West Ham try to play down financial woes
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West Ham United have moved to calm fears amongst supporters that the club will be impacted because of Icelandic bank Landsbanki going into administration.
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Bjorgolfur Gudmundsson's assets have taken a significant hit which will hit West Ham.
Hammers chairman Bjorgolfur Gudmundsson is a major shareholder in the bank, the second biggest in Iceland, and chaired the company until he was sacked yesterday when the Iceland government yesterday took control.
Amid growing fears that the club will either be sold or that Gianfranco Zola will be unable to strengthen his squad in January both chief executive Scott Duxbury and vice chairman Asgeir Fridgeirsson are insisting there will not be repercussions at Upton Park.
''The position of Landsbanki has absolutely no effect on West Ham United and Mr Gudmundsson's ownership of the club. Mr Gudmundsson is an investor with a large portfolio, of which Landsbanki was just part. He remains as committed as ever to West Ham United and is not looking to sell the club,'' Duxbury said.
The chief executive also told the club's website: ''As has previously been stated, Mr Gudmundsson has invested £40million net in the playing squad to create a squad capable of challenging in the top half of the Premier League.
''Since his appointment, Gianfranco Zola has made it quite clear that his first-team squad is too large and needs to be reduced so he can effectively coach the team. Once this has happened and if the manager requires further players, then the club will acquire them.
''Mr Gudmundsson remains fully committed to the success of this football club and building on the excellent start made by Gianfranco Zola.''
Singing from the same hymn sheet Fridgeirsson told Sky Sports News: ''The government has claimed shares in the company which means that the government has claimed control. That means basically that we have lost it. I don't think there's any reason to be too pessimistic. West Ham United is a wonderful club and a well-run company. This investment was very important for him, but not his only one.
''It is, of course, a blow for him and his financial strength, but he himself has a number of other investments that are doing quite well at the moment so there is no reason to fear that he will not honour his commitment to West Ham football club.
''He (Gudmundsson) is not absolutely sure how this will directly affect him, but one thing he is sure of is that this will have no implications on the other investments of him and his family.''
In September the Hammers were left with a potential £5million shortfall after the club's shirt sponsor, XL, went bust. Then, two weeks ago, an independent tribunal ruled against West Ham in the Carlos Tevez transfer affair, leaving them liable to a £30million compensation claim.
Although Fridgeirsson insists that Gudmundsson has no plans to sell the club he did admit that several parties have expressed an interest in the club.
Newspaper reports last weekend suggested that Indian billionaire Anil Ambani is poised to make a bid for the club and this speculation is likely to increase in the coming days as West Ham's situation become clearer.
However, Ambani has been linked with several clubs in the last few weeks, including both Newcastle and Everton.
extracted from soccernet.
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NO >< I just started supporting them
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West Ham United feel blast from world’s financial turmoil as Icelandic bank fails
Set to go under the Hammer
GIANFRANCO ZOLA is the first Premier League manager to be hit by the credit crunch. West Ham’s boss has been told he must sell his stars before he can buy, after the global money crisis bit hard into Upton Park.
Zola finds himself slap bang in the middle of the financial meltdown that has hit the club’s Icelandic owner Bjorgolfur Gudmundsson.
Businessman Gudmundsson’s 40 per cent stake in the Landsbanki bank — worth millions — has virtually disappeared, after the Iceland government bailed it out of financial mayhem yesterday by taking it over.
West Ham have already been hit by the collapse of holiday firm XL, who were the club’s sponsors. Now Gudmundsson, who bought the Londoners for around £75million two years ago, has been caught out.
Gudmundsson and his son had also guaranteed loans believed to have topped £100m for XL. But the cut-price company has now gone bust. The recent action taken by Sheffield United is hanging over West Ham’s heads as well. The Blades are claiming around £30m in lost revenue from when they were relegated following the Carlos Tevez affair.
The nightmare in Iceland has far-reaching implications and there is a danger the Hammers could be forced into a reluctant fire sale of top stars such as keeper Robert Green, centre-back Matthew Upson, midfielder Mark Noble and forwards Craig Bellamy and Dean Ashton.
England internationals Ashton, 24, Upson, 29, and Green, 28, could be expected to fetch around £10m, £8m and £6m respectively. England Under-21 ace Noble, 21, would be worth about £6m and much travelled Welsh star Bellamy, 29, close to £10m.
Zola: an unhappy return to the premiership.
Zola has a first-team squad of around 35 and, in meetings with the club’s hierarchy, has acknowledged it needs to be trimmed further than the sales made under previous manager Alan Curbishley. West Ham’s Icelandic vice-chairman Asgeir Fridgeirsson insisted there are no grounds for any concern. But Gudmundsson has been seen rarely at Upton Park this season and is believed to be in Portugal. And Fridgeirsson admitted there would be no more investment in the club, other than the £30m already ploughed in, and that players must be sold before there is any buying.
He even revealed there are vultures already hovering and waiting to snap up the East London outfit, still sixth in the Premier League despite last Sunday’s 3-1 home embarrassment by Bolton.
Fridgeirsson said: “We have a very big squad. Our manager feels it is not necessary for it to be of that size, of nearly 35 players. “So the money for further transfers would need to be generated by sales.
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nah bei
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West Ham going the way of Leeds United...
1st start selling all of their high earners...
2nd start selling most if not all of their quality youth players.
3rd get relegated
4th get into debts so deep that they will take a few years to be clean again.
Looks like its Bye bye to West Ham... And lastly, Zola, zola... your first serious management job and you blow it big time... And his silly assistant who took Mourinho's advise to join him in a sinking ship...
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Zola ----> Newcastle 0.o
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well, it was coming isnt it. iceland bank is the most leverage among EU banks. it has to raise captial now, trying to borrow from russia and other country. but under such circumstances, who will?
not to mention iceland has the highest inflation among EU country. around 15-20%.
if i am west ham fans... it spell trouble.