- West Ham United will start next season as a Championship club for the first time since 2011
- Nuno Espírito Santo will remain in charge
- The Portuguese coach will have to take a 50% pay cut, according to Christian Purslow
No one at the London Stadium seems immune to the financial consequences as West Ham United prepare for life in the Championship.
Following crisis meetings with the board, the Hammers announced this week that head coach Nuno Espírito Santo will remain in charge despite the club’s relegation from the Premier League, putting an end to days of doubt surrounding his future.
However, the financial realities of Championship football are already starting to bite, even though the Portuguese boss seems dedicated to guiding West Ham back to the top flight.
Nuno Espírito Santo set for 50% pay cut according to ex-Aston Villa CEO
Given Nuno stays in charge for the upcoming season, he may have to take a startling 50% wage cut, as the club plans to implement an “aggressive” promotion-based compensation incentive pay structure, according to former Liverpool and Aston Villa chief executive Christian Purslow.
Speaking on The Football Boardroom YouTube channel alongside journalist Henry Winter, Purslow believes that the club cannot afford to keep Nuno at his present wage, which is estimated to be between £7 and £8 million annually.
“There’s no way they could sustain a basic £7m to £8m salary in the Championship,” the 62-year-old businessman said.
According to Purslow, West Ham may reduce Nuno’s base salary to between £3 and £4 million while rewarding him with large bonuses if he is promoted back to the Premier League instantly.
In how would go about addressing a wage cut to Nuno, he said: “Yes, we can’t meet your terms on basic pay, but maybe there’s a way with an aggressive payment structure to reward you if you get us out of the championship quickly.
“The average Championship manager’s salary is in the high hundreds of thousands to millions, no way he’s staying at that level. Maybe a 50 per cent reduction to £3m or £4m at basic pay.”
Championship consequences expected to be felt across the club
The size of the club’s post-relegation financial situation is reflected in the suggestion. In addition to a sharp decline in sponsorship and matchday revenue, broadcast revenue is predicted to plummet from around £120 million to approximately £55 million. Next season, overall turnover may decrease by almost £100 million.
Major sales are anticipated this summer to help balance the budget, and it is already known that West Ham’s players’ contracts include automatic 50% salary cuts upon relegation. Jarrod Bowen and Mateus Fernandes are obviously drawing a lot of attention after the drop, and the club is reportedly aiming for player sales of up to £150 million.
The leadership team of West Ham seems committed to supporting Nuno as the figure in charge of a significant rebuild. The former Wolverhampton Wanderers manager has previous Championship experience, having guided the Molineux club to promotion with 99 points in 2018 – expertise that the Hammers will rightly believe can now help them bounce back.
