Daniel Kretinsky money effectively saved West Ham from Financial Fair Play (FFP) sanctions claims a board confidant.
West Ham fans will be well aware of FFP sanctions and charges – also known as Profitability and Sustainability Rules (PSR) against facing some of their Premier League rivals at the moment.
Everton have already been deducted 10 points and could be docked further points along with Nottingham Forest following fresh charges over breaching FFP rules this week.
In an exclusive back in November the top source inside West Ham told Hammers News that the club had reached its maximum limit when it comes to FFP rules over wages-to-turnover.
That meant the Hammers must ship players out in the January transfer window before bringing anyone in.
Kretinsky saved West Ham from FFP sanctions
With that as background – and with the likes of Man City and Chelsea also facing potential FFP charges – some West Ham fans were understandably concerned when the Premier League announced clubs facing sanctions this week.
The Hammers were not on that list of course. But it seems they could well have been in a different scenario.
But the Daniel Kretinsky money saved West Ham from FFP breach claims a board confidant.
Sean Whetstone counts vice-chair Karren Brady and majority owner David Sullivan among his contacts.
And he has produced a deep dive explaining how Czech billionaire Kretinsky’s directly prevented West Ham breaching FFP rules after buying 27 per cent of the club back in November 2021.
Had the Hammers breached the regulations like some of their rivals then they too would be facing sanctions.
‘Without it Hammers would have been in breach’
“West Ham announced losses of £26.9m for the 2020/2021 season and a £12.2m profit for the 2021/2022 season with a further loss of £18m last season in 2022/ 2023,” Whetstone said.
“The Premier League FFP rolling three-year monitoring period equates to a combined loss of £32.7m for the Hammers which is well within the £105m permitted losses when directors buy shares as Daniel Kretinsky did in 2021 when he paid £125m for 20% buying 7% from other directors.
“Without that £125m rights issue West Ham would have been limited to £15m losses over three years so would have been in breach.
“In 2020, West Ham directors injected another £30m in a rights issue during the pandemic which allowed them to make £45m of losses over three years in the run up to Kretinsky’s 2021 cash injection. With losses of £32.7m over three years West Ham have a healthy margin of safety of £72.3m in Premier League profitability and sustainability regulations (PSR) or FFP as most people call it. This current season West Ham are able to book the sale Declan Rice £100m sale as straight profit for this season which almost definitely lead to the Hammers declaring a massive profit on the books after the season ends.”
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