West Ham United face a ‘very challenging’ period financially following their relegation from the Premier League.That is according to football finance expert Kieran Maguire after the Hammers dropped into the Championship.West Ham have been handed a warning over their finances following relegationGettyNuno Espirito Santo’s side failed to beat the drop despite beating Leeds United 3-0 on Sunday.Due to Tottenham Hotspur also winning, the Hammers finished two points adrift of their London rivals.As a result, the club’s 14-year stay in the top-flight has come to an end.Next term will mark only the second time in 22 seasons that West Ham have played outside of the Premier League.West Ham latestMaguire has now revealed the financial impact of relegation on the club moving forward.He joined Jeff Stelling and Ally McCoist on Tuesday’s talkSPORT Breakfast show to react to the Hammers’ relegation.Asked if West Ham now face a financial crisis, Maguire explained: “It’s certainly going to be very challenging.“In the last set of accounts, they generated £228million of revenue. I think that’s likely to take a hit of around about £100million.“So there’s a big gap. The wage bill is significant. The average wage is over £70,000-a-week. I think many players will have relegation clauses.“I think the thing that worries me most of all is that West Ham have spent a lot of money in the transfer market and they owe £196million in unpaid transfer fees as of the end of 2025.The Hammers were relegated on Sunday following 14 years in the Premier LeagueGetty“Those instalments have to be paid on a year-by-year basis and you do wonder where their cash is to pay them over the course of the next 12 months unless the owners put in some cash themselves.”Rice sale ‘papered over cracks’West Ham have avoided PSR breaches in recent years, despite their potential financial concerns ahead of next season’s Championship campaign.However, Maguire has explained that this was in part down to the sale of Declan Rice three years ago.The England midfielder was sold to Arsenal for £105million in July 2023.When asked if lower salaries, lower rent at the London Stadium and parachute payments can help to balance the costs of relegation, Maguire added: “No, because even when they were in the Premier League, they were losing £100million-a-year.“The sale of Declan Rice in 23/24, that papered over the cracks to certain extents as far as their compliance with PSR was concerned and that was a fantastic windfall for the club for a magnificent football player.Rice’s £105million move to Arsenal in 2023 ‘papered over the cracks’ for West Ham with PSRGetty“But if they’re losing £2million-a-week in the Premier League, then even if they’ve got wage savings and so on, it is going to be very challenging.“If you take a look at the annual report of the club, the owners admitted that relegation was a problem and, secondly, that it would need funding.“Now if you’re a bank manager, why would you lend to West Ham? They do have an existing overdraft, but that’s due for repaying at the end of July this year.“So I think the owners, and David Sullivan does have wealth, Daniel Kretinsky does have wealth.“I guess they would have to be the main source of funding on top of player sales and West Ham do have some players who would be coveted by other Premier League clubs as well as those on the continent.”West Ham face a busy summer of player sales following their relegation to the Championship.Meanwhile, manager Nuno is set to be sacked by the club after eight months in charge.The Portuguese replaced Graham Potter in the dugout in September but failed to keep his side in the Premier League.