“Interesting increase” | West Ham operating costs jump | OneFootball

West Ham have seen the operating costs at the club increase sharply, which could have an impact on PSR.

The club published their latest figures last week to show a record revenue figure for the club, however the jump in costs to run the club have risen, with finance expert Stefan Borson discussing on Football Insider.

“There are no real surprises in West Ham’s numbers because it’s a relatively simple situation to model.

“There are no major unusual transactions in there. There has been an interesting increase in their costs. They have been historically really good at keeping their operating costs down.

“The sort of costs we are talking about are the running costs of the club, excluding the wages, so the costs of running the business, the tour to Australia and those sorts of costs.

“They were up by about 25 per cent. Obviously, we have had quite a lot of inflation over the last couple of years, just in the running costs of utility bills and things like this. But a 25 per cent increase is quite a lot.

“What’s interesting about that is what that might mean for some of the other clubs around, and whether that signifies that a lot of football running costs in the next set of accounts that we see are going to be similarly increasing at these 20 per cent rates.

“It is going to make an impact in terms of looking at some of the modelling on some of the clubs as to whether they are going to pass PSR.

“If they have actually had a 20 per cent increase in other operating costs, that’s going to be another hit to their profit and loss.

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