PSR 2025

[Keep dreaming]

Since I knew little of this, I asked AI if West Ham United was closed to facing PSR issues in 2025.

Here is the answer:


Based on recent reports and their published financial results for the 2023/24 season, West Ham United appears to be in a relatively strong position regarding PSR compliance for the current (2024/25) and upcoming (2025/26) financial years.

Here's why:
 * Significant Profit in 2023/24: West Ham posted a record £57 million pre-tax profit for the 2023/24 financial year. This was largely driven by the £105 million sale of Declan Rice to Arsenal, which provided a substantial boost to their financial figures. This profit significantly offsets any prior losses and creates a comfortable buffer.

 * Three-Year Rolling Profit: Reports indicate that West Ham's three-year rolling profit (before allowable deductions) for the period ending May 31, 2024, was £51 million, comfortably below the Premier League's maximum allowable loss of £105 million over a three-year period.

 * Debt Free: The club successfully cleared all outstanding debts, including a £55 million loan, in the 2023/24 season. This indicates a healthy financial footing.

 * Strategic Player Sales: The sale of a high-value academy product like Declan Rice is a prime example of how clubs can generate "pure profit" for PSR purposes, as the player had no amortized cost on the books. This type of sale is crucial for many clubs to stay compliant.
However, there are nuances and future considerations:

 * Reliance on Player Sales: While the Declan Rice sale provided a huge advantage, it's a one-off event of that magnitude. Future PSR compliance will depend on continued strong revenue generation and/or further profitable player sales.

 * "Sell to Buy" Narrative: Despite their healthy PSR position, there has been a recurring narrative (especially from the club's board, according to some sources) that West Ham needs to sell players before they can buy, or that new manager Graham Potter will only have 75% of sales money to reinvest. This might be more related to cash flow management or a conservative transfer strategy rather than immediate PSR pressure.

 * Amortization and Wage Costs: While their overall financial picture is good, West Ham's operating expenses and wage bill have increased. They need to manage these costs effectively to avoid future issues, especially if European qualification is not consistently achieved.

 * Future Sales and Lucas Paqueta: There has been speculation about the potential sale of players like Mohammed Kudus and Lucas Paqueta to generate further transfer funds. Paqueta's ongoing legal situation regarding alleged betting breaches could impact his transfer value or even lead to a ban, which would affect any potential sale and the club's financial plans.
In conclusion, West Ham United is currently in a good position regarding PSR, primarily thanks to the profitable sale of Declan Rice. While they need to continue to manage their finances prudently, they are not immediately "close to facing PSR issues" in 2025 based on their latest published accounts. The discussions around "sell to buy" seem to be more about transfer strategy and cash management for future windows rather than a desperate need to avoid immediate PSR breaches.
 

[John Drake]

Share dilution from new investment at football clubs happens all the time. If each shareholder contributes in line with current shareholding then their percentage holding would remain the same. They would just hold more shares but of a theoretical lower value.

[RBshorty]

Sorry goose. I meant the FA. It won't matter who pumps the money in. It will water down everyone's share's. Making it harder to individually sell their part of the pie. Something nobody except Sullivan would welcome. If it was a good idea. Todd Boehly would have industrialise it over at Chelsea. Instead of going through all the other financial gymnastics he does.

That's why it's BS. Pumped out by someone who thinks they are coming off better form any deal.

[John Drake]

Owners must cover any 3 year PSR losses above £15 million by capital injection.

Share dilution will depend on which shareholders are stumping up the extra dosh

[goose]

does the debt have to be converted into equity?
do the FA have different rules to UEFA?

[RBshorty]

Because any loan to the club from the board. Has to be seen has a share dilution to UEFA. And more importantly anyone interested in buying the club. And that's why it's pure BS. Trotted out by a owner drowning in debt.

[goose]

why is the Gold's share being watered down?

[RBshorty]

Anyone thinks we have an issue now. Just wait until this time next year. (When the Rice money comes off the books.!)

I would imagine the Gold estate are tickled pink with the thought of their 25% (Which they are trying to sell.) Being watered down. After yesterday's announcement.? The line of buyers must be getting as big as the Season ticket waiting list.

[John Drake]

West Ham's financial year closed at the end of May. There is no threat of a PSR breach for the 3 years just ended.

Any comings and goings after May will be reflected in next year's accounts. 

I doubt PSR will be around much longer. The problem will then be compliance with squad cost ratios.

[El Scorchio]

Since I knew little of this, I asked AI if West Ham United was closed to facing PSR issues in 2025.

Here is the answer:


Based on recent reports and their published financial results for the 2023/24 season, West Ham United appears to be in a relatively strong position regarding PSR compliance for the current (2024/25) and upcoming (2025/26) financial years.

Here's why:
 * Significant Profit in 2023/24: West Ham posted a record £57 million pre-tax profit for the 2023/24 financial year. This was largely driven by the £105 million sale of Declan Rice to Arsenal, which provided a substantial boost to their financial figures. This profit significantly offsets any prior losses and creates a comfortable buffer.

 * Three-Year Rolling Profit: Reports indicate that West Ham's three-year rolling profit (before allowable deductions) for the period ending May 31, 2024, was £51 million, comfortably below the Premier League's maximum allowable loss of £105 million over a three-year period.

 * Debt Free: The club successfully cleared all outstanding debts, including a £55 million loan, in the 2023/24 season. This indicates a healthy financial footing.

 * Strategic Player Sales: The sale of a high-value academy product like Declan Rice is a prime example of how clubs can generate "pure profit" for PSR purposes, as the player had no amortized cost on the books. This type of sale is crucial for many clubs to stay compliant.
However, there are nuances and future considerations:

 * Reliance on Player Sales: While the Declan Rice sale provided a huge advantage, it's a one-off event of that magnitude. Future PSR compliance will depend on continued strong revenue generation and/or further profitable player sales.

 * "Sell to Buy" Narrative: Despite their healthy PSR position, there has been a recurring narrative (especially from the club's board, according to some sources) that West Ham needs to sell players before they can buy, or that new manager Graham Potter will only have 75% of sales money to reinvest. This might be more related to cash flow management or a conservative transfer strategy rather than immediate PSR pressure.

 * Amortization and Wage Costs: While their overall financial picture is good, West Ham's operating expenses and wage bill have increased. They need to manage these costs effectively to avoid future issues, especially if European qualification is not consistently achieved.

 * Future Sales and Lucas Paqueta: There has been speculation about the potential sale of players like Mohammed Kudus and Lucas Paqueta to generate further transfer funds. Paqueta's ongoing legal situation regarding alleged betting breaches could impact his transfer value or even lead to a ban, which would affect any potential sale and the club's financial plans.
In conclusion, West Ham United is currently in a good position regarding PSR, primarily thanks to the profitable sale of Declan Rice. While they need to continue to manage their finances prudently, they are not immediately "close to facing PSR issues" in 2025 based on their latest published accounts. The discussions around "sell to buy" seem to be more about transfer strategy and cash management for future windows rather than a desperate need to avoid immediate PSR breaches.


 

My very basic understanding is we're good currently, but fucked once the Rice sale disappears from the 3 year rolling period (next year).

Same, unless we get good money for Kudus and Paqueta. Perhaps that's why the board are shitting themselves and claiming poverty, but then it would have made more sense to get signings in ASAP and before 30th June? I can't claim to be an expert on this but it would seem logical to try and spend against 24/25 rather than 25/26

[El Scorchio]

Reported in the Mirror but based on Transfermkt data ranks West Ham 14th in Premier League squad values. So much spent, so little to show for it

https://www.mirror.co.uk/sport/football ... s-35445965

 

 

Fucking embarrassing. Aside from the promoted teams only Wolves, Everton and Fulham below us who I expect our spend is far greater than. And I bet about a third of our value if not more comes from only 3-4 players.

What good is spunking money if it's on the wrong/shit players? It tells me that Sullivan is a fucking awful judge of talent, seen as he's the one who yay or nays all of them. Man U have to be the only side in the division who have done a worse job than us in the last 5 years in terms of spending on shit players.

[stubbo]

Since I knew little of this, I asked AI if West Ham United was closed to facing PSR issues in 2025.

Here is the answer:


Based on recent reports and their published financial results for the 2023/24 season, West Ham United appears to be in a relatively strong position regarding PSR compliance for the current (2024/25) and upcoming (2025/26) financial years.

Here's why:
 * Significant Profit in 2023/24: West Ham posted a record £57 million pre-tax profit for the 2023/24 financial year. This was largely driven by the £105 million sale of Declan Rice to Arsenal, which provided a substantial boost to their financial figures. This profit significantly offsets any prior losses and creates a comfortable buffer.

 * Three-Year Rolling Profit: Reports indicate that West Ham's three-year rolling profit (before allowable deductions) for the period ending May 31, 2024, was £51 million, comfortably below the Premier League's maximum allowable loss of £105 million over a three-year period.

 * Debt Free: The club successfully cleared all outstanding debts, including a £55 million loan, in the 2023/24 season. This indicates a healthy financial footing.

 * Strategic Player Sales: The sale of a high-value academy product like Declan Rice is a prime example of how clubs can generate "pure profit" for PSR purposes, as the player had no amortized cost on the books. This type of sale is crucial for many clubs to stay compliant.
However, there are nuances and future considerations:

 * Reliance on Player Sales: While the Declan Rice sale provided a huge advantage, it's a one-off event of that magnitude. Future PSR compliance will depend on continued strong revenue generation and/or further profitable player sales.

 * "Sell to Buy" Narrative: Despite their healthy PSR position, there has been a recurring narrative (especially from the club's board, according to some sources) that West Ham needs to sell players before they can buy, or that new manager Graham Potter will only have 75% of sales money to reinvest. This might be more related to cash flow management or a conservative transfer strategy rather than immediate PSR pressure.

 * Amortization and Wage Costs: While their overall financial picture is good, West Ham's operating expenses and wage bill have increased. They need to manage these costs effectively to avoid future issues, especially if European qualification is not consistently achieved.

 * Future Sales and Lucas Paqueta: There has been speculation about the potential sale of players like Mohammed Kudus and Lucas Paqueta to generate further transfer funds. Paqueta's ongoing legal situation regarding alleged betting breaches could impact his transfer value or even lead to a ban, which would affect any potential sale and the club's financial plans.
In conclusion, West Ham United is currently in a good position regarding PSR, primarily thanks to the profitable sale of Declan Rice. While they need to continue to manage their finances prudently, they are not immediately "close to facing PSR issues" in 2025 based on their latest published accounts. The discussions around "sell to buy" seem to be more about transfer strategy and cash management for future windows rather than a desperate need to avoid immediate PSR breaches.

 

My very basic understanding is we're good currently, but fucked once the Rice sale disappears from the 3 year rolling period (next year).

[John Drake]

Reported in the Mirror but based on Transfermkt data ranks West Ham 14th in Premier League squad values. So much spent, so little to show for it

https://www.mirror.co.uk/sport/football ... s-35445965

[Lee Trundle]

Is it better than FIFA 25 or EA Sports FC 2025 whatever it's called nowadays?

[El Scorchio]

This model and how it works just really exposes how dumb and short termist Sullivan's 'strategy' for squad building is. All those players gone so far and not a pound raised from the sales.

Buy at the peak of their value just at the point they start the downsides of their career, then spunk a load of wages on them while they contribute relatively little, tying up loads of our money on unsellable assets, then let them walk at the end of their contract, unless you offer a one year rolling extension due to dire need. Genius.

Once Rice is off the books, unless we get some good money for Kudus, Paqueta and the likes of Alvarez or Soucek, we'll be struggling mightily.