January 8 – West Ham United may be in crisis on the pitch as they consider whether to fire Julen Lopetegui and hire ex-Chelsea and Brighton coach, Graham Potter, however off the pitch all is rosy in the financial department.
In accounts covering the 2023/24 season where they finished a disappointing ninth in the table but reached the quarter-finals of the Europa League and Carabao Cup, the club delivered a £57 million pre-tax profit, which represented a £75 million improvement over the previous year’s £18m million loss, mainly due to profit from player sales surging from £17 million to £96 million.
Overall revenue also rose from £237 million to £270 million, which translates into a 14% increase which shattered the previous revenue record. Operating expenses did grow by 20% from £256 million to £307 million, which was an increase of £51 million.
As is the case with any top-flight club in England, TV money was the catalyst for financial health. Broadcast revenue rose £19 million (13%) from £148 million to £167 million, but there were also good increases in commercial, up £10 million (21%) from £48 million to £58 million, and match day, up £4 million (9%) from £41 million to £45 million. All three revenue streams set new highs for the club.
On the back of their stunning and unexpected triumph in the Europa Conference League the previous season, the Hammers invested heavily in upgrading the squad which led to growth in both wages, which rose £24 million (18%) from £137 million to £161 million, and player amortization, up £18 million (28%) from £65 million to £83 million.
The sale of Declan Rice to Arsenal in a deal worth £100 million ($131million) plus £5 million ($6.5 million) in add-ons greatly enhanced the bottom line, still a £57 million pre-tax profit has only been surpassed by Brighton (£133 million) and Manchester City (£74 million).
Whether this trend can continue is completely dependent on the club’s ability to stay in the Premier League. At the time of writing, the Irons only sit seven points clear of the relegation zone, leading to talk of Lopetegui’s impending departure.
Contact the writer of this story, Nick Webster, at moc.l1736374247labto1736374247ofdlr1736374247owedi1736374247sni@o1736374247fni1736374247