At the end of this season, new PSR, or “profit and sustainability rules,” will take effect, and West Ham might need to cut back on expenditure.
Proposed new regulations would permit clubs to allocate up to 85 percent of their revenue towards transfers, wages, and agent fees.
In recent years, Hammers manager David Moyes has been known for his substantial spending. However, the club did receive a significant sum of £105 million from Arsenal for Declan Rice nine months ago, with the fee structured to be paid in three instalments.
Given the repercussions that have already been imposed on Premier League clubs for breaching existing regulations, such as Everton and Nottingham Forest receiving point deductions, West Ham may be feeling apprehensive about their own position.
With Manchester City and Chelsea currently under investigation, facing the possibility of substantial fines and further penalties, it’s natural for West Ham to wonder about their own compliance with the regulations.
PSR transfer budget claim could be a big problem for West Ham
Premier League clubs have already shown symptoms of being more frugal with their spending, as evidenced by the complete implementation of PSR crackdowns.
Unless we sell certain players, the Hammers may need to limit our recruitment restrictions this summer.
This is due to an assertion made on West Ham’s potential effects from the new PSR standards.
According to Claret and Hugh, the Hammers had £237 million in revenue last season, which means we would have £201 million to spend on agent fees, wages, and transfers.
With West Ham’s reported wage bill standing at approximately £137 million and an additional £13 million allocated for agent fees, it appears they would have around £51 million available for investment in new players.
Should the new PSR guidelines come into effect, West Ham might find themselves in a position where they need to offload some players to bolster their summer budget. Speculation regarding potential big sales, such as Lucas Paqueta to Manchester City, may arise as the club seeks to navigate these financial constraints.