Much has been written about the perilous state of West Ham United’s finances over the past few days.
The cost of relegation, accumulated debt and how the drastic drop would impact the club have all been discussed at length.
So Claret & Hugh went to the top man in the business to find out just how much fiscal trouble the Hammers are really in. Last night, we spoke to Kieran Maguire from The Price of Football to discover exactly how much the club still owes in transfer repayments.
The West Ham accounts are due to be released imminently, which will provide more detail on the club’s wider finances. However, Maguire was able to give C&H a clear steer on the money still owed for players, including some who have already left the club.
Maguire said:
“West Ham owe £191m in unpaid transfer fees at 31 May 2024, so I suspect that’s gone up since then.
They also have a £5m loan and a £40m overdraft limit with Barclays.”
Why Relegation Would Force West Ham to Sell
Reading between the lines, and factoring in transfers completed after May 2024, it is safe to assume West Ham now owe in the region of £250m in unpaid transfer fees.
It is worth noting that this situation is not unique to West Ham, as many clubs operate in a similar way. That said, most with that level of debt are not on the cusp of relegation. The Hammers will, of course, be owed money themselves for players such as Mohammed Kudus and Luis Guilherme.
However, that incoming income is nowhere near enough to offset what is owed. And that reality means West Ham would almost certainly be forced into selling players if relegation to the Championship were to become a reality.
I am not concerned about the financial position of the club. This is an ongoing problem for the highly paid financial experts employed by the owners.
It is their job to see that everything runs smoothly in the background. Leaving us to enjoy the football. Message to the numbers guys – use some imagination and keep it legal.
COYI
This is only the tip of the iceberg, this has been on the way for years, it sounds absurd, but under this Ownership/Management, this club could well end up in the wilderness, aside of a few overpaid, overpriced players, what do they have ? answer not a lot, remember Birmingham
Looking on the bright side when(not if!) we get relegated then there is a big decision for the stadium owners (London taxpayers) the taxpayers subsidy will increase significantly with halved rent and probably halved income from food and drinks if the 34,000 last Tuesday becomes the norm. This gives us a chance of attracting investors for a capital asset
I know this is looking at an Armageddon moment, but if we get relegated and suffer more than one season in the Championship, then I presume there is a chance of the club going into Administration.
Our transfer debt, our borrowings secured against future earnings which will not be there, reduced income (albeit reduced wages) doesn’t paint a pretty picture.
So the question is, if we do enter Administration, where are we with the lease on the LS?Presumably it would trigger a break clause. Glass half full, it could give us a great chance to renegotiate better terms but I fear the reality is we would have little leverage and find ourselves in a worse lease or maybe with no home!
I presume this potential event would force the shareholders to finally put their hands in their pockets, or maybe see Kretinsky use the position to get Sullivan or just the Golds to sell at a more realistic price.
I’m beginning to convince myself relegation is the way to go!!!! I’m not quite there yet, but I can see some definite potential positives! What a terrible place BS are putting us all in
The idea that because we rent the stadium that has no value to the club is muddled thinking. That long term lease provides a very cost efficient way to have a stadium to play in. Add in that London government are pretty desperate to get rid of the stadium any club owner has the likelihood of being offered a very sweet deal in the future to take it over. That long term lease probably has a value significantly more than the land that was underneath Upton Park. Leases have value in particular those that were extended on very favorable terms. Spurs stadium cost them a billion of which Spurs still owe around 850 million. What would the current owners of the London Stadium take to sell it? Let’s say 100 million. And no one else is going to buy the stadium with the lease that West Ham have on it.
It’s an utter mess.
Didn’t this board absolutely deride Scott Duxbury for doing the same, but on a smaller scale? Mind you that was down to the Icelandics misfortune. Our current predicament is soley down to B.S.
We’ve had investment into the Ladies team which counts, plus Kretinsky’s £150m and a split in the shares valuation if memory serves me correctly.
We’ve had every opportunity to really push on since leaving our beloved Boleyn ground, alas we have blown it, poor leadership, poor business acumen, terrible infrastucture, appaling transfers outbound fees gathered in the main. Awful managerial appointments, awful playing style from BFS onwards.
Apart from that, we’ve done alright!
Let’s start again – plenty of land in Docklands for a new FOOTBALL stadium.
Rid ourselves of our parasitic board and the soulless bowl for ever – the rebirth of West Ham United !
It’s a crazy reality for us to be facing and we are actually talking about relegation.
If we do go down (I shudder) then hopefully selling up to hopefully a professional outfit will be our salvation.
I doubt care about what we spend on transfers I’d just love to see us run professionally and smartly
Morning Gonzo, I’ve been saying this for years after the war of words with Sporting when Sully wanted to spread the payments over 5 years, he’s kicking the can down the road too often and borrowing constantly against future revenues. That’s all well and good provided you aren’t relegated.
Fact is he’s no good on the football side and frankly you could argue the years we’ve made a profit was down to a gift like Rice and the European football which as WH fans doesn’t happen often.
Fact is we’re in similar danger to doing a Leeds under Ridsdale, and that took them years to recover. We are in an Armageddon situation now so hopefully the last of the ‘Sully and Gold saved WH brigade’ have crawled back under their rocks but I’m afraid as Turkish would say ‘we are proper f’ed’
Morning Jimbo, I think you’re absolutely right mate. Factor in the rented stadium and we are in a right pickle in the event or relegation mate.
Fact is he’s not learning from his mistakes. We’ve just structured the Taty deal in the same way as Todibo. He keeps buying on Klarna an it needs to stop.
What an absolute shambles we are in.
However the writing has been on the walls for a number of years.
Moving from the Boleyn to a rented athletics stadium…..what a ripper move indeed.
Smart thinking indeed !!
Just a thought, but if we are relegated and end up leaving the London Stadium, where would we go?
Why would we leave the stadium (notwithstanding that some won’t to leave regardless) We have a very cheap lease and what division we are in does not affect that
Brisbane Road !!