West Ham’s shareholder conundrum as global exposure rockets

West Ham, currently 16th in the Premier League urgently need to improve their position in the table as each place is reportedly worth approximately three million pounds.  In 2023-24 it was £2.8m. Without European football, income is vital given the severity of PSR Rules.

According to football365, if the Hammers finish 16th the club, based on this prize money alone, would earn £14m with an additional £15.2m from television revenue.

Finishing in 9th place for 2023/24, the Hammers made £147.4m. Which accounted for equal share, domestic and international, broadcast deals, and central commercial revenue.

Based on projections, and a finish of 16th – West Ham would pull in £124.2m, this could rise quite significantly if they move up the table.

The club have pulled of a masterstroke by being included in the upcoming USA based Premier League summer series mini tournament alongside Manchester United, Everton and Bournemouth. Prize Money is yet to be released, but there are suggestions that West Ham could earn around £4m after costs from the exhibition series held in the US.

This event also helps enhance West Ham’s global presence, following their prominent feature  in the Ted Lasso series on Apple TV. The club also received income from Apple for the use of their intellectual property, according to Mike Keegan at the Daily Mail.

West Ham shirts are now available in Pele soccer stores in New York. Along with Everton, they are the only clubs outside of the traditional “top six” that are for sale in these stores.

While the move to the London stadium received criticism, financially it’s proved advantageous for West Ham. The club has consistently had the second highest attendances in the Premier League for some time.

The stadium rent is circa £4m annually with operational costs reported at £16m by London Stadium 185.

Football finance expert, Kieran MacGuire remarked two years ago,  “It’s the big six and then West Ham” when discussing profitability in the Premier League.

It is therefore no surprise that Daniel Kretinsky bought a 27% stake in 2021, with some reports suggesting this is now worth two to three times what he originally paid. After spending nearly £3.6bn acquiring Royal Mail, all eyes are on the Czech Billionaire to see whether he will sell his shares or over the long term increase his holding in West Ham, especially as Vanessa Gold is reportedly open to selling 12.5% of her 25% shareholding.

C&H were informed by a third source that Kretinsky was more likely to buy the club outright than leave – contrary to some rumours circulating on social media: Yet according to a senior source earlier today, he won’t be acquiring Vanessa Gold’s family shares.

Ranked as the 313th richest person in the world by the  Bloomberg Billionaires Index, Kretinsky’s involvement is however seen as a promising sign for West Ham’s future success. With a complicated ownership structure, minority shareholding can be either a ‘vanity investment’ or in Kretinsky’s case add public credibility to a shareholder’s profile before embarking on other business acquisitions less in the public eye.

At the same time, having the Czech billionaire as a large shareholder in the club should make West Ham United a much more credible destination for other investors – although the conundrum is that despite a growing global brand, sound financial footing and the 313th richest man on the planet a 27% shareholder, none appear to be knocking at the gate just now.