Less than a week ago West Ham were valued at a whopping £2.2bn but now the club’s financial situation is so grim it is forcing a desperate move.
New West Ham boss Graham Potter may already be wondering why he joined the club.
Because the prospect of him being given the funds to rebuild the Hammers is looking increasingly bleak.
Seven months ago West Ham were embarking on an ambitious £155m summer spend.
Nine players arrived and the club seemed to looking to really kick on.
The failure of that rebuild is perfectly highlighted by the current Premier League table.
West Ham sit 16th with 13 games to go and the only reason they are not in a relegation battle is because the three teams at the bottom are so far adrift of them.
The aim at the start of the season was to compete for a European place again.
But the Hammers have flopped spectacularly in one of the most open Premier League seasons of the last 15 years.
£2.2bn West Ham chase bargain deals
The only reason there is not more focus on West Ham’s struggles is because Spurs and Man United have been just as bad.
After appointing Potter, there was a brief glimmer of hope through the gloom.
Spirits and performances lifted and fans started to get excited about West Ham again.
Especially when recruitment guru Kyle Macauley was reunited with Potter after the Hammers paid Chelsea £1.2m to bring him across London.
‘Just imagine what Potter will do with the team once he gets his own players in’ was the consensus of opinion among West Ham fans.
Evan Ferguson has arrived but it is only a loan and word is West Ham can’t afford to make that deal permanent.
Now it seems that should have been the first big warning sign of what is to come.
They say desperate times call for desperate measures.
Well the Irons are certainly that.
Grim finances force desperate move
Because £2.2bn West Ham are chasing bargain deals as grim finances force a desperate move.
West Ham are officially the 17th richest club in world football in terms of income.
The east Londoners are also the Premier League’s third wealthiest in terms of ownership net worth.
Then last week David Sullivan confidant Sean Whetstone claimed West Ham could now be worth an eye-watering £2.2bn using a comparative multiplier formula for valuing football clubs.
Football finance expert Kieran Maguire has claimed that The Multivariate Model, developed by Tom Markham in 2013, has seen its day and was no longer an accurate of valuing a football club.
Whetstone claimed that using the formula and West Ham’s turnover of £268m values the Hammers at the huge amound.
Even using Manchester United’s recent partial sale as a guide, it values West Ham at a nearly £1.75bn.
Yet now, less than a week after that revelation, West Ham are facing big losses, PSR difficulties, player sales, scraping the transfer barrel and a move to squeeze money out of fans to ease cashflow problems.
Money is going to be so tight at West Ham this summer, Hammers News understands the club is looking at players who will be entering free agency at the end of the season.
Lille and Canada striker Jonathan David has been linked for several windows ahead of being out of contract this summer.
But that is pie in the sky stuff given half of the European want the forward – including his dream club Barcelona.
So West Ham fans should forget that as a potential incoming straight away.
Hammers want season ticket money earlier amid big losses
His Lille teammate Angel Gomes and other midfielders such as Marco Verratti and Josh Brownhill have all been linked with West Ham ahead of becoming free agents.
Full-backs Kyle Walker-Peters, Tariq Lamptey, Ola Aina and Tyrick Mitchell, strikers Callum Wilson and Dominic Calvert-Lewin and goalkeeper Alex Meret are just a few other notable soon-to-be free agents who have been linked with the Hammers too.
The focus on bargain basement deals comes as West Ham face big losses.
Whetstone claims West Ham’s turnover is likely to tumble this season as the financial effects of not being a European competition are felt.
Losses for this season are expected to be around £60m and could be as high as £80m.
West Ham gave up £4m to borrow £65m of £69m owed to them by other clubs for transfers in a deal with Barclays Bank to fund last summer’s spending.
Now it is claimed that decision and the looming losses will lead to cash flow challenges.
And things are apparently so bad that the club’s owners have leaked that the season ticket renewals will be brought forward TWO MONTHS to April to try and ease money struggles.
Whetstone revealed that renewals for next season are likely to now open in early April with an earlier deadline than June or July as it has been in previous years.
Not only that, Whetstone claims a further rise in prices of up to five per cent is “inevitable”.
“It would be a surprise if season ticket prices are frozen for next season and a rise between 2% and 5% is almost inevitable considering the financial challenges facing the club,” Whetstone said.
“Official announcements on the renewal window are likely to be made next month by the club with the renewal window most likely opening in early April.”
What a desperate situation.
West Ham have blamed PSR and a lack of European football after it emerged West Ham face difficulties in spending for Potter this summer.
But the Hammers simply shouldn’t be in this situation in the first place.
A penny for Potter’s thoughts.
Receive a digest of our best West Ham content each week direct to your mailbox
