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West Ham target £75m prize after Bayern Munich-linked business talks

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West Ham want to take advantage of a £75m financial pot, which would help fund Julen Lopetegui’s transfer spending in future windows.

The Hammers are one of only a handful of Premier League clubs who have avoided posting big financial losses in consecutive seasons in recent years.

That means they have plenty of headroom in terms of domestic Profit and Sustainability Rules, which limit clubs to losing £105m over a rolling three-year period.

West Ham United Training Session
Photo by West Ham United FC/West Ham United FC via Getty Images

Their success in Europe under Lopetegui’s predecessor David Moyes has played a big part in this, brining enhanced broadcast, matchday and commercial income.

In that latter category, West Ham have earned £41m in each of the last two financial season, thanks mainly to their sponsorship deals with Betway, Umbro and JD Sports.

But one sponsorship category remains conspicuously unfilled

And the latest report shows West Ham what they might be missing.

West Ham want to cash in on £75m sponsor pool

Since moving into the London Stadium in 2016, the subject of naming rights has been consistently raised.

The issues is complicated given that the London Stadium landlords, LLDC, bear the ultimate responsibility for finding a partner.

The relationship between the two has been turbulent, but the departure of a number of key figures from LLDC could represent an opportunity for West Ham to get a deal over the line.

LLDC would be entitled to the first £4m of any deal, with the remaining cash split 50-50 between themselves and the club.

West Ham vice chair Karren Brady has previously said that a naming rights deal looks a remote possibility, and the value of a would-be agreement is decreasing year on year.

However, a new report from finance industry experts Kroll has found that the Premier League is the most valuable league in terms of naming rights, with the potential to generate £75m from branding deals.

West Ham were previously in talks with German financial services company Allianz, which would have brought them into the same sponsorship network as Bayern Munich.

Bayern’s stadium also carries the Allianz brand as part of a deal worth around £10m per year.

As well as Bayern, Italian giants Juventus also have a stadium naming rights deal with Allianz, proving that the company sees the value of sports sponsorship.

David Sullivan and his colleagues on the West Ham board have made no secret of their ambitions for the club to be self-sufficient.

That is part of the reason that West Ham have implemented a controversial new ticketing policy, which some fans claims is pricing them out of supporting the club.

They would claim that, without injecting more capital into the club, increased commercial, matchday and broadcast income is the only way to fund ambitious new signings.

They have made Max Kilman and Luis Guilhereme their first additions of the summer, and now Barcelona’s Sergi Roberto is also being linked with West Ham.

Arsenal are also said to be in contention to sign Roberto, illustrating the competition the Hammers face in the transfer market.

FC Barcelona v Rayo Vallecano - LaLiga EA Sports
Photo by Eric Alonso/Getty Images

Despite the Gunners’ links, West Ham are believed to be in a strong position to secure Roberto’s signature.

And to continue targeting players of Roberto’s calibre in future windows, commercial income will be a key growth area.