West Ham United’s relegation could cost taxpayers dearly
British taxpayers face an even greater financial burden should West Ham United drop into the Championship, reports BritPanorama.
The club’s rent at the London Stadium would be halved from approximately £4.4 million annually. The former Olympic venue has been losing money since the 2012 Games, with operator E20 Stadium LLP recently revealing losses of £51.3 million for the year ending March 2024, equivalent to nearly £1 million every week.
Projected future losses stand at £206.7 million, a figure that could increase if the Hammers are relegated. Every home fixture at the stadium costs taxpayers over £100,000, and playing in the Championship would mean four additional home league matches compared to a Premier League season.
WH Holding Limited, the parent company of West Ham United Football Club Limited, had not submitted its annual report and financial statements for the year ending May 2025 as of Friday morning. Traditionally, these accounts have been lodged with Companies House by mid-January each year without fail. According to The Telegraph, neither submission is expected until at least next month, with the legal deadline falling at the end of February.
Football clubs have previously delayed filing when their figures paint an unflattering picture, and speculation suggests that the east London outfit may have recorded losses of around £100 million during the previous campaign. West Ham declined to comment on these reports. The club’s confirmation statement, due on January 12, was submitted eight days overdue.
If the club fails to avoid relegation, they would become the first team valued above £740 million to fall into English football’s second tier, triggering the largest overnight valuation collapse in the sport’s history. By May last year, West Ham’s worth had reached £840 million, with only the Premier League’s traditional “big six” commanding higher figures.
Relegation would strip the club of guaranteed prize money exceeding £100 million. For instance, Southampton received £109.2 million last season despite finishing at the bottom with only 12 points. Leeds United’s experience following their 2023 relegation serves as a stark warning: central distributions nearly halved from £94.1 million to £51 million, while broadcasting income plummeted from £17.4 million to £2.6 million.
The proceeds from Declan Rice’s club-record £105 million transfer to Arsenal have been quickly spent, with the Hammers investing £125 million and £170 million across the past two transfer windows. Big-money acquisitions, including Niclas Füllkrug and Maximilian Kilman, have failed to deliver, and the club’s accounts reveal outstanding transfer debts exceeding £190 million, with £100 million due by June last year.
Retaining key players, such as captain Jarrod Bowen, would prove extremely difficult following relegation. Any player attracting top-flight interest is likely to depart, and the club is already seeking to extract maximum value from Lucas Paquetá, pursuing a sale to Flamengo on the condition that he returns on loan for the remainder of the campaign.
The stakes are exceedingly high for West Ham: a slip into the Championship not only jeopardizes the club’s financial future but reinforces how closely intertwined football’s fortunes are with financial realities, echoing the age-old adage that what goes up must come down.
