West Ham can’t afford relegation after new financial reveal emerges
West Ham’s financial situation seems to be worse than initially expected.
The London Stadium side released their accounts for the 2024-25 campaign, and they show that they made pre-tax losses of £104million.
The East London club revealed on 27 February that they have taken out a £124m loan from Rights and Media Funding and used payday loans for £12m that were due for transfer instalments.
David Sullivan and Co have also utilised a £40m overdraft from Barclays bank, as per the release on Friday afternoon.
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What do the West Ham accounts reveal?
Kieran Maguire summarised the results of the latest financials from West Ham, revealing that revenue was down 16 per cent, going from £270m to £228m.
He also claimed that wages were up nine per cent, going from £161m to £176m in the new set of accounts.
Their costs for player amortisation also rose 19 per cent from £83m to £99m for the 2025-25 campaign and the amount owed to other clubs went up two per cent from £191m to £196m.
Why West Ham can’t afford relegation at any cost
Considering this reveal does not take into account spending for the current season, the Irons’ position could look even worse in the near future, especially if they are in the Championship.
Relegation would surely only increase the lack of financial space that the E20 outfit have and force them to sell star players such as Jarrod Bowen, Crysencio Summerville and Malick El-Hadji Diouf.
The board have been spending money at the level you would expect to see if they were in Europe regularly, but instead they are in relegation battles.
If it goes the wrong way in the final 11 matches, it looks as though the Hammers will find themselves in an extremely difficult position, perhaps even a disaster scenario.
They would need to significantly decrease their spending and wage bill to comply with EFL regulations, and there is no guarantee that they could sell players for the required amounts, and reduce their wages to such an extent.
It is a nervy situation and one that supporters will be keeping a close eye on in the closing stages of the season, as dropping down a division looks like a realistic possibility.
For the latest on West Ham’s finances, check out Football Insider for news and insight.