PSR limits direct club losses to up to £15 million over three years, with the remaining £90 million to be covered by shareholders.
Club insiders claim that last season’s losses totalled £95m. When added to the £57m profit from the previous season and the £18m loss from the season before that, the total loss over the last three years is £ 56m, meaning shareholders will need to inject £41m of cash minimum before the end of June to balance the books.
This cash injection could be shared equally with each shareholder paying a percentage, or there could be a rights issue where one or more shareholders inject the cash and the others dilute their shareholding in West Ham.
Spread equally, [David Sullivan](https://www.claretandhugh.info/david-sullivan-bio/) would need to stump up £15.9m, Daniel Kretinsky £11.07m, Vanessa Gold £10.3m, Tripp Smith £3.28m and others £451,000.
If Daniel Kretinsky were to inject the £41m himself, he could expect to increase his shareholding by around 8% to 35%.
In that scenario, it would see Sullivan shareholding reduced to around 34%, Gold family reduced to around 22%, Smith down to around 7% and others down to 1%
If we lose £100m this coming season as is currently being forecast, the three-year losses will amount to £138m, so shareholders would need to inject another £49m next year, and the club will need to make £33m in savings from wages or player sales or find additional revenue to balance the books.
Finally, if we lose £80m next season (2026/2027), which is also being forecast, then the three-year losses could reach a massive £275m, so the club would need to do something rather drastic.
One hope is that Premier League clubs get rid of PSR in advance of the 2026/27 season and just rely on SCR & TBA, but that requires 14 clubs to agree to that at a Premier League board meeting during the coming season.
Squad Cost Ratio (SCR) rules, similar to UEFA’s financial sustainability rules, would restrict clubs to spending a maximum of 85% of their total revenue on squad-related costs.
West Ham’s revenue last season, without Europe for the first time in three years, is estimated to be around £216m, so 85% of that is £183.6m
The Hammers’ wage bill is more than £165m per annum, the majority of which goes to players, with over £65m in amortisation transfer fees per year in the accounts, plus agent fees of £19m last year.
It does NOT compute!!! Either way, we have some tough financial decisions to make.