Sean Whetstone has explained the fine detail behind the latest Hammers News transfer update from inside West Ham.
Hammers News brought you an exclusive January transfer window update from inside West Ham last month.
The top source at the club revealed that West Ham are tracking targets for January.
The Hammers contact said a key issue was clearing squad space while also raising funds to satisfy FFP.
In a new exclusive this week, the Hammers contact made it clear players simply must be sold to facilitate new arrivals as the club is at its FFP wages-to-turnover limit.
But what does that actually all mean?
Whetstone explains fine detail behind transfer update
Now Sean Whetstone has explained the fine detail behind that Hammers News transfer update from inside West Ham.
Whetstone counts vice-chair Karren Brady and majority owner David Sullivan among his contacts.
He is also a dab hand at unpicking the financials at West Ham.
And following our report on the wages-to-turnover issue, Whetstone has provided more depth to the West Ham equation of balancing the books.
“This would limit transfer fees to around £8m unless…”
“West Ham will need to balance the wages/turnover ratio this January to avoid breaching UEFA FFP regulations,” Whetstone confirmed.
“Rules say that spending on wages, transfer fees and agent fees must be below 80% of the club’s turnover.
“The Hammers are likely to have a turnover in excess of £200m this season depending on where they finish in the league and progress in cups including the Europa League.
“At £200m this would allow around £160m spending, with wages around £140m and agent fees around £12m this would limit transfer fees to around £8m in the winter transfer window unless the wage bill is trimmed.
“In reality some fringe players will be offloaded to both raise transfer funds and reduce the wage bill in January to fund any incoming additions and stay within the European regulations.”
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