The potential relegation of West Ham United or Tottenham Hotspur could have significant repercussions for their staff and local communities, according to a former chief executive of the Premier League.
Both clubs, which boast average attendances of approximately 60,000, would set a record as the largest teams ever relegated from the Premier League. Financial analysts predict that West Ham could face losses of around £100 million, while Tottenham might see losses as high as £261 million, with effects rippling throughout the region.
„It’s really the off-pitch side that gets hurt the most,“ said Keith Wyness, former chief executive of Aston Villa.
Impact on Employment and Community Programs
Wyness, who joined Villa shortly after their relegation in 2016, recalled the difficult decisions he faced regarding staffing cuts. „In the Villa case, nearly 250 people in the end had to be reduced from the payroll. It was brutal. A lot of the cuts came in the sponsorship and commercial revenue side, where there was less need to service some very complex deals, but you have to look at streamlining every part of the club,“ he explained.
Another critical concern is the charitable foundations operated by both Tottenham and West Ham, which play an essential role in their communities. These foundations provide mentoring, education, and employment opportunities, reaching out to some of the most vulnerable populations in London.
„We made sure the foundation itself stayed as strong as possible,“ Wyness noted. „But it had to be scaled back, there’s no doubt. It’s certain that a lot of the plans we had to grow or develop those areas had to be put on hold.“
Local Businesses Brace for Changes
On Tottenham High Road, local bar and café owners are expressing concerns about a potential decline in foot traffic during match days. Asllan Islami, general manager of the Blue Coats pub, shared his apprehensions: „It is a bit of a nervous time. We won’t have those key London derbies against Arsenal and Chelsea, or those regular big matches against Manchester United, Manchester City, or Liverpool.“
Despite these worries, Islami remains hopeful. „On the flip side, there would be four extra home games in the Championship, and if Tottenham were having a good season, I’m confident the crowds would still come,“ he added.
Historically, when Newcastle United faced relegation in the 2015-16 season, their attendance actually increased slightly during a successful Championship campaign, leading to an immediate return to the Premier League as champions. Similarly, Aston Villa experienced only a 5% decrease in average attendance during their three years in the Championship compared to their previous Premier League seasons.
Challenges of a Cost-of-Living Crisis
However, neither Newcastle nor Villa had to fill stadiums as large as those of Tottenham or West Ham during a cost-of-living crisis. Additionally, they did not contend with the intense competition for entertainment options available in London.
„Crowds stayed pretty strong,“ Wyness remarked. „Though of course, there was absolutely no room for increasing ticket prices. And when it came to the top-end hospitality, we had to be really creative. It’s much harder to try and sell those areas when you don’t have the attractive Premier League fixtures every week.“
Wyness cautioned that both West Ham and Spurs need to be cautious. „They can’t focus on revenue streams they had built on the Premier League model. They’ve got to be realistic about it – no rose-tinted glasses. They’ve got to realize who they are right now. Some of those fixtures will not be so attractive.“
Financial Implications of Relegation
Potential Championship matchups, such as Tottenham versus Lincoln or West Ham against Stockport, would likely be much harder to market compared to traditional rivalries like Spurs versus Arsenal or West Ham versus Chelsea.
Currently, Tottenham charges fans an average of £76 for each home match, ranking among the highest in Europe. It is anticipated that their matchday revenue, projected at £131 million for the season, could plummet to approximately £79 million in the Championship.
In a recent economic impact report, Tottenham claimed to generate £344 million for the local economy and aims to increase that figure to £585 million by the 2026-27 season. The club also stated that it supports 3,700 full-time jobs in the area, with a goal of raising that number to 4,300 during the same period. Relegation would almost certainly impede their ability to meet these targets.
Concerns for Local Taxpayers
In Stratford, a relegation for West Ham would have financial implications for every London taxpayer. As tenants of the London Stadium, the terms of their agreement with former Mayor Boris Johnson stipulate that their annual rent would be halved in the event of relegation, reducing it to just £2.2 million per year. Furthermore, the Greater London Authority would be responsible for covering the running costs of the additional four home games, resulting in an estimated cost of around £2.5 million annually for Londoners.
„It’s just a very worrying time,“ Wyness said regarding the feelings of off-field staff at both clubs. „There will be people, especially in the present financial climate, who will be very concerned, and that will translate into their job performance. It’s so important for the leaders off the pitch in the club to be able to handle this with great humanity.“
When asked about the preparations for potential relegation, both clubs declined to comment. Wyness expressed hope that they are planning adequately, stating, „You’ve got to be getting all your consultations ready in terms of layoffs and all that sort of thing, and I’m afraid it’s just not pretty but this is the time to focus and be professional.“
With so much at stake beyond the pitch, the players of Tottenham and West Ham will be competing for more than just professional pride in the coming weeks as they strive to maintain their positions in the Premier League.
