WEST HAM owner David Sullivan had admitted the club faces “serious financial consequences” if they are relegated.
Unveiling the Hammers’ latest financial figures, showing a record loss of £28m, Sullivan conceded staying in the Prem was an “absolute necessity” with severe repercussions if new boss David Moyes cannot get them out of their tailspin.
David Moyes’ side are 17th in the Premier League after 23 gamesCredit: Reuters
West Ham face champions-elect Liverpool twice in their next four games, as well as matches against Manchester City and relegation rivals Brighton.
But in notes he wrote to accompany the financial results in October – and which, by law, cannot be changed despite events in the interim – Sullivan painted a picture that will bring home the scale of the chaos that could engulf the club if they are unable to secure another term in the top flight.
In his statement, Sullivan said: “The club’s board made a decision at the start of 2018 to embark on an investment programme, bringing in a world-class manager, investing in better players and making significant investment in the club’s infrastructure.”
That meant the appointment of Manuel Pellegrini, with Sullivan stating West Ham spent an initial £109.7m on transfer fees and grew the first team wage bill to £135.8m.
This summer, added Sullivan, a further net spend of £35.8m brought the arrivals of £45m Sebastian Haller and Pablo Fornals with the owner predicting at the time “we have one of the strongest squads and management teams in the Premier League”.
West Ham suffered a 1-0 defeat to West Brom in the FA CupCredit: PA:Empics Sport
Yet the early autumn optimism has long since gone, along with the sacked Pelligrini and his backroom staff, with the initial burst from Moyes’ arrival having been replaced by a backdrop of crowd dissatisfaction.
The Hammers face Liverpool tomorrow only out of the drop zone on goal difference, with a four goal defeat enough to see them drop below Bournemouth.
And in the report, the club conceded that relegation is West Ham’s “principal business risk”, with survival “an absolute necessity for the future well-being of the club”.
It adds: “The group prepares budgets three seasons in advance which includes an evaluation of the impact of relegation and associated contingency plans.
“The Board identifies mitigating actions…. as a result of relegation from the Premier League.
“Mitigating actions include alternative sources of loan finance, the option of player disposals to generate transfer income and wage savings as well as support from its investing owners.”
That hints at a fire sale should the worst materialise, coming after the club has spent a net £214.4m on players over the past four years.
While turnover rose in 2018-19 by £15m to £190.7m, that was more than offset by the transfer loss and extra wages.
The club has also invested £22m on training infrastructure at its new Rush Green base and spent £2m on the women’s team, while this season’s figures will be impacted by the costs of firing Pelligrini and his support staff and hiring Moyes.
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Source: Soccer - thesun.co.uk
