveal loss
The main areas show:
O Turnover increased by £15.4m (8.8%) from £175.3m to £190.7m
O TV income grew by £8.9m (7.5%) from to £118.5m to £127.4m
O Ticket income grew by £2.9m (11.8%) from £24.5m to £27.4m
O Commercial and sponsorship including corporate hospitality sales grew by £3.4m (14.1%) from £24m to £27.4m
O Retail and shop sales grew by £500,000 (6%) from £8.2m to £8.7m
O The club published a gross profit of £20.6m but this reduced to a net loss of £28.2m after net spend of player trading was factored in
O Wages increased by £29.2m (27.4%) from £106.6m to £135.8m which means wages account for 71,2% of turnover.
The highest-paid director wages (believed to be West Ham Vice-Chairman Karren Brady) increased her salary from £898,000 to £1.13m.
O Net spend on player transfers was listed at £89.4m for last season 2018/2019 with £6.8m of potential add-ons. Post balance notes reveal a net spend on transfers of £35.8m last summer (2019) with £3.4m of potential add-ons.
In the last four years the club say they have spent £214.4m net on new players and has invested £22m on infrastructure, including complete refurbishment of facilities at Rush Green, including a new gym and new training pitches; the Academy at Chadwell Heath was totally rebuilt; and almost £2m has been invested in the Women’s team.
O An update on West Ham loans:
The club re-paid a £39m short-term loan to Media Rights and Funding between May and July 2019. A new short term loan of £39m with Media Rights and Funding was secured against the training grounds and Stadium lease to help with cash flow. This loan is due for repayment in July 202o.
The Share Holder loan balance £45m has been deferred from payback in January 2020 to a date yet to be defined. Two payments £2.9m were paid to David Sullivan and David Gold in respect of interest accrued on Share Holder loans. Interest was charged ar 4.25%. An additional £1m payment was made to a company controlled by David Gold as a partial payment of loan capital brining the total paid back to £3.9m down from £4.6m the previous year.