EPL Club West Ham Faces Financial Questions After Bank Collapse
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Guðmundsson Says There Are No Immediate
Plans To Put West Ham United Up For Sale |
There are concerns that English Premier League (EPL) club West Ham United is "on the brink of a financial crisis," as Owner Björgólfur Guðmundsson was "dragged into the global credit crisis" following the collapse of Iceland-based bank Landsbanki, for which Guðmundsson serves as Chair, according to Gary Jacob of the LONDON TIMES. Guðmundsson said that there are "no plans to sell" the club, but he "could not rule out the possibility if his other investments are affected by the turmoil in the markets." Guðmundsson has "refused to consider interest from at least one serious potential buyer in recent weeks, but is bound to find more vultures circling over the coming days." Jacob notes West Ham currently is "worth nearly three times" the US$148.9M Guðmundsson paid for the club in '06. West Ham Vice Chair Asgeir Fridgeirsson: "At the moment, we are not actively in the process of selling the club and as it stands there is not a need to do so" (LONDON TIMES, 10/8). The PA's Rich Jones notes the nationalization of Landsbanki left Guðmundsson with a "major shareholding which at a stroke became almost worthless." But West Ham CEO Scott Duxbury said, "The position of Landsbanki has absolutely no effect on West Ham United and Mr. Guðmundsson's ownership of the club" (PA, 10/8). A West Ham BOD member yesterday said of Guðmundsson, "He has told us there is no implication, no impact. It's business as usual. He remains fully committed. He has taken a big hit, but this has not impacted on his personal wealth" (London INDEPENDENT, 10/8).
YARD SALE: Investment firm Seymour Pierce Chair Keith Harris, whose company was hired by EPL club Newcastle United Owner Mike Ashley to help find a purchaser for the club, "warned that the global economic crisis could thwart" Ashley's attempt to sell the franchise. Harris said that there "had been a good initial response to Newcastle being put on the market, but conceded that the credit crunch could hinder his efforts" to find a buyer. Former Newcastle Chair Freddy Shepherd added, "No one's going to give Mike Ashley a huge profit for the club now; you don't have to be a rocket scientist to work that one out." Harris also denied that "bidders for the club had been set a deadline" of last night (London TELEGRAPH, 10/8). Meanwhile, in London, Steve Wilson reported two investor groups, one from the Middle East and one from the Far East, "are in competition to buy" EPL club Everton. The sale is also being brokered by Harris. Wilson noted the Middle East group is "believed to be another sovereign wealth fund," similar to the group that acquired Manchester City (London TELEGRAPH, 10/5).
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