West Ham could be staring in the face of points deduction, huge losses being announced
West Ham are facing huge financial ramifications if they are relegated to the Championship following their poor start to the season.
West Ham were beaten 1-0 by Fulham on Saturday (27 December), with Raul Jimenez’s late goal leaving Nuno Espirito Santo’s side five points from safety in the Premier League relegation zone.
The difference between playing Premier League and Championship football is seismic for a club like the Hammers, having spent the past 13 years in the top flight.
West Ham are in line to lose more than £60million in revenue if they are unable to avoid the drop this season.
Meanwhile, official club documents could be about to reveal even bigger issues at the London Stadium.
Why West Ham are set for £100m+ blow
West Ham insider Sean Whetstone reported on Tuesday (30 December) the Hammers will soon publish their accounts for last season, showing losses of more than £100m.
“The cost of poor recruitment decisions (high amortisation and high wages) and a merry-go-round [of] managers is catching up on the Hammers after publishing a £57m paper profit two seasons ago thanks to the sale of Declan Rice,” said Whetstone.
“This season is on target for similar losses, making relegation potentially financially devastating for the Hammers.”
The anticipated heavy losses are a sign of just how quickly things can change when results on the pitch decline.
West Ham posted a club-record revenue in their latest published accounts for 2023-24 after their turnover surged from £236.7m in 2022-23 to £269.8m.
That was driven by their improved position in the Premier League, having finished ninth in David Moyes’s final season at the London Stadium, as well as higher European income.
However, the Hammers ended 2024-25 in 14th spot under Graham Potter, who replaced Julen Lopetegui in January.
Why West Ham could be set for points deduction
If West Ham’s losses were in excess of £100m last season and are set to be at a similar level for the current campaign, the situation is incredibly troubling for the club.
Under the Premier League’s profit and sustainability rules (PSR), top-flight sides are only permitted to lose £105m over a rolling three-year period.
The Hammers’ £57m profit for 2023-24 will offset the £17m loss for 2022-23 and last season’s deficit at the London Stadium.
However, another major financial loss this season – alongside relegation to the Championship – could quite easily lead to a PSR breach and a points deduction.
While a £35m loss is allowed per year in the Premier League, that drops to £13m a season in the second tier.
Leicester City were charged in May with an alleged breach of the EFL’s financial rules for 2023-24 – the year they secured promotion back to the Premier League.
Finance expert Stefan Borson told Football Insider Leicester are likely to receive a six-point deduction after their case was heard last month.
West Ham could be facing a similar fate if they are relegated this season due to their apparent financial crisis at the London Stadium.
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