A jaw-dropping revelation from football finance expert Kieran Maguire has raised serious questions over the West Ham transfer budget.
Fans had been eagerly awaiting news of the club’s summer transfer budget ahead of a major rebuild.
It has been abundantly clear for some time that West Ham need to spend big and well this summer.
Technical director Tim Steidten now has full control of recruitment with Julen Lopetegui named head coach rather than manager.
The Spaniard will have an input and has already reportedly told Steidten and David Sullivan the positions he wants to see strengthened.
After retaining Aaron Cresswell, West Ham have a squad of 17 players.
The Hammers have also confirmed they are in talks to sign Ben Johnson and Divin Mubama up to extensions. Though the latter would surely be sent out on a much-needed loan.
Further departures are expected to raise funds so West Ham will need to make at least six to eight new signings.
Last week it was revealed by an insider close to the West Ham board that the club’s summer budget was £100m.
That amount raised eyebrows among fans who feel it is simply nowhere near enough.
Certainly not to sign quality players in quantity which is what West Ham sorely need.
By crude calculation that means the Hammers would only be able to spend – on average – £12.5m per signing, based on eight new arrivals.
The board have come under fire from some fans since who have been pointing to the fact West Ham are about to announce record turnover exceeding £365m in their next accounts.
So supporters will be very interested in what a top football finance expert has had to say.
Because a jaw-dropping Kieran Maguire claim raises questions over the West Ham budget.
Maguire, a friend of Hammers News, told his Price of Football podcast that West Ham are ranked third in the Premier League in terms of the best EBITDA.
EBITDA stands for earnings before interest, taxes, depreciation and amortisation and is a standard of financial measurement to judge a business’ performance.
Only Arsenal and Brentford – widely regarded as two of the best run clubs in Europe top leagues – have a better EBITDA score than West Ham according to Maguire.
“To my complete surprise when I did this (EBITDA calculation), the four clubs with the highest return on EBITDA, first of all Arsenal, second Brentford, third West Ham and fourth Spurs,” Maguire said.
“And I thought Jesus Christ it is true, so London does have a premium. Why? Because you can charge more money for tickets, yes you’re having to pay some more money on wages, so that really took me back.”
The bottom three clubs will be of no surprise to anyone with Forest, Everton and Leicester the worst for EBITDA.
The revelation comes after the top source inside West Ham spoke exclusively to Hammers News about the summer budget and PSR rules back in March.
“We will have a bit of money,” the key figure exclusively told Hammers News.
“And if we sell players that will add to the kitty for transfers.
“The huge problem is wages.
“They must not exceed a certain percentage of turnover and that includes players, managers and amortisation over the contract of players bought.”