WH Holding Ltd has today announced its financial results for the year ending 31 May 2019.
The Club made a pre-tax loss of £28.2m, driven predominantly by investment in the squad and subsequent rise in wage costs. While turnover was up by £15m to £190.7m, driven by an increase in match receipts, broadcast revenue and stronger performances in retail and commercial.
In the last four years the club has spent £214.4m net on new players and has invested £22m on infrastructure, including complete refurbishment of facilities at Rush Green, including a new gym and new training pitches; the Academy at Chadwell Heath was totally rebuilt; and almost £2m has been invested in the Women’s team.
The Board is committed to ensuring that this great Club has a strong and stable foundation to build upon. As custodians of West Ham United, the Board will continue to manage the Club in a responsible and sustainable manner and will continue to work hard for supporters.
FAQs
Why does the statement from the Chairman talk about Manuel Pellegrini and the team’s “good form” – this is very out of date?
The report was based on the year ending 31 May 2019 and was written in early October when the team was on a good run of form and sat eighth in the Premier League table.
Once audited, they cannot be changed.
Why don’t these accounts make reference to how much Pellegrini and his team were paid off after departing the Club?
The report is based on the year ending 31 May 2019 and signed in October 2019. Any events subsequent to that date will be included in the accounts to 31 May 2020.
What’s driven the loss if turnover is up?
The pre-tax loss of £28.2m is driven predominantly by investment in the squad and subsequent rise in wage costs and amortization.
While turnover was up by £15m to £190.7m, driven by an increase in match receipts, broadcast revenue and stronger performances in retail and commercial.
What payments have David Sullivan and David Gold taken from the Club?
The major shareholders have not and have never taken a dividend from the Club.
They do not take a salary or expenses from the Club.
The payments referred to in the Accounts are related to accrued interest on shareholder loans made to the Club to reduce third party debt and its cost to the Club. The loans aided the Clubs long term stability. There was also a shareholder loan partial repayment to one of David Gold’s commercial interests.
The Shareholder loans were previously all technically repayable on 1 January 2020, this repayment date has been deferred to 1 January 2024.
In the past the Club has made a point of saying that debt is falling. Why increase it now?
The increase is due to the sizeable investment in the playing squad and first team management.