The results have just been published for the year ending 31st May 2018.
Turnover was down for the year at £175m, a reduction of £8m. The majority of this was from broadcasting rights at £118m (slightly less than the previous year as our position dropped to 13th from 11th) and match receipts were £24m. The operational profit has dropped to £35m from £56m
Average league attendances (or let’s say tickets bought) were 57,000, as opposed to 35,000 at the Boleyn.
The accounts are littered with references that the figures are based on the company as a going concern (which is a negative in accounting terms), due to uncertainties about income, the principal risk being that of being relegated. At one point it is stated, ‘The retention of our standing in 2018/9 is an absolute necessity.’
Employment costs rose to £106m from £95m. Karren Brady received £898,000 and a further £438,00 as a consultancy fee for negotiating the 10% sale of shares to Albert ‘Tripp’ Smith, who also provided a £10m interest-free loan.
The shareholders did not receive a dividend, but did receive interest payments amounting to £4.5m on their £45m loan, although it would appear that included unpaid interest from previous years, as the loan rate is 4-4.5%.
There is still an ongoing investigation by HMRC regarding payments made to agents.
The club took further short-term loans of £23m from Rights and Media Ltd to finance the cost of new players. Rights and Media Ltd have made loans over the years to West Ham and other clubs such as Everton, Southampton, Fulham and Reading. Their director used to be an Irish jig dancer, but the loans actually come from a company called Vibrac Corporation, based in the British Virgin Islands. Nobody knows who finances that company.
So, I think we can say that the owners take a considerable risk, as everything can start falling apart if the club is relegated. So, when we lost our first four games, they must have been extremely worried.
Also, they have not tried to stiff the fans and the income from the 57,000 is relatively the same as it was at The Boleyn. We know there are many concessions.
Bearing in mind the risks involved and the fact that after the summer of 2021, a sale would not trigger an additional payment to the owners of the stadium, this may be a target date for a sale.