Skip to main content

Relegation would hit West Ham hard

West Ham United have warned of the “serious and severe” financial consequences if they are relegated from the Premier League this season after announcing a loss of £104.2 million.   The east London club said their biggest loss since returning to the top flight in 2012 was a result of player trading, poor performance and not having European football.

The wage bill increased from £161 million to £176 million for the financial year ending in May and their wages-to-turnover ratio rose to 77 per cent. They also owe £195 million in transfer fees to other clubs in next three years.West Ham United have warned of the “serious and severe” financial consequences if they are relegated from the Premier League this season after announcing a loss of £104.2 million.

If relegated to the Championship, West Ham would expect to sell several players such as Bowen, Jarrod and Summerville.

Turnover fell from £269m to £228m due to lower income from broadcasting and match days   The highest paid director, thought to be Baroness Brady, was paid £1.47 million, up £35,000.

West Ham paid almost £22 million in interest payments. The club also took out a £124 million loan facility for a five-year duration and has drawn down £89 million.

The club have been in talks with investors wanting to buy David Gold’s 25 per cent stake, controlled by his descendants. However, the problem remains that any new investor would not have control of the club without buying shares from David Sullivan, the co-owner who owns 39 per cent, or the Czech billionaire Daniel Kretinsky, who bought a 27 per cent share for about £150 million in 2021.

Some of the potential investors have a tech background, which could appeal to supporters who have called for better scouting and the use of the type of analytics employed by other clubs.West Ham paid almost £22 million in interest payments. 

The club have been in talks with investors wanting to buy David Gold’s 25 per cent stake, controlled by his descendants. However, the problem remains that any new investor would not have control of the club without buying shares from David Sullivan, the co-owner who owns 39 per cent, or the Czech billionaire Daniel Kretinsky, who bought a 27 per cent share for about £150 million in 2021.


Labels:

Comments

Post a Comment

Popular posts from this blog

It's no deal say Spurs insiders over Taiwanese takeover

Senior figures at Tottenham Hotspur insisted on Friday that they had not been informed of any deal to sell Daniel Levy’s stake in the club. A business group, Eight Sports Capital — which is said to include a billionaire Taiwanese financier — claimed that it had an agreement in place to buy a 24.99 per cent stake in ENIC, the club’s majority owners, from Levy, who owns 29.88 per cent. The Times has been told Ng Wing Fai and Brooklyn Earick form part of the group, having both been linked previously to potential takeovers of the Premier League club. The Taiwanese businessman, Richard Tsai, is also said to be part of the consortium. He is reportedly worth £7 billion.  Last year Earick, the former DJ and tech entrepreneur, was part of an attempted £4.5 billion takeover, which was “unequivocally rejected” by Spurs.  An ENIC spokesperson said: “We can confirm that neither ENIC nor THFC are aware of any sale by Daniel Levy’s Family Trust of its minority stake in ENIC, THFC’...
Post a Comment
Read more

Reports about Charlton sale exaggerated

Reports have appeared in The Guardian and elsewhere that Charlton has been put up for sale. Richard Cawley is an authoritative local journalist who runs a South London Sport substack site.  He reached out to the club yesterday evening to ask for comment on The Guardian’s article. Early indications from the club have been that nothing has changed since the story about them seeking investment, except that it is now a different company doing it. Charlton have since managed to consolidate their place in the Championship, avoiding an instant return to League One, with their women’s side promoted to the WSL, returning to the top flight for the first time since 2007, although staying there is likely to be costly. It would be counter-intuitive for owners Global Football Partners not to progress the club when looking for investment, that the focus remains on driving it forward, that their spend this summer is in line with long-term planning and will see an increase in wages spent on players...
Post a Comment
Read more

Hull City's 'strange' loan

When football finance guru Kieran Maguire seems flashing lights in a club's loan deal, I become concerned.  He is the leading football finance expert in the UK. Hull City have borrowed £55m against their stadium and training ground yet they should get £30m from the Premier League before long.  What is going on? https://www.bbc.co.uk/sport/football/articles/cpwel48y51do
Post a Comment
Read more