Amongst all their various financial headaches, [West Ham](https://www.claretandhugh.info/overdue-accounts-spark-psr-breach-fears-at-london-stadium-west-ham-news/) needs to remain within £105m losses over three years for the end of this 2025-6 season, as the final season of PSR regulations: Many fans have been speculating that such a poor financial situation may lead to the dreaded points deduction as other sides have suffered.
Even though West Ham lost £104m last season, they are still within the current PSR rules, which allow £105m of losses over three years.
West Ham made a profit of £57m two seasons ago after a loss of £17m three years ago, leaving a net loss of £64m last summer and **well within the PSR limits for last season.**
At the end of this season, West Ham’s losses must stay under £58m to avoid breaching the final period of PSR before ‘SCR’ (‘_Squad Cost Ratio_‘) takes over next season.
If West Ham are not relegated next season, SCR replaces PSR
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This will restrict clubs to 85% of spending on wages, player amortisation and agent fees.
With a turnover of £227m last season for West Ham, 85% would equate to just under £193m – if West Ham avoids relegation.
With players’ wages estimated at around 75% of the total £176m wage bill (£132m), amortisation of £99m and agent fees of £19m, the total £250m is way above the £193m allowed, and West Ham would need to rely on a three-year allowance of 30% to keep within the new limits.