West Ham's financial woes were laid bare on Monday night when the club published their latest accounts.
The club's decision to award injury-plagued striker Dean Ashton a new contract in December 2008 backfired, leaving them liable for a £5.81million payment when he was forced to retire in December. Freddie Ljungberg and Kieron Dyer will have cost the club £34million over the terms of their contracts, having only started a combined total of 32 matches for West Ham since the summer of 2007.
For two years under the ill-fated Icelandic regime, West Ham's wages totalled around 80% of their annual turnover, nearly 20% higher than the Barclays Premier League average.
The club's finance director, Nick Igoe, wrote in the accounts that the club's subsequent on-field performances were unsatisfactory following such major investment.
"It is a truism to observe that a club's playing success (and almost certainly long-term financial success) is largely dependent on how wisely it invests its available resources," Igoe wrote.
"It has to be concluded that many of the group's investment decisions in the last two to three seasons have been ill-judged.
"Two players who signed in the summer 2007 transfer window, one of whom has since left the club, have started a combined total of 32 games and will have cost the group £34million over the term of their contracts. No football club can sustain this level of expenditure on underperforming members of its squad.
"It must be concluded that the investment in the playing squad has not generated an appropriate return, either financially or in terms of performance. It follows that an eighth and 10th-place league finish, one Carling Cup last eight and one FA Cup last 16 represent an unsatisfactory return on this expenditure.
"Clubs with fewer resources and lower levels of expenditure on their squad have achieved a greater level of league and cup success."
The figures also reveal the major belt-tightening programme West Ham undertook last season in the hope of staving off financial meltdown. The wage bill was reduced and West Ham made £10.8million from player sales - but that accounted for less than a quarter of the transfer expenditure from the previous two seasons.
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Important thing is that 2 Davids wont sell important players like Behrami, Cole, Green, Parker etc.
Firstly im glad its not being covered up..... and yes i do think its due to over paying has been player's who think they can slow walk the rest of there days draggin our club down with there lack luster sick note attitudes... i feel much happy'r knowing the two Davids are at the helm (backed up by kazzer!)... but it does worry me when i hear talk about intrest in players like dutch van nistel donkey, and the such .... have we learned? ... have we?
A Club run by IDIOTS!!! No other explanation needed...What a load of NUMPTY's
The Club has 95 Million Pounds in current liabilities - which means they are payable within one year. And they have 2.9 Million Pounds in cash and bank balances. The wage bill is 60 Million Pounds a year - 5 Million Pounds a month. Another club heading for Administration or liquidation. The new owners are trying to raise a significant amount of money to solve everything - no one would invest in a company in such a perilous financial mess. Mr Gold and his mate have bitten off more they can chew. The bubble is about to be popped.
A football club is best run by people who understand business management first and love football second. At last we have the right people in the driving seat. The next thing to do is get a mentor to help develop Zola because he needs to add toughness to his passion. Then we will be riding high.
I am sadened that my beloved club has been so badly run
Over the top salaries with below par performances, in addition
LJUNGBURG,DYER,ASHTON,BOA MORTE,CURBISHLEY,NEIL,SHEFFILD UNITED,LOST OF SPONSER !!
Who was that player from Germany, we paid 8 mill for! then dissapeared on a free!!!!!!
Thank God for the 2 davids and Karen
With those 3 on the scene we have hope in staying up
Next season back to basics and get rid of the dead wood
Bring on performance relating pay,maybe we might get past the first round of cups
We have average players on good money,the league position do not lie
If we offered decent contracts to our up and coming youngsters then we wouldnt have to let them go instead of these over the hill has beens and in some cases never were (Lucas Neill for one) and maybe just maybe we could have a half decent team
Good job we have the 2 Davids there now otherwise we would have been history. Good LUCK to them to make us good again as the HAMMERS fans deserve better than this.
We all know that the Icelantic's were up to no good.
Its a pity that they can not be made to refund the finances they have cost the club out of their own pockets.
They had enough out of the club.
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