West Ham’s accounts outline the club’s fear of falling into financial meltdown, with Premier League survival described as an ‘absolute necessity’ after pre-tax losses of £28.2million amid a significant increase in wages.

Only goal difference is keeping David Moyes’ side outside of the bottom three and the impact of dropping down to the Championship would have ‘serious financial consequences’, Tuesday’s report reveals. 

West Ham, who host Liverpool at the London Stadium on Wednesday, saw their wage bill rise by almost £30m in 2018-19, going from £106.6m to £135.8m after heavy player investment.

West Ham owners (L-R) David Sullivan and David Gold are under increasing pressure

West Ham owners (L-R) David Sullivan and David Gold are under increasing pressure

West Ham owners (L-R) David Sullivan and David Gold are under increasing pressure

West Ham's accounts show how financial stability could be threatened by relegation

West Ham's accounts show how financial stability could be threatened by relegation

West Ham’s accounts show how financial stability could be threatened by relegation

David Moyes' side are only outside of the relegation zone on goal difference

David Moyes' side are only outside of the relegation zone on goal difference

David Moyes’ side are only outside of the relegation zone on goal difference

That went towards recruiting the likes of Jack Wilshere, Felipe Anderson and Andriy Yarmolenko, yet they have now secured only three wins since September and sacked Manuel Pellegrini in December.

David Sullivan confirms they spent £107.9m on signings in the summer of 2018, following Pellegrini’s arrival. 

They also have a net spend of £214.4m on signings over the last four years.

West Ham fans protested the club's ownership before their recent match against Everton

West Ham fans protested the club's ownership before their recent match against Everton

West Ham fans protested the club’s ownership before their recent match against Everton

West Ham fans displayed a banner during the protests in honour of their former stadium

West Ham fans displayed a banner during the protests in honour of their former stadium

West Ham fans displayed a banner during the protests in honour of their former stadium

Pellegrini is described as a ‘world-class manager’ in the club’s accounts. Former boss Moyes replaced him and fans have recently protested against the ownership of David Sullivan and David Gold.

In the report, Sullivan writes: ‘The board made a decision at the beginning of 2018 to embark on an investment programme that would involve bringing in a world-class manager, investing in better players and making significant investment into the club’s infrastructure.

‘As a result of this new strategy we signed Manuel Pellegrini, who has the most successful track record as a manager in the club’s history, invested £107.9m in transfer fees and grew the wage cost to £135.8m for the first team squad, management and staff and invested £4m into facilities at Rush Green (for the first team) and Chadwell Heath (for the academy). We also spent £0.6m in setting up a women’s team in the FA Women’s Super League.’

West Ham's departure from Upton Park to the London stadium has not been too popular

West Ham's departure from Upton Park to the London stadium has not been too popular

West Ham’s departure from Upton Park to the London stadium has not been too popular 

Sullivan’s statement was written in October, when the club were in good form under Pellegrini and were chasing European qualification as they sat eighth in the Premier League.

The highest-paid director at the club was Karren Brady, whose salary increased from £898,000 to £1.136m.

West Ham claim their losses of £28.8m were largely down to investment in the squad and facilities at their Rush Green training ground, which has been criticised recently.