Exclusive: Top football finance expert Kieran Maguire has spoken to Hammers News to explain what new PSR rules will mean for West Ham.
Many West Ham fans were angry when the club failed to spend in January.
West Ham’s quiet window was put into sharp context, though.
Not only against the backdrop of points penalties being dished out to Premier League rivals for breaching profitability and sustainability rules.
But through a lack of transfer activity across Europe too.
New Premier League PSR rules set to come into effect this summer
It is being reported today that the Premier League’s controversial PSR rules look set to be replaced as early as this summer by a new system of financial regulation.
That new system will be aligned with the squad cost-to-revenue ratio contained within UEFA’s Financial Sustainability Regulations (FSR).
West Ham have competed in Europe for the last three seasons and are – at present – on course for a fourth.
It is reported the new regulations will eventually limit clubs participating in European competitions to only spend 70 per cent of revenue on transfer fees and player wages.
What do new PSR rules mean for West Ham?
Although not yet official, the new rules are expected to be ratified at a meeting in June.
Unless you have a talent for numbers it’s tough to get a grasp on what that might actually mean for West Ham from this summer.
Thankfully for Hammers fans I know just the man for the job.
Speaking exclusively to Hammers News, top football finance expert Keiran Maguire has explained what new PSR rules will mean for West Ham.
Maguire is the author of the excellent Price of Football books and co-host of the podcasts by the same name.
And he says that while West Ham ‘will not be in a fantastic position’ under the new rules, the club will likely have a bit more wiggle room to spend especially as they feel the benefits of the Declan Rice sale and playing in Europe.
Football finance expert delivers his verdict for Hammers News
“As far as the new rules are concerned for West Ham, I don’t think it will make a significant amount of difference,” Maguire told Hammers News.
“And the reason why I say that is that the owners weren’t particularly keen on taking the club close to the limit because they wanted to try to run it in a more sustainable manner.
“And clearly looking at my projections, they would not be in a fantastic position with regards to PSR. But my calculations are very crude because I’m looking at historic data and I’ve had to make a few assumptions.
“But I think actually the club might have more wiggle room. What I was trying to get was a general flavour for who are likely to be the winners and losers as far as the new rules are concerned.
‘Hammers will feel benefits of Rice sale and Europe’
“And remember West Ham this season are in the Europa League so have got the benefit of extra money coming in from that and they’ve got the sale of Declan Rice – that would go into the calculations as well.
“So the figures are not as bad – I did the exercise just to get a broad indication of why the big clubs are probably in favour of this because they’re already in such a strong financial position.
“I don’t think it will stop West Ham from buying especially given that under the UEFA rules you’re able to take – from your player sales profits – either one year’s figures or the average of two or three years and the Rice benefit could be of substantial benefits to West Ham for period of time.”
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