Question 14

Hammers announce return to profit

West Ham have described pre-tax profits of £11.8m for the year ending May 2004 as "little short of extraordinary". The London club had a deficit of £5.3m in their last year in the Premiership but, since relegation in May 2003, have turned that loss into a profit. A total of £24.8m was brought in through the sale of 10 players, while the wage bill has been cut by £10m.

Chairman Terence Brown described the results as "a remarkable achievement under the circumstances".

Source: BBC News 28^th October 2004 (adapted)

Questions What was the increase in profits for West Ham? How much was received on average for the sale of a player? Suggest three ways in which the wage bill could have been cut.