West Ham could now U-turn on £10m off-pitch deal despite what Karren Brady has said
Today at 01:25 PM
Despite what the recent phasing out of concessions tickets and price rises rises might suggest, West Ham have been one of the Premier League’s biggest financial success stories in recent seasons.
Bolstered by success in Europe, the Hammers have have posted total income of £253m and £237m in the last two financial years, a big leap forward on their previous all-time revenue record of £193m.
And unlike most clubs in the Premier League in that time – during which, incidentally, teams were still reeling from the pandemic – West Ham have managed to more or less break even financially.
Commercially, West Ham have also hit new heights.
Income from sponsorship, merchandise sales and events totalled £48m in each of the last two seasons, and that is without the naming rights deal for the London Stadium that Karren Brady has long pursued.
Relative financial stability in the last few years has also made them members of an increasingly exclusive club: those who are not in any danger whatsoever in terms of Profit and Sustainability Rules (PSR).
With football increasingly played out in the courts and balance sheets becoming almost as talked about as team sheets, supporters might have tired of hearing about commercial income.
But the self-funding model pursued by David Sullivan and the rest of the ownership regime means that sponsorship is central to what Julen Lopetegui is allowed to spend in the transfer market.
Events outside of the club’s control meant they have had to recalibrate in terms of one particular commercial deal, but the latest developments suggest a U-turn may be on the cards.
West Ham could renew their biggest commercial deal
Bringing in fractionally more than their £7m-a-year kit deal with Umbro, West Ham’s most lucrative commercial partnership is with front-of-shirt sponsor Betway.
The brand, who lend their name to the pre-season Betway Cup at the London Stadium, have owned West Ham’s front-of-shirt rights since the 2015-16.
The most recent iteration of the deal is worth £10m annually and runs until the end of the current campaign.
Significantly, the Premier League has confirmed that it will introduce a ban on front-of-shirt gambling sponsorship from the 2026-27 season onwards.
It is for that reason that Karren Brady admitted last year that West Ham were actively searching for a new primary sponsor.
As quoted by Hammers News, the West Ham vice-chair wrote the following in an internal letter: "We will be going to market shortly for a new primary sponsor. The window to sell the naming rights will be impacted once we engage a fresh front of shirt brand partner.”
But West Ham source Sean Whetstone has now reported that West Ham are now exploring a one-year extension of the deal, which would take the partnership right up to the introduction of the gambling ban.
That would represent a change of policy from the East London club.
Will West Ham recover from Premier League-wide sponsor ban?
If West Ham do choose to extend their front-of-shirt deal, it could be that they are waiting to take the temperature of the market once the ban has been introduced.
The withdrawal of the gambling sector – who have historically been the big-ticket industry in the sponsorship market – will inevitably have knock-on effects.
With over half of the clubs in the Premier League as it stands set to lose their front-of-shirt sponsors, it will be a be a buyer’s market.
On the flip side, the value of West Ham’s sleeve rights, which they current sell to QuickBooks for £4m per season, will likely increase as gambling companies refocus their efforts.
Sleeve sponsorship by companies such as Betway is not currently set to be banned, nor is perimeter advertising or indeed any other form of marketing.
That has led many charities and non-profits to question the efficacy of the league-wide ban.
