2019/20 financial results announced
West Ham United Football Club announced today (Tuesday March 9) their financial results for the year ended May 31, 2020.
As has been the case with all football clubs, the Club’s financial performance has been strongly impacted by the global COVID-19 pandemic, which has caused the postponement of the last nine matches of the 2019/20 Premier League season.
This resulted in an overall drop in broadcast revenue of £ 44.9million, mainly related to the nine postponed games carried over to fiscal year 2020/21. All income from the five home games initially deferred, then played without supporters present when the project restarted in July and August 2020, has also been lost. This strongly impacted our ticketing, commercial and retail revenues.
Turnover of £ 139.5million was down £ 51.2million from the previous year, mainly due to lower broadcast revenue which together with the loss of regular revenue from matches, is the main reason for the increase in net loss for the year from £ 38.1million to £ 65.3million.
Following the initial impact of the COVID-19 pandemic, the Club took steps to ensure it could avoid any layoffs and that all staff continued to be paid 100% of their salaries. In order to support the Club and help its long-term stability, the Co-Chairs have deferred interest payments and injected additional funding of £ 30million through a capital increase on July 1, 2020.
Additionally, club vice-president Karren Brady, manager David Moyes and CFO Andy Mollett were given a 30% salary deferral to help the club during this time. This, together with the fact that the club are one of the few Premier League clubs whose players have shown their support by also agreeing to benefit from salary deferrals, was a further demonstration of solidarity and spirit within the soccer club.
In line with the goal of ensuring long-term stability on and off the pitch, by the end of February 2021, the Club has entered into a new five-year loan facility with MSD which offers the possibility of accessing up to to £ 120.0 million if necessary. , part of which will be used to liquidate short-term loans contracted as a result of the pandemic.
We have also seen the West Ham United family come together to support those in our community who need it most during the COVID-19 pandemic. Hammers fans everywhere have shown what makes them special during a difficult year for everyone from those who gave their all for others in their communities to key workers, caregivers and volunteers.
Our top priority has always been the well-being of all members of the West Ham United family and those who need it most in our local community.
Co-chair David Sullivan
The loyalty displayed by Club fans was also manifested by the magnificent level of renewal of Subscriptions for the 2020/21 season. The safe return of our supporters to matches is something that cannot happen soon enough. The club continue to put in place rigorous plans and processes – in strict compliance with government guidelines – to make the London stadium as safe as possible for all, and we look forward to the day when our supporters return to their homes. place to applaud. the team on.
In the field, great progress has been made since the appointment of David Moyes as manager in December 2019. In addition to significant investments in the summer of 2019, substantial funds have also been made available in the January transfer window. 2020 to bolster the first-team squad, with an investment of £ 107.8million over the season, helping to end the 2019/20 campaign on a strong footing.
An even more impressive string of results and performances in the first half of the 2020/21 season followed which, coupled with a strong recruitment of players in the summer of 2020, aligned with a clear strategy and vision. to build a young, dynamic and talented team capable of producing long-term success for the Club.
Co-Chairman and majority shareholder David Sullivan said: “The 2019/20 season has been a unique and unprecedented campaign in the professional game, but I am extremely proud and grateful for how everyone at West Ham United s ‘has come together to help the Club and our community through such a difficult time.
“I also want to thank our loyal and dedicated supporters, many of whom have renewed their subscriptions for the 2020/21 season, and we hope to see them back at London Stadium as soon as possible to give their fantastic support to the team at such a time. exciting and promising period for the Club.
“There is no denying the financial challenges everyone in the game faced as a result of the pandemic. However, our top priority has always been the welfare of all members of the West Ham United family and those who need it most in our local community, and we can all be very proud of how the Club has performed. headed its way over the past 12 months.