By Dan Plumley

10th Mar, 2023 | 8:10am

Finance Expert: West Ham United value may drop £100m overnight as takeover news emerges

We’re delighted to welcome football finance expert Dr Daniel Plumley as our exclusive West Ham United columnist. Each week he’ll be giving his views on the biggest talking points at the London Stadium...

Daniel Plumley has insisted that West Ham United would see their value drop by £100million overnight if they are relegated from the Premier League.

The Finance Expert admitted that potential relegation is the “biggest challenge” as Daniel Kretinsky has put his full takeover push on hold for the time being at the London Stadium.

Despite that, Plumley believes that the Irons are a pretty good investment opportunity still, with the stadium deal strong along with their location and fans.

“I think that relegation is the biggest challenge here,” he exclusively told West Ham Zone.

“It ultimately depends on owner motives and we never quite know what negotiations are being undertaken behind the scenes. For me, it’s likely that if you were investing in a club, or you were looking to takeover a club that is flirting with relegation, you would have two prices or scenarios agreed at least.

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“When you kind of run the numbers of that, you could take roughly around £100million off the valuation of West Ham, if they were to get relegated. Now you can look at that and say that makes them a more attractive proposition as a Championship club as it’s a cheaper acquisition, but you don’t realise the value of the club in the Championship, so it is really tricky to balance that.

“The investment proposition of West Ham as a football club is a pretty good one, all things considered, the stadium deal is a good one, and they’ve got the history and the fan base, they’re in London, there’s a lot of boxes to tick for an investor, but it does hinge on where the club are in the league, and I think if there is an option there for a takeover, as an investor, you would want two or three scenarios on there which look at the risk of sporting performance.

“We know that you can put some numbers to it, you can take £100million off the valuation of West Ham overnight if they are relegated and that’s the risk of any investor.”