Hammers profit from Premiership return
West Ham have announced pre-tax profits for the year finishing May 31 of £6m (€8.9m), an £11m (€16.3m) turnaround.
The figures were driven by a successful return to the Barclays Premiership, helped by the increased television revenues that brings, plus a run to the FA Cup final.
In 2004/2005, the season West Ham won promotion back to the top-flight via the play-offs, they recorded a pre-tax loss of £5.1m (€7.5m).
But West Ham’s turnover doubled from £31.8m (€47.1m) to £60.1m (€88.9m) and that helped their operating profit, before player trading, rocket from a £1.9m (€2.8m) loss to a £13.4m (€19.8m) profit.
The club’s debts have shrunk by over £7m (€10.4m) to £22.5m (€33.3m) and the net assets are now worth £39.8m (€58.9m).
West Ham are the subject of a potential takeover bid from a consortium led by Iranian-born businessman Kia Joorabchian.
Club chairman Terence Brown described West Ham as being in a strong financial position.
“The financial prudence shown by the club during those two seasons in the Championship enabled us to make a major investment in the playing squad during the summer and again in the January transfer window,” Brown wrote in the chairman’s statement.
“Most importantly the manager has invested our funds shrewdly, strengthening the squad in key positions and moulding a young and exciting team which has signalled West Ham United’s return to the Premiership with a bold and exuberant brand of football, faithful to the club’s great traditions.
“I commented in last year’s chairman’s statement that we returned to the Premier League in far better financial shape than when we left and with greatly reduced debts.
“I also commented on the good financial shape in which we found ourselves and, as is clearly apparent from our year end accounts, we have been able to build on the financial strength which resulted from our promotion back into the Premier League.”
There was no mention in the chairman’s statement of the potential takeover bid, nor any reference to the mystery surrounding the summer signings of Argentina internationals Carlos Tevez and Javier Mascherano.
But in his message to fans and shareholders, Brown concluded by saying: “I know we sometimes test your patience and I apologise for that but collectively we do have a great institution of which we can be justifiably proud.”
