West Ham are currently living beyond their means financially and need to find ways of plugging a hole in their finances or face the consequences of possible sanctions.
The Hammers made an operating profit of £33m last season down from £65m the season before but with a loss in player trading and interest payments last season, the net profit was published at £17m.
In their latest published accounts, West Ham confirmed they spend £89.5m last summer and while that is not all paid up front it has left a sizeable hole in the club finances together with an increased wage bill way beyond the £106.6m reported last season.
Club insiders have hinted that these seasons losses could be between £25m and £30m by May when the club’s financial year ends and the following season could see losses in excess of £40m if nothing is done to stem spending.
Last week West Ham increased the price of Season ticket prices but these increases are only likely to bring in around £3m of revenue per season, a far cry of what is needed to balance the books. The departure of several highly paid players such as Andy Carroll this summer should help trim the wage bill to more manageable levels.
Failure to get a grip on a financially sustainable model for West Ham could see them breaching FFP regulations which could ultimately end up in a transfer ban for the Hammers.
Not to mention the 10 million pounds a year that now goes on Pellegrini.
It might help a bit if they didn’t get knocked out the Cup by F******* Wimbledon!
Isn’t it netted over three years though?
So Net profit in 2017/2018 was £17m and wasn’t the season before £40m because of player sales? So not so much a hole as more of an overdue bump? Expect to see Carroll, Zaba plus one or two others off the wage bill before we sign more but that’s just BAU?
Of course there’s a hole they need to plug all that money they’re shelling out for the stadium and all that TV money they’re getting HOW DO THEY SURVIVE????
I think you will find the TV money pays the wages as Sean has written – how else would we pay them?
Paying silly-money to almost permantly injured has-beens doesn’t help.
Just imagine what the losses would be if West Ham were paying a market rental for a smaller stadium!
Do Sullivan, Gold etc actually donate the money to Wesxt Ham, or do they lend it at exhorbitant rates of interest?
As is typical of the likes of Sullivan, they go from one extreme to the other. First, he was maximum intereference; now, he has transferred the purse strings to other over-hyped and paid coaches and associates who are clealry treating the club as their own little plaything.
At the risk of boring myself to death, too, unless or until the owners land back on planet Earth and stop thinking they can compete with state- and multi-national owned clubs, the quicker we will have a chance of actually becoming ‘best of the rest’.
I have seen it written elsewhere that some fans practically wish the team to lose so that they can have a permanent pop at them. What nonsense! What we expect is best efforts for and commitment to the club. Anything less is not acceptable.
Ironically, Everton (now 6th?), until Sunday, suffered from not turning-up against BIG teams.
Exactly the opposite to us.
Our next game, on 30th March, should be revealing.
What a dilemma for Both sets of players!