How much West Ham could save on wages after Premier League relegation clauses revealed
West Ham United could save more than £60million on wages if they are relegated from the Premier League this season.
The Hammers are at risk of losing their top-flight status despite their upturn in form over the past couple of months.
West Ham secured a 1-0 victory over Fulham in their latest Premier League outing last week, helping them pick up 14 points from their past eight games.
Nuno Espirito Santo’s side remain in the relegation zone, but they are now level on points with Nottingham Forest and only behind Tottenham on goal difference.
Relegation would have a dramatic impact on West Ham’s financial situation due to the difference in prize money between the Premier League and Championship.
How much do West Ham spend on wages?
It’s common for Premier League sides to insert relegation clauses in their players’ contracts in case the worst does happen.
They help clubs mitigate the costs of dropping out of the top flight, ensuring the wage bill decreases alongside the inevitable fall in revenue.
The Athletic previously reported West Ham’s first-team squad have 50 per cent salary reduction clauses in their contracts in the event they are relegated to the Championship.
The Hammers released their latest accounts towards the end of February, showing their wage bill increased from £161m in 2023-24 to £176m last season.
Premier League first-team squad’s typically account for around 75 per cent of the overall wage bill, indicating the Irons’ players are paid roughly £132m combined.
The wages are likely to be at a similar level this season, meaning their total could drop by around £66m due to the salary reduction clauses if West Ham are relegated to the Championship.
Why West Ham are set to lose £20m in prize money
There have been plenty of questions asked about West Ham’s finances following the release of their latest accounts.
The documents revealed the Hammers’ revenue dropped from £270m in 2023-24 to £228m last season after finishing 14th in the Premier League.
Finance expert Stefan Borson told Football Insider West Ham are set to lose £20m in prize money as they are expected to finish lower in the table this season.
The most concerning number in the accounts was the Irons' £104m pre-tax loss in 2024-25, having posted a £57m profit the previous years.
That doesn’t bode well for West Ham’s ability to adapt to life in the Championship if they are relegated this season.
However, Nuno’s side have given themselves a chance of retaining their Premier League status following their form in recent weeks.
The Hammers are now preparing to take on Manchester City at the London Stadium on Saturday (14 March), where they will be hoping to move out of the bottom three.