West Ham set for £234m budget after PSR overhaul confirmed
New Hammers budget. ⚒️
From next season, the PSR environment that West Ham and their peers in the Premier League operate in is set to change radically.
Under the current PSR (Profit and Sustainability Rules) model, West Ham are allowed to lose no more than £105m over a rolling three-year period.
West Ham were place on a watchlist by UEFA, who have their own separate system of spending rules, for their financial projections in 2022.
But since then, the East London’s trajectory has been far more promising in terms of PSR, thanks in large part to three successive season in Europe.
We will not have access to their accounts for 2023-24 until early next year, but the club are expected to break their revenue record, which currently stands at £253m.
West Ham to be subject to new squad cost rule
Ahead of the current season, Premier League clubs agreed to shadow-trial a new PSR system that ties spending to revenue as opposed to profit or loss.
Essentially, the system has been introduced on a non-binding basis and is expected to be formally voted through at the Premier League’s AGM next summer.
The new model, which mirrors UEFA’s approach, will limit clubs to spending 85 per cent of turnover on wages, transfers and agent fees.
West Ham journalist Sean Whetstone, who goes by West Ham Football on X, says that the club’s top brass are concerned that they will be forced into ‘tough decisions’ when the new PSR structure is in place.
TBR Football understands that the expectation within the industry is that West Ham will post revenues of around £275m for the 2023-24 campaign.
A crude analysis therefore shows that their playing budget – wages, amortisation and agent fees – for a single season based on those figures would be £234m.
West Ham and the independent regulator for English football
One factor that is likely to influence West Ham’s future financial landscape is the implementation of an independent regulator for English football.
The club’s vice-chair Karren Brady is a fierce critic of the regulator, as are many officials from Premier League clubs.
The regulator is also likely to have the power to control the flow of money from the top flight to the EFL.
Stakeholders in the Championship and beyond are lobbying for a ‘new deal for English football’, which would see West Ham forced to contribute to increased solidarity payments to the pyramid.
What's Your Reaction?
