BBC.co.uk
The full extent of West Ham's financial strife has been uncovered after it
was revealed the personal debt of chairman Bjorgolfur Gudmundsson stands at
£300m. Gudmundsson bought West Ham for £85m in November 2006 and has
invested a further £30m in the club since then. However, the 67-year-old's
business has suffered a series of setbacks and his liabilities will increase
pressure for West Ham to be sold in the summer. "The situation is very bad,"
he told Icelandic newspaper Morgunbladid.
"I have everything on the line - personal liability extends to all of my
assets. "I'm left with the question, what is my position? I must admit that
I'm a little lost. I just don't know what I will be able to keep."
A consortium of creditors led by Icelandic bank Straumur - which is itself
in financial difficulties - are in talks about taking over West Ham.
However, control may end up in the hands of an asset management company
appointed by the Icelandic government. Whoever ends up in control,
Gudmundsson's situation is so bad that his creditors are thought to be keen
to cash in on one of his few remaining assets, meaning all that is needed is
for someone to make a reasonable offer for the club. West Ham insiders,
though, insist they are wholly confident of meeting the conditions required
to receive a Uefa club licence - needed if they qualify for the Europa
League - and will submit the necessary accounts to the Premier League and FA
before the May 31 deadline.
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Gudmundsson reveals debt woe
Hammers chairman facing financial ruin
Last updated: 6th May 2009
SSN
West Ham chairman Bjorgolfur Gudmundsson has personal liabilities of
£301million, it has been revealed. The staggering debt is set to increase
pressure on the Icelandic businessmen to sell his stake in the Hammers this
summer. Gudmundsson admits his situation has deteriorated at an alarming
rate during the ongoing global credit crunch, and he is now facing the
prospect of financial and personal ruin. Creditors are keen to help as much
as possible, but that means finding a suitable buyer for his share in West
Ham. Talks have been opened with Icelandic back Straumur, but they too are
currently experiencing monetary difficulties and any deal could see the
Icelandic government take control of asset management at Upton Park. "The
situation is very bad. I have everything on the line - personal liability
extends to all of my assets," Gudmundsson told Morgunbladid. "I'm left with
the question, what is my position? I must admit that I'm a little lost."
Asked whether he would even lose his palatial home in Reykjavik, Gudmundsson
replied: "I just don't know what I will be able to keep." The financial
difficulties surrounding West Ham has put the club's potential route into
next season's Europa League under threat. However, the Hammers, who are
still chasing a seventh-placed finish in the Premier League, are confident
they can meet the conditions required to receive a Uefa Club licence
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Hammers set for new owners
No concern over Europa League participation
Last updated: 6th May 2009
SSN
Sky Sports News understands takeover talks at West Ham are "progressing
well" and the club are set for new ownership at the end of the season. A
consortium, led by Icelandic bank Straumur, is expected to take control of
the club after the collapse of West Ham's holding company, Hansa, which is
owned by their chairman Bjorgolfur Gudmundsson. Straumur, Hansa's major
creditor, is likely to take over at the end of the season in a move that,
sources say, will have little impact on the day-to-day running of the club.
Sky Sports News' chief news reporter Bryan Swanson understands West Ham are
waiting for the ownership issue to be concluded before they submit their
accounts to a joint Premier League and FA committee to meet the demands of
the UEFA Club license, which is necessary to enter all UEFA competitions.
West Ham missed the initial deadline to submit documents, 30th April, and
one report claimed it could jeopardise their place in the Europa League next
season, should they qualify.
But Swanson has been told the club's lawyers are "relaxed" they will meet
the licence conditions by the end of the month.
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