So, how much can West Ham United actually spend on new signings in the summer transfer window?
The upcoming summer transfer window will be a vitally important one for new West Ham manager Julen Lopetegui.
The Hammers boss is apparently eyeing up a big summer window, with at least six new signings being lined up.
Meanwhile, the news that Lucas Paqueta has been officially charged by the FA for potential betting breaches rocked Lopetegui’s summer spending plans.
Many expected the Brazilian to join Manchester City this summer in an £85 million deal (Goal), but that now looks unlikely with the charges that he faces.
10 months ago, it emerged that the 26-year-old was being investigated by the FA for potential betting breaches.
However, it was only last week when he was actually charged, and the Hammers hierarchy apparently fear that the Brazilian’s career could be over if he’s found guilty of deliberately getting booked on four occasions.
Paqueta’s current situation has thrown everything up in the air when it comes to West Ham’s summer budget.
It has been claimed that Lopetegui has a budget of around £85-100 million this summer, so any player sales will obviously boost that kitty.
The main problem that Lopetegui faces is the fact that David Moyes has left such an unbalanced and ageing squad behind.
The Spaniard needs to completely overhaul the Hammers squad, and that obviously won’t be achievable in just one summer transfer window.
However, making a big dent in the task ahead will be crucial for Lopetegui over the next few months.
And now we have exclusively been told the ins and outs of our finances by an expert in that particular field…
Exactly how much West Ham can spend in the summer
The football finance field is an incredibly complicated maze of conflicting information.
So with that in mind, it was great to hear from someone who really knows his stuff when it comes to football fiscal matters.
TBR Football Finance Expert Adam Williams spoke to Hammers News and offered a detailed explanation on West Ham’s summer spending power, “West Ham were placed on UEFA’s FFP watchlist in 2022, but their situation has improved markedly since then.”
“They were one of only a handful of Premier League clubs to post a profit in 2021-22 and, after they suffered only a small loss of £12m last season, their profit-loss balance over the last three campaigns is likely to be in green ink rather than red.
“That is thanks largely to another lucrative season in Europe and a positive net transfer spend this season.
“Ordinarily, this would give them a maximum margin of £105m to spend on recruitment in the summer under Profit and Sustainability Rules.
“But the imminent introduction of a 70-85 per cent squad cost control ratio and financial anchoring system in the Premier League complicates matters. Under the proposed model, the Hammers’ budget would be tighter.
“However, while the new system will be introduced this summer, I forecast that it will be phased in, just as UEFA have slowly introduced their own new FFP model.
Williams then went on to explain how we could be affected by the outcome of the Lucas Paqueta betting investigation…
“As for the Paqueta misconduct charges, we can’t speculate as to what the outcome of the case will be, but these matters aren’t typically resolved quickly. The Ivan Toney case took months.”
“Either way, West Ham won’t be able to boost their wiggle room in terms of PSR by green-lighting his long-mooted move to Man City. Innocent or guilty, it is overwhelmingly unlike that a buying club will spend circa £80m on a player who could – theoretically – be facing a lengthy ban from football.”
“While this won’t directly impact West Ham’s FFP margin, it does represent an implicit cost for finding a replacement, and they will still be paying the Brazilian’s £8 million salary.”
So without any players sales, Lopetegui should have £89.25 million to spend this summer (85% of £105 million).
If the Spaniard moves on the likes of Nayef Aguerd, Danny Ings and Michail Antonio, his war-chest will be substantially bolstered.
Now we know exactly how much West Ham can spend in the summer transfer window, we should be in for a really exciting few months ahead.
The big unknown right now is whether Lucas Paqueta will be found guilty or innocent of the charges levelled against him.
If it is the latter, Lopetegui will have an extra £70-85 million to spend on new signings. Either way though, expect plenty of incomings at the London Stadium this summer.
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