West Ham are at risk of insolvency according to Juventus chairman Andrea Agnelli.
The Juve chief was speaking to the media today and mostly fielded questions about the failed attempts to get the European Super League off the ground.
And strangely enough, when discussing the crippling financial crisis caused by the global pandemic, Agnelli name-checked West Ham, as quoted by Calcio Mercato:
“Two topics that I would like to introduce before leaving room for questions. The Board has estimated the effects of the pandemic over the three-year period at €320m, based on this the guidelines for the capital increase up to €400, have been defined. They estimate the need for liquidity within the system to be €8.5 billion. It is estimated that 30-40% will be managed by capital increases, 15-20% are at risk of insolvency. I am thinking of Barcelona, Inter, West Ham, Porto.”
It’s not often that we get mentioned alongside Barcelona, Inter Milan and Juventus is it now!
And in typical West Ham style, it’s all for the wrong reasons.
But is there any truth in what Agnelli said?
Are West Ham at risk of insolvency?
Well, we all know that the Hammers have plenty of debts.
By sheer definition, however, insolvency means the inability to pay ones debt. And to suggest that West Ham will not be able to do that is simply not true.
We have plenty of sellable assets for a start. So if there was really danger of insolvency, David Sullivan and David Gold would surely cash in on those assets.
And that is why we are all so worried about Declan Rice. The owners wouldn’t think twice about selling the 22-year-old if a big bid comes in.
For the year ending March 2020, turnover was down in excess of £50 million whilst broadcast revenue took a £44 million dive.
There are obviously holes that need to be filled. We did finish 6th in the Premier League table last season, however. So the prize money garnered from that and a European tour next season will surely help out with our finances.
And here’s to hoping that Agnelli is well wide of the mark with his insolvency claims.