Why West Ham are closer to signing Harry Souttar now than they were yesterday

West Ham United may now have their chance to strike a deal for Harry Souttar.

Nuno Espirito Santo has finally secured his first signing of the summer, with veteran full-back Joel Veltman arriving on a free transfer this week.

The 34-year-old is a right-back by trade, but he can also operate in central defence if required.

However, Leicester City star Souttar has been heavily linked with West Ham for a number of weeks, and appears to be the Irons' priority target at the centre-back position.

The Australian international has been with the Foxes since January 2023, but a number of serious injuries have significantly limited his playing opportunities over the last couple of years.

But he's a proven performer at Championship level, and so it's no surprise that the 27-year-old is the subject of significant transfer interest this summer.

Journalist reveals Harry Souttar setback for West Ham transfer rival

During the first half of the 2024-25 season, Souttar spent some time on loan in the Championship with Sheffield United.

Chris Wilder, as he is now, was in charge at Bramall Lane that term, and Souttar played very well for the Blades in his 21 second-tier outings for them.

So, following Leicester's relegation to League One for the 2026-27 season, the Foxes are having to sell a number of their star players and top earners this summer, and Souttar is both of those.

As a result, Sheffield United have again been heavily linked with reuniting with the Australian, but face competition from the likes of West Ham.

And now, as revealed in an X post from widely-respected BBC Sheffield journalist Rob Staton, he's detailed some of the things Wilder has confessed to in a recent interview.

One of those things was Wilder admitting to Sheffield United having a bid turned down for an unnamed player, but Staton has revealed that this is Souttar.

So, depending on how strong of an offer it was, this could knock the Blades out of the running for the defender, potentially boosting West Ham's chances of winning the transfer race for him.

But can Sheffield United compete financially with West Ham for Souttar, and what is their parachute payment situation?

Why Sheffield United are in a perilous financial position

Sheffield United are a big club at Championship level, but their spending power is limited at present.

After being relegated from the Premier League in 2023-24, Blades have now had their two years of parachute payments, with that financial support now ending for them this summer.

On top of that, their former owners United World have this summer filed a winding-up petition against Sheffield United's current owners COH Sports Bidco Limited, claiming that they're owed in excess of £35million.

Depending on the outcome of that, Blades' coffers may be further weakened significantly, and so they're having to be careful how they spend their money this summer.

Indeed, Blades have so far signed Romelle Donovan on loan from Brentford, as well as the free agent signing of Matt Doherty from Wolves respectively.

Therefore, West Ham, armed with a number of big-money sales as well as parachute payments, should be able to financially outmuscle Sheffield United in the race for Souttar.