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J.Riddle 8:50 Wed Mar 8
West Ham to earn £250 million this season!

West Ham to earn £250 million this season (£142m last year). Should take us up from 18th to 14th richest club in the world behind PSG.

That's £108m+ £25m for Payet banked! £133m How much of that will get spent in the summer to compete with the top 6 ????

c/o C&H Sean Whetstone

West Ham posted record figures last month for last season showing turnover had reached £142m, leap frogging both Everton and Newcastle in terms of financial power.

However, this season’s figures will blow last season’s figures out of the water as West Ham smash through the two hundred million barrier on their way to a quarter of a billion pounds turnover.

This season’s accounts will show the sale of the Boleyn ground for £38m, the first year’s revenue of the new mega bumper TV rights deal worth as much as £128m for matching last season’s seventh spot in the Premier League but worth £122m for finishing in tenth.

Ticket sales at the London Stadium are expected to rise by £13m to around £40m as the number of season tickets doubled after capacity was increased from 35,000 to 57,000.

You would reasonably expect commercial and sponsorship revenue to rise by another 30% to around £25m after the move to the London Stadium and retail should hopefully double to £19m after moving into the new, improved and enlarged mega store.

Incredibly the club’s turnover for the year ending 31st May 2017 could come in at a staggering £250 million when it is finally revealed in February 2018.

and..

According to the Daily Star wage bill West Ham's is £79.8m here

http://www.dailystar.co.uk/sport/football/594867/Premier-League-wage-bills-2016-2017-Arsenal-Liverpool-Manchester-United-sportgalleries

Also Debt is £52m here

https://www.whufc.com/sites/default/files/inline-files/WH%20Holding%20signed%20stats%2031.5.16%20Final_0.pdf

Page 21 total shareholders deficit £52m (£49.2m of this loans from G&S, page 44 note 34)

Stranded 6:24 Thu Mar 16
Re: West Ham to earn £250 million this season!

Say what you like about the portacabins, but I bet that job lot of pub benches cost a pretty penny.

franksfat&slow&wank 6:23 Thu Mar 16
Re: West Ham to earn £250 million this season!

surely an established right back now then

and a striker that can score goals

Side of Ham 6:22 Thu Mar 16
Re: West Ham to earn £250 million this season!

Fucking Hell Willtell doesn't half know how to make a right Titmarsh of himself these days.

LeroysBoots 6:18 Thu Mar 16
Re: West Ham to earn £250 million this season!

Nice to see that the portakabin is alive and well at West Ham's new training ground

http://dailym.ai/2n1cgDy#i-2f83d69eebdfc135

LeroysBoots 12:58 Sat Mar 11
Re: West Ham to earn £250 million this season!

2bob even

LeroysBoots 12:08 Sat Mar 11
Re: West Ham to earn £250 million this season!

Whatever we have or don't have in terms of finances we are still a fucking tinpot bob club run by shysters

Willtell 11:47 Fri Mar 10
Re: West Ham to earn £250 million this season!

What's your problem arsegrapes? I've tried to explain where you are talking out the back end of your piles and you clearly don't like it.

Funnily enough I have been "gardening" today. I cut a 50 year old cedar tree down, removed the stump, removed all teh branches which I set fire to and moved the trunk with my tractor. Then moved several tons of top soil to cover the stump which was cut to ground level as well as educating you and your name is wrong actually. It should cunt grapes...

arsegrapes 9:20 Fri Mar 10
Re: West Ham to earn £250 million this season!

Wittell 8:37 Friday 10th March
In short we should expect a lot of purchases and a £100m spend on players this summer is not as outlandish as it may sound. It is probably easily achievable...

I'm not an accountant btw but was a director for 35 years and learnt the hard way.

So after all your voluminous posts you have come to the same conclusion as the report in the OP, that £100m+ should be available to spend on players this summer. I can't say it surprises me that you are not an accountant Chartered or otherwise, best stick to gardening or whatever goes on in the nether regions of France.

Willtell 12:04 Fri Mar 10
Re: West Ham to earn £250 million this season!

I think all the tales of Chinese clubs bidding £32m for AC are setting up for some big offers from China in the summer and to get AC used to the idea...

Then with selling Valencia and Sakho, plus getting offers or releasing Nordtveit, Byram, Calleri, Arbeloa, Collins and Fletcher frees up some space for several high profile signings.

So the fact that we are talking to 34 years old Sagna on a free and a £5m St Etienne RB suggests that DS can't help himself Comma...

, 11:41 Fri Mar 10
Re: West Ham to earn £250 million this season!

It's not a question of can't help himself it's more a question of how much would he need to spend in order to break into the top six ( turn it into a top seven as it were ) in order to compete for a CL place on a regular basis.

In that respect we'd need easily £100M at today's prices and rate of exchange.

Willtell 11:32 Fri Mar 10
Re: West Ham to earn £250 million this season!

I doubt we'll be told the budget Sir Alf but all I'm saying is that it is possible to spend £100+m on players. I think that's what it will probably cost if we want the best.

I think a leopard does not change his spots so I expect DS to look at free transfers and low cost players to be sprinkled into one or two big money signings. He can't help himself.

Sir Alf 10:27 Fri Mar 10
Re: West Ham to earn £250 million this season!

Bottom line to this is how much budget for transfers will be made available and what range of fees are we now looking at?

We tend to shop in the 5 - 10 million aisle and now and then in the 10 - 15 million aisle..

We need 3 quality additions. RB, striker and central midfield alongside Obiang. Paying more will not guarantee success but tends to get you access to be better players. We may also need to pay higher wages to get them to come to a non CL team? We may not need to pay that much but from what I see the better teams add at least one or two in the 30+ million bracket every season?

Will we have 100 million or will Sullivan make claims of that and only really spend 50 max? Will he actually be prepared to overpay on wages to get a top player here? If our scouting is good we may get cheaper but they say now that we are buying proven Premiership quality? That suggests overpaying which is something Sullivan has always said he would not do?

We also need some younger prospects with resale value to help balance the books longer term.

A development strategy too would be good or we will be paying a lot of money out each season without progression over time. The old law of diminishing returns.

We need to get the playing side of the business right now.Get us a team that is at the top end of the league and we might quieten down about the stadium.

This summer we will all be watching and listening closely to Messrs Sullivan, Gold, Brady, Bilic and Henry. Don't sell us short !

Willtell 9:40 Fri Mar 10
Re: West Ham to earn £250 million this season!

The important thing for everyone to remember is that the headline figures are not all they seem. When we buy a player for £25m and put him on a 5 year contract, the cost is spread over that 5 years at £5m a year to be paid by reducing the trading profit.

If the player's contract is renegotiated, the balance is then written down from the trading profit over the length of the new contract. For example, a player is signed for £25m on a 5 year contract and the cost is written out of the trading profit at £5m a year.

After 2 years the player has a balance sheet value of £15m but has done well so gets an increase in wages. The club pay for that by writing down the £15m on the balance sheet over another 5 years at £3m a year instead of £5m a year reducing the deduction from trading profits.

If the player got a £1m a year increase in wages, it is not difficult to see that the trading profit is actually £1m a year better off. It is this kind of equation that keeps accountants in business...

Trevor B 9:17 Fri Mar 10
Re: West Ham to earn £250 million this season!

I could understand if it was amortised value of the player over the length of his contract. Good job I'm not an accountant.

Trevor B 9:16 Fri Mar 10
Re: West Ham to earn £250 million this season!

Ah OK, seems rather weird they would do that though considering that the club would expect to receive payments totally a certain amount over a defined period of time. Accountancy is weird.

Willtell 9:04 Fri Mar 10
Re: West Ham to earn £250 million this season!

I just checked Trevor. New signings are written down over the period of the contract the player signs for. If you have a copy of the accounts it is stated on page 28 in the 2nd from last paragraph.

Willtell 8:52 Fri Mar 10
Re: West Ham to earn £250 million this season!

I don't actually think so Trevor but it's the principle that is important.

Companies can agree different treatments of write downs with their accountants but it has to be within reason that the taxman will agree to.

I think I read that the actual write down period was the length of contract and the period of payments has nothing to do with it. That only affects the cashflow. For example if a company buys a car or desks or computers they usually write down the basic cost irrespective of the way the deal is financed.

If a company leases assets then the cost comes out of the P & L trading figures over the period of the lease I am sure. Leased items are costs and never reach the balance sheet.

Trevor B 8:48 Fri Mar 10
Re: West Ham to earn £250 million this season!

The same with any incoming fees, it's rare these days that a player's transfer fee is paid fully up front, it's usually over several seasons.

Trevor B 8:44 Fri Mar 10
Re: West Ham to earn £250 million this season!

Willtell

The costs of players transfer fees aren't measured over the length of their contract are they? Moreso over the length of the payment schedule agreed with the selling club?

Willtell 8:41 Fri Mar 10
Re: West Ham to earn £250 million this season!

Oooops! "Or the cost would be about £25m in each year..." obviously should have said £20m in each year...

Willtell 8:37 Fri Mar 10
Re: West Ham to earn £250 million this season!

For simplicity about this and transfer budgets let's get a few things straight.
1. Turnover is sales income that should exceed £200m for the first time this year. It does not include property or player sales and the articles arsegrapes refers to are wrong. Sales income is TV revenue, ticket food and clothing sales.
2. Costs are the amounts of expenditure the club makes including wages, office costs etc.
3. Operating profit is the difference between teh costs and the sales. It should reach about £125m with an operating profit of £75m. I'm guessing this as we have no idea how the wage bill has gone.
4. Out of the operating profit come the costs of buying players and other assets depreciated over the expected lifetime of that asset, interest payments on loans and corporation tax.
5, Assets are items the club buys that will be used for more than just one year so the costs are spread over several years.
The UP land is an asset sale. The value of the land is assessed from regular professional valuations and the figures show in the balance sheet in the accounts. This is an extension of the P&L (profit & loss statement of trading) as mentioned in point 3.

Selling UP for £38m was not income of £38m. It had a mortgage of £30m so was only an £8m income. (If you sell your house for £380,000 but have a £300,000 mortgage your income is only £80,000.) This is reflected by an £8m increase in the value of the balance sheet without affecting the trading figures.

The sale of Payet for £25m is treated in a similar way. He cost £11m 18 months before so on a 4 year contract the cost to our operating profit would have been about £3m a year or just over £4m for that 18 month period. So on the balance sheet Payet's value was shown at say £7m. So the balance sheet value was increased by the £18m profit. However, we also bought Fonte and Snodgrass for a similar amount but the entire cost is not allocated to this year and spread over many years.

Clear as mud I expect but put it this way. If our operating profit as at point 3. was to be say £75m and we bought 4 players for £25m each the total cost would be £100m. However, if those players are signed to 5 year contracts the cost would be written down over the 5 years. Or the cost would be about £25m in each of the next 5 years to come off the operating profit figure at point 3.

Now what we don't know is the state of the balance sheet is from previous years of trading activity. One thing is certain that we will have big write downs from previous years. The only sales to add back into the balance sheet is the Tomkins and Payet sales that are worthy of note. So those players and the ground sales only reduce the cost of asset purchases. Their affect is to add funds to the amounts that would otherwise reduce operating profits at point 3.

In short we should expect a lot of purchases and a £100m spend on players this summer is not as outlandish as it may sound. It is probably easily achievable...

I hope that helps and sorry if you cannot follow it but that is basically how accountants earn their money auditing companies. I'm not an accountant btw but was a director for 35 years and learnt the hard way.
Sorry if it is difficult to follow

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