What happens now at relegated West Ham?

It has been less than three years since approximately 70,000 jubilant fans congregated to celebrate West Ham's triumphant return to east London with the Europa Conference League trophy in hand. Their 2-1 victory over Fiorentina in Prague marked the end of a 40-year wait for silverware, suggesting a promising new chapter for a club previously marred by disputes and dissatisfaction following its controversial transition from Upton Park to London Stadium in 2016.

Interestingly, one financial advantage stemming from relegation is a reduction in the stadium costs, with London Mayor Sadiq Khan estimating an annual saving of £2.5 million for West Ham to play at the 62,500-capacity venue in Stratford. However, this benefit is relatively minor in the context of the club's overall financial situation.

West Ham's departure from the Premier League after 14 seasons has invited considerable criticism from supporters, as well as heightened uncertainty regarding the club's future. In their final match against Leeds, the team needed both a victory and a favorable outcome from the Tottenham-Everton game to have any hope of survival. In the hours leading up to the match, fans appeared resigned to the inevitability of relegation, opting instead to enjoy the warm weather rather than reflect on a disappointing season.

Frustrations flared when West Ham took the lead against Leeds midway through the second half, leading to vocal discontent directed at chairman Sullivan, who is widely blamed for the club's current situation.

Looking ahead, Sullivan can draw on positive precedents in his attempts to secure an immediate return to the top division. He successfully navigated similar scenarios twice at Birmingham, in 2007 and 2009, and again with West Ham in 2012. During those times at St. Andrew's, he was rewarded for maintaining the managers who oversaw relegation—Steve Bruce and Alex McLeish. With West Ham, his decision to appoint Sam Allardyce resulted in a successful play-off campaign that restored the club to the Premier League.

However, West Ham's current circumstance is different. Sullivan no longer has his longtime partner, David Gold, who passed away in January 2023. Gold's daughter, Vanessa, holds a 25.1% stake in the club, alongside US businessman Tripp Smith’s 8%. In addition, Royal Mail owner Daniel Kretinsky is in the process of acquiring more shares, aiming to match Sullivan's 38.8% stake. Furthermore, Sullivan's trusted vice-chair Karren Brady resigned in April, and Karim Virani has since stepped in as chief executive.

There are significant financial concerns to navigate as well. West Ham recorded a substantial loss of £104 million in their latest financial report available until May 31, 2025, and forecasts suggest yet another considerable loss for the current year. While this presents challenges, the English Football League's implementation of Squad Cost Rules for the 2026-27 season may alleviate some budgetary pressures. The specifics of these regulations are still forthcoming; however, clubs will be permitted to spend up to 85% of their income—an amount that West Ham is expected to surpass compared to its Championship counterparts.

Despite this, financial analyst Swiss Ramble outlined that West Ham's squad cost ratio for the 2024-25 season was 90%, clearly indicating the ramifications of relegation within their recent financial disclosures. The report stated, "The Group's principal business risk remains that of the men's football club being relegated with serious financial consequences which follow." In light of relegation, the club anticipates the need for significant actions, including player sales to generate transfer income and substantial wage reductions.

Internal estimates suggest that total revenues may decline by 50% to 60%. The revenue reported in West Ham's most recent accounts was £227.6 million, indicating a drop from £269.7 million the previous year.

What happens to Nuno?

Upon his appointment in September to replace Graham Potter, Nuno Espirito Santo signed a three-year contract. His tenure began on a challenging note, winning only two of his first 15 Premier League games while the team found itself seven points adrift of safety. Nonetheless, West Ham rebounded, losing only three of the next 13 matches, inching two points ahead of Tottenham.

Despite the disappointing conclusion to the season, sources indicate that the club prefers to maintain stability over the summer and would like Nuno to remain as manager. However, his interest in continuing in the Championship remains uncertain, particularly given his previous success in leading Wolves out of the division in 2018.

Following the conclusion of Sunday’s match, Nuno refrained from discussing his future, emphasizing, "None of us had a minute to think about our individual future; it was all about trying to stay positive and keep going and focus on the team. Anything regarding the future comes after this difficult moment."

Jarrod Bowen stands out as the most valuable player within West Ham's roster. Alongside Tomas Soucek and goalkeeper Alphonse Areola, he is one of only three survivors from the squad that celebrated in Prague. Bowen's value was acknowledged in the seven-year deal he signed just four months post-victory. The question now remains: Will he remain at the club?

Although Bowen is undoubtedly a prime asset for sale, the hope is that he will spearhead the charge for promotion. Upon confirming his contract status in the wake of relegation, Bowen stated to Sky Sports, "I'm under contract here. There's going to be rumors, talk, and nonsense out there but, ultimately, what I see is getting this club back in the Premier League. That's where it deserves to be."

Players will be sold - but which ones?

Changes are imminent within the squad, as many players face significant wage reductions—up to 50% in some cases—due to contractual clauses triggered by relegation, as reported by BBC Sport. Players like Axel Diasi, Adama Traore, and Callum Wilson are nearing the end of their contracts this summer.

Midfielder Mateus Fernandes is drawing interest from Paris St-Germain and Manchester United, and he appears set to leave, with West Ham optimistic about recouping a substantial profit on the £40 million they invested in him last August.

Senegalese defender El Hadji Malick Diouf, acquired for £19 million from Slavia Prague, is another player who could be sold profitably.

However, there are several players within the team whose departures may prove challenging due to past recruitment missteps since the notable night in Prague. The substantial £105 million earned from Arsenal for Declan Rice has been poorly reinvested.

Max Kilman, who was signed for £40 million from Wolves in 2024 on a lengthy contract, has not featured since January. German striker Niclas Fullkrug, who signed a four-year contract in 2024 at 31 years old, went on loan to AC Milan in January after a disappointing spell in which he netted only three goals across 29 appearances.

James Ward-Prowse remains under contract for another year after joining from Southampton, despite joining Burnley on loan in January after limited playing time.

With the challenges facing West Ham, next season presents a reality that fans who celebrated the success in Prague could hardly have anticipated. There is considerable work ahead if they are to achieve their ambitions.