Hammers reveal increased debt
Published 27/01/2014 | 13:07
West Ham's net debt has increased to £77million and owners David Sullivan and David Gold have loaned the club another £10.5million to try to secure their Premier League status, the club's annual accounts have revealed.
For the year ending May 31 2013, when they finished 10th in the Premier League, West Ham enjoyed record revenue of £89.8million and had more commercial income than ever before but the club still made a loss of £3.5million.
That, however, was a significant improvement on the £24million loss of the season before, when they were in the Championship, and club bosses believe the move to the Olympic Stadium in 2016 will herald a new era of financial success.
The co-owners have now loaned the Hammers a total of £45.7million and in the summer refinanced the club's bank loans - these now total £26.7million, payable in January 2016, plus a further £15million the club took out on a short-term basis secured on broadcast income.
The riches from the new Premier League TV deal, which became available last summer, are worth an extra £20million a year, say the club.
West Ham's vice-chairman Karren Brady said in the annual report: "The board is determined to maximise the prospects of retaining Premier League status by making a significant investment in the playing squad.
"The group benefited from excellent support from the major shareholders David Sullivan and David Gold who invested loans totalling £10.5million during the year.
"The three-year TV contract from the summer of 2013 is likely to be worth at least an estimated £20million annually."
Brady added that new Premier League spending controls would "limit the ability of clubs to over-extend themselves on player costs" and will help West Ham "increase profitability".
The accounts show West Ham's wage bill increased to £56.2million from £41.6million.
The highest-paid director, believed to be Brady, received £1.6million up from £427,000 no doubt in recognition of record figures of turnover, attendance, commercial income and the securing of the Olympic Stadium from the start of the 2016-17 season.
Meanwhile, West Ham manager Sam Allardyce said the loan signings of Italian pair Antonio Nocerino, a midfielder from AC Milan, and striker Marco Borriello, from Roma, should breathe new confidence into the club, which has been in or close to the relegation zone all season.
He does not, however, expect to bring in any more new players this transfer window.
Allardyce said: "At long last, after a gruelling eight weeks or so, we've finally managed to secure two new faces.
"Milan have taken Michael Essien from Chelsea, which left the door open for Antonio to come and try and play in the Premier League, which he's very excited about.
"He wants to play and wants to achieve as much as he did in Italy, as well as wanting to get in the Italian squad for the World Cup.
"Marco wants to come and chance his arm, like most players will, in the most exciting league in the world.
"He has got a good track record for being a lively frontman scoring a few goals, even though recently that's not been the case due to a few niggly injuries.
"With the reintroduction of Andy (Carroll) now as well as Marco, it should bring a bit more optimism to everyone at West Ham at the moment, with the fact that these players are coming back, new players have signed and obviously some big games coming up for us."
Nocerino should be available for face Chelsea on Wednesday and Allardyce insists though it will be tough at Stamford Bridge the Hammers can cause an upset.
He added: "Jose seems to have made Chelsea very difficult to break down again and that frees up their quality players to make an impact.
"West Brom should have beaten Chelsea earlier in the season. So if we play to our best we can get a good result."