West Ham solving £48m off-pitch problem as new footage emerges

West Ham are taking steps to address an obstacle behind the scenes that is hindering their financial progress.

The Hammers are one of the most valuable clubs in the Premier League outside the so-called ‘Big Six’.

In fact, one US private equity investor recently claimed that their enterprise value is at least £795m – and potentially far greater.

Part of their appeal is their commercial allure, with their London location and rich history creating an attractive prospect for brands to associate themselves with.

However, there is an argument to suggest that the club is not fulfilling their potential in terms of sponsorship and merchandise.

Their commercial income of £48m is lower than the likes of Everton and Leeds United at the last count, while Aston Villa and Newcastle United are on track to surpass them next season.

West Ham therefore need to attract more blue-chip sponsors or risk falling behind their peer group.

And their latest commercial venture is one step towards that aim.

West Ham strike new sleeve deal

Images were leaked earlier this year of West Ham’s alleged new away shirt with a brand new sleeve sponsor, QuickBooks.

Now, in a video advertisement launching the deal with the accounting software firm, the Hammers have confirmed the veracity of those pictures.

The value of the deal has not been reported, but sleeve deals in West Ham’s peer group are typically worth single-figure millions.

The East London club’s previous partnership with sportswear retailer JD Sports, for example, was worth £2m per season.

The QuickBooks deal is likely to represent a small uptick in value.

How can West Ham boost commercial income?

In an era in which the ability to spend in the transfer market is anchored to a club’s revenue under the terms of PSR, commercial income has never been more critical to clubs like West Ham.

One obvious are where the club could rake in more sponsorship income is through a naming rights deal for the London Stadium.

Granted, that is not entirely within their control, given that the ultimate responsibility of securing naming rights partnership falls to the LLDC, the London Stadium’s landlords.

However, the imminent departure of a number of key figures from LLDC and the cultural change that will surely bring could present an opportunity to reopen a dialogue about naming rights.

LLDC would be entitled to the first £4m of any deal, plus a 50 per cent cut of any additional cash. And while that would take a chunk away from West Ham, any cash is better than no cash.

One stumbling block in that department, however, could be the competition in the naming rights market at the moment,with Spurs, Everton and Man United also looking for branding deals.

Meanwhile, West Ham’s deal with Umrbo seems a little undervalued at £7m per season. Villa, Everton and Newcastle all have kit deals worth around the £20m mark.

And with the club’s front-of-shirt partnership with expiring at the end of 2024-25, and with West Ham unable to renew it due to the ban on front-of-shirt gambling sponsorship, the club could also push the envelope further in this department.