The figure of £90m is frequently bandied around in relation to clubs winning the Championship play off final, often accompanied by the much dusted down headline ‘the richest game in the world’. In fact, as has been pointed out in earlier posts, the £90m figure is often an exaggeration because of the assumptions it makes and double counting. It is also a gross figure which does not take into account the need to spend to stay up.
The figure of £90m is frequently bandied around in relation to clubs winning the Championship play off final, often accompanied by the much dusted down headline ‘the richest game in the world’. In fact, as has been pointed out in earlier posts, the £90m figure is often an exaggeration because of the assumptions it makes and double counting. It is also a gross figure which does not take into account the need to spend to stay up.
West Ham United offer a case in point. They will get about £56m because the club’s immediate return to the top flight means that they will not continue to receive parachute payments. The club’s wage bill this season is already £32m and the owners will have to inject £25m into the club this summer to cover debt repayments and losses. Even before new signings are made, the money has effectively gone, although they would still have had a big wage bill pressing for promotion if they had not won the final.
The club have liabilities of between £80m and £90m. That figure includes about £8m owed on transfers, £5m to Sheffield United because of the Carlos Tévez affair and £5m to cover ticket income that was sold in advance. It is hoped to repay the debt within four years.
If West Ham United stay up, and they should be able, they can then start to rebuild with confidence for the long term.
Whilst this page strives to be neutral between clubs, I would like to add a personal note of congratulation. My father went to the famous first FA Cup final at Wembley and played his non-league football for a predecessor of East Ham United.