West Ham could be left with a relatively small budget if the Premier League pushes ahead with the new PSR system.

For years, teams have got away with no more than a slap on the wrist for breaching Financial Fair Play, but that’s no longer the case. We have already seen Everton get two points deductions as well as Nottingham Forest getting one. The Premier League clearly aren’t messing around anymore and they are looking to change the rules that clubs will have to abide by.

While there were a number of potential systems, it seems like all 20 clubs have now agreed to Profit and Sustainability Rules. What this means is that clubs will be able to spend 85% of their revenue on transfers, wages and agent fees.

The big question is, how will this affect West Ham? Well, according to Claret and Hugh it will leave them with a rather lacklustre budget, especially considering how big of a rebuild they need this Summer.” As West Ham turnover was £237m last season it would mean they could spend £201m on wages, agent fees and transfers,” they stated.

“With the Hammers wages running around £137m and £13m  of agent fees that new financial model would leave around £51m in transfer amortisation for West Ham.”

At first, this seems concerning but this obviously does not take into account any potential player sales. On top of this, the Hammers have already been abiding by an extremely similar, yet stricter version of this due to being in European competitions for the past 3 years. UEFA’s version allowed for spending of only 70% of a club’s revenue.

Overall, these new regulations are unlikely to have a dramatic impact on our Irons. No matter your opinion on the current ownership, there is no denying that they run the club extremely well from a financial point of view and it is hard to imagine them steering us towards any sort of issues from that perspective.