West Ham United have made the club’s stance clear on plugging their financial black hole through player sales after posting a record £104m loss.
All the way back in June last year Hammers News exclusively revealed West Ham would announce record losses in excess of £100m in their next accounts – and so it has proved.
The Hammers have posted the club record £104m loss in their 2024/25 accounts, one day before the February 28th deadline.
Now West Ham have clarified their stance on the most obvious way of plugging that financial hole – selling players.
West Ham confirm player sales will be first port of call to plug financial hole
Nuno Espirito Santo’s side are fighting hard to avoid relegation from the Premier League.
A shock win at Liverpool would see West Ham climb out of the relegation zone for the first time since November, for 24 hours at least.
This is shocking! 😰 Relegation is going to be dire for West Ham…
What would YOU do to avoid this mess?
West Ham owner David Sullivan
The Hammers have turned the season around over the last six weeks and are being backed by many pundits and journalists to stay up at the expense of either Nottingham Forest or Spurs.
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Majority owner David Sullivan, the club’s second biggest stakeholder Daniel Kretinsky and vice-chair Karren Brady have been under fire from West Ham fans all season.
West Ham majority owner David Sullivan and vice-chair Karren Brady in the director's box during the defeat to Crystal Palace
Photo by Richard Pelham/Getty Images
Now the pressure has ramped up even further on the owners after they confirmed the mammoth losses.
That pressure will also transmit to Nuno’s team given just how crucial survival has now become against the backdrop of the club’s financial turmoil.
West Ham do not own their own stadium and, as a result, their only major saleable assets are the playing squad.
It does not take a football finance expert to see that the Irons are going to have to find a way to address the £104m loss.
A fire sale of players will undoubtedly be needed should West Ham suffer a catastrophic relegation on top of the grim accounts filed with Companies House.
Hammers admit they may also have to sell players to avoid financial rules breach
There is also an argument that player sales will be needed even if the Hammers do manage to stay aboard the Premier League gravy train.
As part of the filing of their annual accounts, West Ham are required to explain their plans for the future to remain a going concern.
Would you take relegation if it meant that David Sullivan would leave?! 🤔
Not a nice position to be in – but what would YOU choose if you had to?
David Sullivan takes in a West Ham match from the directors' box
Photo by Tom Dulat/Getty Images
The Hammers hierarchy have made it clear that player sales will be the first port of call to bridge the huge chasm in finances if the club is relegated.
West Ham have further warned that, while currently compliant with financial fair play rules, player sales may be needed even if they stay up should it become clear the club is at risk of a breach.
Here is every word the club’s board has said about their stance on player sales in the event of relegation:
Jarrod Bowen of West Ham celebrates with teammates Crysencio Summerville and Mateus Fernandes
Photo by Julian Finney/Getty Images
“There are a number of potential matters which could have a material impact on the Club’s long-term performance. These are monitored by the Board on a regular basis,” West Ham state in their 2024/25 accounts.
“The Group’s principal business risk remains that of the men’s football club being relegated from the Premier League with the serious financial consequences which follow. The Group prepares budgets two seasons in advance which include an evaluation of the impact of relegation and associated contingency plans. It is a feature of football clubs’ income streams that a significant element is known in advance because of its long-term contractual nature.
“Centrally negotiated broadcast and sponsorship deals are presently in place to at least the end of the 2027-28 season. The Group’s own major sponsorship and partnership agreements are also in place until the end of seasons 2025-26 and 2026-27 respectively.
West Ham owners: If forecasts indicate the club may breach the new SCR rules, this would be mitigated by player trading and spend reduction
“Season Ticket sales (including corporate sales) are made at the start of each season and represent the bulk of the Group’s match day revenue. Therefore, in the region of 75% of the Group’s annual turnover will be guaranteed, and in many cases received, by 31st July each year.
“To the extent that there are ever any material variances from the budget leading to a liquidity shortfall, football clubs have the ability to address any potential liquidity risks through player trading during transfer windows.
“In the event that player sales did not generate sufficient funds to cover a liquidity shortfall, the Group would be able to rely on the required financial support from its owners. At the London Stadium, the stadium operator holds the annual safety certificate, however we continue to hold £500 million of public liability insurance in respect of any one occurrence .
“The Club continues to comply with Financial Fair Play (FFP) rules and expects to do so in the future as the new Squad Cost Ratio (SCR) rules are introduced in the forthcoming years. If forecasts indicate that the club may be in breach of the new rules, this would be mitigated by player trading and spend reduction.”
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