Exclusive: Key club figure on West Ham’s summer transfer budget and the big PSR issue

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Exclusive: A key senior figure at West Ham has lifted the lid on the club’s summer transfer budget and the big PSR issue.

The summer window opens in just over two months and West Ham have plenty to do.

A host of players look set to depart the Hammers as their contracts expire.

And West Ham already need to strengthen the first team in a number of areas.

Many West Ham fans were understandably angry when the club failed to spend in January. Only Kalvin Phillips arrived in a loan deal from Manchester City while the likes of Said Benrahma, Pablo Fornals and Thilo Kehrer departed.

But West Ham’s lack of business was put into context by the fact it was an unprecedentedly barren transfer window across Europe.

West Ham facing busy summer window

It then became perfectly clear why as points penalties were dished out to Premier League rivals for breaching profitability and sustainability rules.

Those PSR rules look set to be replaced as early as this summer by a new system of financial regulation.

Said new system will be aligned with the squad cost-to-revenue ratio contained within UEFA’s Financial Sustainability Regulations (FSR).

I spoke to football finance expert Kieran Maguire about what the new rules might mean for West Ham.

Now I have word from the horse’s mouth having spoken to the senior contact inside the club.

Senior source inside West Ham says there is money to spend

The key club figure has spoken about West Ham’s summer transfer budget and the big PSR issue.

The good news is that the senior source says Hammers technical director Tim Steidten and the manager will have money to spend.

But it is the way PSR restricts clubs on wages which will make life difficult for clubs like West Ham.

“We will have a bit of money,” the key figure exclusively told Hammers News.

“And if we sell players that will add to the kitty for transfers.

“The huge problem is wages.

“They must not exceed a certain percentage of turnover and that includes players, managers and amortisation over the contract of players bought.”

Sales could seriously beef up kitty

When a player is purchased, his cost is capitalised on the balance sheet and is written-down – known as amortisation – over the length of his contract.

In layman’s terms, transfer fees for accounting purposes are spread over the length of a players’ contract.

For West Ham the potential sale of star man Lucas Paqueta to Man City for a reported fee of £85m would clearly beef up the club’s spending power. Not to mention offloading ageing or fringe players.

But the Hammers would need Steidten to pull off more coups to replace such an influential player as he did in getting Mohammed Kudus and Edson Alvarez with the Declan Rice money.

In promises to be an intriguing summer window ahead.

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