A football finance expert has shared the exciting truth behind a £2.65bn West Ham claim which has caused a stir around the club.
Speculation has swirled for years around West Ham and a potential takeover.
Especially since Czech billionaire Daniel Kretinsky become West Ham’s second biggest stakeholder by purchasing 27 per cent of the club for around £150m.
That was two-and-a-half years ago and essentially valued the Hammers at around £600m.
West Ham have made no secret of the fact they are looking for further investment since Vansessa Gold announced the decision to put part – and potentially all – her family’s stake up for sale in October last year.
Over the weekend Kretinsky signalled his desire to increase his West Ham share in an ultra rare TV interview.
US investor dropped mega money Hammers claim
That came after Greg Bettinelli – a partner of the LA-based private equity firm The Chernin Group – claimed West Ham are now worth between £795m and £2.65bn.
The American investor was talking to friend of Hammers News, Kieran Maguire, on his Price of Football podcast.
Bettinelli said that West Ham belongs to an elite group of nine Premier League clubs that can command a valuation of between three to 10 times their turnover.
The nine clubs include Manchester City, Manchester United, Chelsea, Spurs, Liverpool, Arsenal, Newcastle, Aston Villa and the Hammers.
He also claimed that West Ham and the two other clubs outside the traditional “top six” are attractive investments to the US market as they are more likely to qualify for Europe than get relegated each season.
The claims have driven plenty of debate and excitement in West Ham circles. Particularly with the Hammers actively seeking fresh investment.
Now a football finance expert has responded with the truth behind that £2.65bn West Ham claim.
Expert shares exciting truth behind £2.65bn claim
Adam Williams heads up GRV Media’s football finance and governance content.
And he says that while there is a big margin between £795m and £2.65bn, there are a host of factors which make West Ham an extremely valuable and attractive proposition.
“With geography playing an increasingly significant role in football club valuations, the London factor is one of West Ham’s major selling points,” Williams exclusively told Hammers News in response to Bettinelli’s claim.
“Being in the capital gives the club access to a large and wealthy market, abundant blue-chip commercial opportunities and the best infrastructure.
“The cultural and historical significance of the club can’t be understated either. While this comes under the ‘intangible’ category, it has a real and sizable impact on brand value nonetheless.
“West Ham also have the highest matchday revenue outside the so-called ‘Big Six’. Although the deal with the London Stadium landlords limits non-matchday income potential from the venue, the club benefits from paying what is essentially a token fee for a facility that continues to incur losses. And those are costs that West Ham do not bear.
“Annual revenue has averaged approximately £245m over the last two seasons, and even in seasons without European football, the club can generate £200m.
“They also enjoy one of the most favourable positions in the Premier League with regards to financial fair play.
‘Attractive to investors’
“That means would-be investors wouldn’t be confronted with issues around manoeuvrability in the transfer market, allowing for improvement on the pitch and financial growth off it.
“West Ham’s debt meanwhile is around £56m, but almost all of that is through a secured debt facility with MSD Holdings, which essentially functions as an arranged overdraft.
“Zooming out, domestic broadcast revenue across the Premier League is plateauing but the overseas pot continues to grow.
“The certainty of that revenue and the absolute supremacy of the Premier League compared to its peers worldwide will again be attractive to investors.”
West Ham vice-chair Karren Brady listed the club’s valuation at over £800m on her personal website back in 2020.
Now, four years on, it seems there’s every chance that figure could be even higher.