West Ham United are having issues on the pitch, but the horizon is also not clear off it. In 2024/25, the club’s finances took a huge swing, as they were released on Friday.
The club lost £104.2m pre-tax, making it the worst financial year in their history, and a huge departure from the £57.2m profit accrued in the season prior.
That, for the most part, was driven by the £100m sale of Declan Rice to Arsenal. Sales profits then dropped, contributing to half of the £161m worsening of the bottom line in numbers last season.
Reduced sales whilst continuing to spend on transfers has been the big kicker for West Ham. On the books last season, the Hammers spent £132.6m on new additions meaning a loss within the accounts was almost inevitable, but the numbers make for stark viewing.
It was predicted that West Ham would lose up to £95m before the accounts were released but it has appeared a bigger number. The club however, are not likely to fall into PSR trouble having not exceeded the loss limit over the course of the last three seasons.
The decline
In the last year West Ham have seen all three key revenue streams decline, whilst spending has increased, with some of it down to the poor performances on the pitch calling for the club to act in change of management and player purchases.
Unless you are a global brand, such as Manchester United and Arsenal, broadcast revenue is hugely important. For West Ham, they saw this revenue stream decline by £34.6m last season, as a consequence of a 14th placed finish and no European football.
Lack of Europe did not just contribute to just television money, but to gate receipts too. £39.3m made after a 12% drop in gate receipts. Simply put, less important games, less attendance.
Despite the upcoming potential case, West Ham enjoy a very favourable deal on their London Stadium. The 62,500-seater stadium offers an opportunity for a hefty profit, yet the club struggle to maximise it’s potential despite having the second-highest average Premier League attendance yearly. Despite this, the club only makes the eighth-highest money from gates in the division.
Underlying operating performance is another area where the numbers make for difficult reading. At one point in the last three years the club was making £19.1m from this area and is now losing £104.8m as of last year. Wages is one of the big jumps, leaping from from 54% of revenue to 77%.
Wages, up to £175.9m, has increased for the sixth consecutive year. In 2024/25, West Ham had he 10th-highest wage bill in the Premier League, making a 14th placed finish significant underperforming. That number will not have decreased this season, making the club’s relegation fight all the more difficult to veiw.
Over the last couple of years, the club have made significant investment in several areas, but those areas are not repaying their cost. The playing squad as a whole has cost West Ham a hefty amount. In the last four season’s the club have spent £292m – £88.7m last season – whilst failing to make sales anywhere near that of Rice’s move across London.
What’s increasingly worrying is that the club have taken their financial hit on themselves, continuing to fund West Ham via themselves. Last season the club took on £20m of new debt, over £16m of which in the form of a high interest overdraft.
Ownership
There has been no injection of cash from ownership in this time, despite losses.
Not since 2021, when Daniel Kretinsky’s group took a 27% stake in the club, investing £123.6m into the club has their been any monetary investment into the club. Around half of that money was used to repay existing shareholder loans.
As of May last year, West Ham’s debt stood at £20.8m. After bringing some transfer payment forward, the club took out a five-year, £125m loan. Should the club continue on their current predicament, their debt could be over £100m by the end of this season, making relegation an even more bleak prospect.
Should West Ham fail to raise their league position and funds, their debt would only be beaten by Everton, Manchester United and Tottenham Hotspur. Unlike those clubs, West Ham have not built a stadium in recent years, or have a global brand to lean on, their debt is simply from operating costs.
The Athletic reported (prior to the accounts being published) that the club would need to manage it’s cash carefully, being confirmed in the accounts. With operating costs, it takes time to bring them down, meaning funds need to raised elsewhere, and player sales is the quick option.
Player sales
Looking at the numbers it is hard to find a way West Ham will not have to sell some members of their playing squad, with or without Premier League status, though remaining in the top flight will ease woes.
The £36.5m sale of Lucas Paqueta to Flamengo is not included in the accounts, so the amount of departures is yet to be determined, after that deal went through in January, after the books were sent.
Relegation would certainly increase the factors, with Jarrod Bowen, Mateus Fernandes, Crysencio Summerville and El Hadji Malick Diouf would all be likely asset’s to leave the club.
Staying up is hugely important, with or without recent spend. The current squad cost £481m to compile, roughly the same as Bayern Munich’s did. That’s not acceptable in a relegation fight, let alone in the Championship.
