Play Off Victory Gives Irons Big Cash Boost - 30/05/2005

West Ham fans will be delighted at their club's return to the Premiership after a two year absence following their play off victory over Preston. But it will also mean a much needed cash boost for the club which had been the subject of rumours that it could go into administration if it failed to return to the top flight after the end of parachute payments. Quite how much money the match billed as the most lucrative fixture in the galaxy (well, anyway, this side of Titan) will make for the Irons is open to debate with figures between £20m and £30m being quoted. Gate money is in fact the biggest earner for Premiership clubs so a lot depends on ticket prices at the Boleyn Ground and making sure it sells out. However, West Ham can expect to get around £9 million per season from the Sky TV deal, plus £6.5m from overseas rights. They can probably count on £2.5m for live match fees and a handy half a million will come in from central sponsorship. Merit payments bring in £475,000 a place and then there is the enhanced revenue from merchandise and perimeter advertising. Taking into account gate receipts of £25m, the average income for a Premiership club in the bottom half of the table is £50m. West Ham's staff costs are around £12m a year, but it does have a worrying debt of £25m. What is clear is that the financial gap between the Premiership and the Championship is widening, although parachute payments ease the pain of going down. Unlike many other promoted clubs, West Ham have a reasonable chance of staying up.