Potential buyers sign confidentiality agreements
Last updated: 17th December 2008
SSN
The potential sale of West Ham has moved a step nearer - although no
concrete offers have yet been made for the club. West Ham vice president
Asgeir Fridgeirsson said on Wednesday that confidentiality agreements have
been signed with 'several parties', thought to number between five and ten.
This allows the potential buyers to see detailed information on the club,
which they can not divulge to anyone else. This move comes as Bjorgolfur
Gudmundsson - who led an £85million buy-out for the club two years ago - has
reportedly been forced to consider a sale following the collapse of
Icelandic bank Landsbanki of which he held a 41 per cent stake. But
Fridgeirsson insisted that no concrete offers had yet been made for the
London club. He said: "We have been going over all of Bjorgolfur
Gudmundsson's and Hansa's (Gudmundsson's holding company) assets with our
consultants and that includes West Ham. "We have signed confidentiality
agreements with several parties, which means that we will provide them with
the necessary financial information and they undergo not divulging any of
this information to a third party. So far we haven't received any concrete
offers."
Fridgeirsson declined to say how many interested parties there were, but
disclosed it was 'a fleeting number'. On Tuesday, lawyers for Hansa valued
the club at about £250 million in court papers. Fridgeirsson added: "There
are many people interested, but this is not about interest but about
ability. "There is nothing that says that the current market is willing to
pay £250 million, nor that this is the figure we are looking for."
Gudmundsson has emerged as a high-profile victim of the global financial
crisis. His family were major shareholders in Landsbanki, which the
Icelandic government took over in October as the country's financial system
came close to a collapse
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From The TimesDecember 18, 2008
The Times
Icelandic owners put high price on West Ham
Gudmundsson is looking to sell the club for £250m
Gary Jacob
West Ham United were already a questionable purchase in the short term, but
the chances of concluding a takeover appeared more unlikely after their
Icelandic owners formally valued the club at £250 million last night, more
than double what they paid two years ago. The owners, who put the value in
court papers lodged in Iceland, appointed a bank several months ago to
determine the extent of interest in the club, but their difficulty in
attracting serious buyers was highlighted yesterday by their attempts to
stoke up interest.
Björgólfur Gudmundsson's valuation of his club would even have been
excessive eight months ago, before the full effects of the global economic
crisis were known. But potential buyers are also concerned by the chance
that the club could be relegated, debts approaching £50 million and unknown
liabilities that may need to be paid to Sheffield United for the Carlos
Tévez affair.
Similar concerns have impacted on other owners trying to sell Barclays
Premier League clubs. Newcastle United, Portsmouth and Everton have
effectively been up for sale for some time, but none are close to a
takeover. Global financial turmoil has made a dent in the pockets of
potential investors, who fear that clubs are overvalued, even without the
potential for reduced future income from sponsorship, advertising and
ticketing revenue.
West Ham's difficulties arose after Gudmundsson lost hundreds of millions of
pounds after the collapse of Landsbanki, the Icelandic bank of which he was
chairman and a major shareholder, in October. Asgeir Fridgeirsson, the
club's vice-chairman, admitted for the first time that the club are seeking
a buyer. "There is a great interest in the club and many interested parties
are calling to show interest," Fridgeirsson said. "We are reviewing the
asset, looking at what might be the value of the club. It is part of
reviewing the assets of Mr Gudmundsson.
"Following such a review we will take a decision whether to sell or not. We
don't have to sell. It's a process where we are gathering options and
information to see what is out there in terms of demand."
In reality, West Ham need to be sold by early January to ensure that
transfer funds can be made available to Gianfranco Zola, the manager, to
ensure their survival in the top flight this season. They are only a point
above the relegation zone, despite a hard-fought 1-1 draw away to Chelsea on
Sunday.
Craig Bellamy and Matthew Upson are a target for bigger clubs, but Lucas
Neill has said that he wants to sign a new contract before his deal expires
this summer. The defender, 30, who earns £70,000 a week, asked for a rise
last summer but he is likely to be offered less than half that sum. He turns
31 in March. "I want to finish my career here," he said. "I know the
[financial] situation at the club and the way things have gone. I love the
club and the role they have for me.
"The players aren't worried [about relegation]. No one is thinking or
talking about leaving. I have had assurances from the manager that he wants
me to stay. He likes what he has here and wants to build on that. He doesn't
want to remove the quality he has because it will affect his plans massively
and what we are trying to achieve."
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Cash-strapped Icelandic owner looks to sell West Ham for £250m
Dominic Fifield
guardian.co.uk, Wednesday 17 December 2008 21.54 GMT
The long-mooted sale of West Ham United took another step towards
realisation last night as court documents filed in Iceland revealed that the
owner, Bjorgolfur Gudmundsson, values the Premier League club at around
£250m and has made financial information available to up to five potential
buyers.
Gudmundsson is under severe financial pressure following the collapse of the
Icelandic bank Landsbanki, in which he had a 41% stake, and is seeking to
restructure his existing assets as the recession takes its toll. A handful
of interested groups have since contacted Gudmundsson to sound out the
financier over a potential purchase, with non-disclosure agreements reached
with the various parties. These are binding in law and subject to
confidentiality agreements and allow the suitors to scrutinise financial
information about West Ham, although access to the accounts has been limited
with a process of due diligence yet to take place.
Initial offers put forward by several of those groups have fallen well short
of Gudmundsson's £250m valuation and no binding bids have been lodged, with
the club's hierarchy keen to stress that this is essentially a means of
establishing West Ham's market value.
"We are reviewing the asset, looking at what might be the value of the
club," confirmed the West Ham vice-chairman, Asgeir Fridgeirsson. "There is
a great interest in the club and many interested parties are calling. It is
part of reviewing the assets of Mr Gudmundsson. Following such a review we
will take a decision whether to sell or not. We don't have to sell. It's a
process where we are gathering information about the demand."
Gudmundsson, who purchased West Ham via WH Holding Ltd for £85m two years
ago, has been badly hit by the downturn in the economic climate with
Landsbanki put into receivership in October. Samson Holdings, the holding
company for shares in Landsbanki, filed for bankruptcy last month, while the
travel company XL, West Ham's shirt sponsors for whom Gudmundsson had been
the guarantor of a £163m loan given to the company, also collapsed in
October. The 67-year-old is currently in talks with the Icelandic government
and banks over restructuring his assets.
WH Holding Ltd currently has debts of some £50m, though Gudmundsson has
indicated that the club's proximity to the London 2012 Olympics site adds to
the club's worth. "The recent sale of Manchester City for £230m could give
reason to expect a higher price," his lawyers revealed in court papers. West
Ham is thought to be a more valuable club when looking at its location,
loyal fan base, more chance of real estate projects, proximity to the
Olympic Village and the fact that West Ham owns its ground. The City sale
leads us to expect that West Ham could be valued at more around £250m."
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Buyers eyeing up £250m West Ham
A valuation of £250 million has been placed on West Ham United, with
vice-chairman Asgeir Fridgeirsson admitting interest from several potential
buyers on Wednesday.
Telegraph.co.uk
By Jeremy Wilson
Last Updated: 11:21PM GMT 17 Dec 2008
Owner Bjorgolfur Gudmundsson has not yet made a final decision about selling
up, but he has given permission for non-disclosure agreements to be signed
with up to five possible investors.
The agreements allow the interested parties to look at confidential
financial information about West Ham on the condition they do not disclose
it. However, the agreements fall short of due diligence, which gives
prospective buyers full access to the club's accounts.
Several of those interested are understood to have put in opening bids that
have fallen short of what Gudmundsson would want.
"The recent sale of Manchester City Football Club for £230 million could
give reason to expect a higher price," Gudmundsson's lawyers said in court
papers. "West Ham is thought to be a more valuable club when looking at its
location in London, loyal fan base, more chance of linked real estate
projects, proximity to the Olympic Village and the fact that West Ham owns
its ground, which is not the case with Manchester City. The City sale
therefore gives cause to expect that West Ham could be valued at more that
£250 million."
Hansa, the holding company, have begun the process of administration and
Gudmundsson, who has been affected by the Icelandic economic crisis, is
reviewing his assets, including West Ham. However, Fridgeirsson admitted
that the figure of £250 million was not necessarily an asking price.
"We are reviewing the asset, looking at what might be the value of the
club," said Fridgeirsson. "Following such a review we will take a decision
whether to sell or not. We don't have to sell. We are gathering options and
information to see what is out there in terms of demand.
"We have signed confidentiality agreements with several parties, which means
that we will provide them with financial information and they undertake not
to divulge any of this information to a third party. So far we haven't
received any concrete offers. There is nothing that says that the current
market is willing to pay £250 million, nor that this is the figure we are
looking for."
West Ham's ownership is somewhat complicated but, though Hansa are the
holding company, there are also West Ham United Holdings Ltd and West Ham
United plc within the structure.
West Ham United plc are regarded as the member organisation by the Premier
League and Fridgeirsson has described West Ham as "fire-walled".
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Lower Tevez bill clears way to West Ham sale
Sheffield United unlikely to receive more than £10m from relegation dispute
By Jason Burt
Thursday, 18 December 2008
Independent.co.uk Web
The West Ham United owner, Bjorgolfur Gudmundsson, is to push ahead with the
sale of the club next year after being advised that the compensation to be
paid to Sheffield United over the Carlos Tevez affair is unlikely to be more
than £10m – a fifth of the total which was, at one time, demanded.
Advisers to the Icelandic businessman, whose finances have been devastated
by the collapse of his country's economy, claimed yesterday that
non-disclosure agreements had been signed with between "five and 10 parties"
interested in buying the club.
The agreements fall short of allowing due diligence – which would grant the
potential buyers access to the club's books – but interested parties will be
given detailed information on West Ham's finances, debts (around £40m) and
liabilities, which are expected to include a commitment by Gudmundsson to
cover the cost of the Tevez case.
There has been a handful of indicative bids but all have fallen far short of
Gudmundsson's valuation of the club, revealed in court documents filed in
Iceland by his holding company, Hansa, which has gone into voluntary
liquidation, to be £250m. A more realistic figure is thought to be £150m.
The 67-year-old is now in talks with the Icelandic government and banks
about how he can restructure his assets, including West Ham, of which he is
the sole owner. There have been suggestions he has been told to sell the
club by March, but these have been denied by his advisers, who maintain he
cannot be forced into such a move.
Gudmundsson's business empire has been devastated by recent events.
Landsbanki, the Icelandic bank in which he was the biggest shareholder, went
into receivership in October. Then Samson Holdings, the holding company for
shares in Landsbanki, filed for bankruptcy last month. West Ham's then shirt
sponsor, the travel company XL, had gone bust a month earlier and it later
emerged that Gudmundsson had been the guarantor of a £163m loan given to the
company.
This has all taken place with West Ham facing the prospect of paying heavy
compensation for fielding Tevez during the 2006-07 season and later
admitting that there were "irregularities" in the striker's ownership by
private investors.
West Ham were fined £5.5m by the Premier League in 2007 but since then have
had to fight potentially more damaging action from Sheffield United over the
cost of the club being relegated.
Both parties are due to meet an arbitration panel in March next year but it
now appears that, with discussions already under way on the amount of
compensation, they are moving towards an out-of-court settlement.
United originally claimed £30m, then increased that figure to £42m, then
£50m, but are understood to have since revised it down to £25m. West Ham,
meanwhile, have maintained that United have failed to factor in the costs of
being a Premier League club and that they were simply calculating on the
basis of banking the full amount of television and other revenues for being
in the top flight. The true value of losses suffered by United is somewhere
between £5m and £10m, West Ham say.
If that proves accurate it would ease the pressure somewhat on a sale and
make potential owners far less nervous about the future of the club,
although West Ham could also benefit from pulling further away from the
relegation places.
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Why Are West Ham A Bigger Attraction Than Toon?
NewcastleUnitedmad.co.uk
By Nu Mad Wednesday, 17th December 2008
West Ham's owner Bjorgolfur Gudmundsson has taken a step towards selling the
club after receiving several provisional offers. SO WHY THE HELL HAVE WE NOT
RECEIVED AN OFFER? Although the Icelandic financier has yet to make a final
decision about selling up, he has given permission for non-disclosure
agreements to be signed with up to five potential buyers. According to court
documents in Iceland filed by his holding company Hansa, he values West Ham
at £250million. The same price Mike Ashley values Newcastle. No binding
offers have yet been made to Gudmundsson, who bought the club for £85million
only two years ago.
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West Ham attracting possible bidders
Viewlondon.co.uk
West Ham United owner Bjorgolfur Gudmundsson could be close to selling the
club after it was revealed that at least five parties have registered
interest in taking over from him.
Gudmundsson's holding company Hansa has gone into voluntary liquidation
after he lost money in the economic downturn in Iceland, since then it has
been rumoured that Gudmundsson was open to offers for the Hammers.
It has now been revealed that between five and ten interested parties have
signed non-disclosure contracts with the club.
This is a step towards the due diligence process and gives the potential
buyers the opportunity to see some, but not all, of the club's accounts.
Despite entering into this process Gudmundsson has still not decided whether
to definitely sell the club and wants to make sure that any new owner would
have the ability to take the club forward.
West Ham vice president Asgeir Fridgeirsson told Reuters: "We have been
going over all of Bjorgolfur Gudmundsson's and Hansa's assets with our
consultants and that includes West Ham.
"We have signed confidentiality agreements with several parties, which means
that we will provide them with the necessary financial information and they
undergo not divulging any of this information to a third party. So far we
haven't received any concrete offers."
Gudmundsson is believed to value West Ham at £250 million, but Fridgeirsson
added: "There are many people interested, but this is not about interest but
about ability."
If Gudmundsson was able to get £20 million for the club it could present a
healthy profit for the Icelander. He bought the club for £85m in November
2006 and has invested a further £30m in the club since then.
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'I'm staying put at Upton Park': Lucas Neill
News.co.au
December 18, 2008 07:27pm
WEST Ham's Australian captain Lucas Neill says he has no plans to leave the
troubled English Premier League club despite it being put up for sale. West
Ham's Icelandic owner, businessman Bjorgolfur Gudmundsson, has put the club
up for sale for STG250 million ($A550.24 million) after falling victim to
the global credit crunch. The sale has sparked reports that West Ham might
try and offload some of their more expensive players, including Neill who
earns a reported STG70,000 ($A154,070) a week. But Neill, whose contract
expires in the middle of 2009, says he has no plans to leave and wants to
finish his career at Upton Park. "Inside the dressing room you can take it
straight from me that no one's thinking about leaving," Neill told Sky
Sports in Britain. "I've had assurances from the manager that he wants me to
stay. "I can't speak from a financial or board point of view but from a
player or coaching point of view, the squad needs to stay together." Neill
also denied reports that he had threatened to leave on a free transfer if he
wasn't given a pay rise. "No, not at all," he said. "My reaction was to
laugh it off. Obviously because it's clearly untrue, but for 40,000 West Ham
fans there is a different reaction. The first one is 'how dare he?' and 'how
greedy'. "I know the situation with the club and the way things have gone. I
love the club. I love the role that I have. I relish the challenge. "It's
just for me now being 31 in March, it's about being able to play as long as
I can."
Neill has held initial talks with the club about an extension to his
contract, but the length and terms of any deal have not been finalised.
"There's been no talk of how long, how much," he said. "It's just been a
case of me saying I want to finish my career at West Ham. " ... When the
time is right and when the time is right for the club, because it's not
their priority at the moment, then we'll do it."
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Everton, West Ham, Fulham to check on Stranzl
18.12.08 | tribalfootball.com
Premiership clubs are set to run the rule over Spartak Moscow's 6ft 3in
Austrian centre-back Martin Stranzl tonight. Spartak face Tottenham in their
UEFA Cup tie at White Hart Lane and Stranzl is a target for several
Premiership clubs, plus Rangers. Spartak general director Valery Karpin
admits they are ready to talk to any interested teams but Rangers will face
competition next month from Everton, West Ham and Fulham for the former 1860
Munich and Stuttgart star, who has been capped 51 times for Austria.
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Gudmundsson wants to double money for West Ham sale
18.12.08 | tribalfootball.com
West Ham United owner Bjorgolfur Gudmundsson is seeking £150 million to sell
the club. The Daily Mail says Gudmundsson has already received several
provisional offers and has signed non-disclosure agreements with "five to 10
parties", allowing potential buyers to examine financial details supplied by
the club. This does not mean he is certain to sell, according to West Ham's
vice-chairman Asgeir Fridgeirsson, but it underlines the desire of the
struggling Icelandic tycoon to cash in one of his main assets. Gudmundsson
paid £85m for West Ham, two years ago, but his business empire has been
crumbling since the Icelandic bank he controlled, Landsbanki, collapsed in
October and was nationalised.
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Gud Move For Hammers Chief
The Sun
By PAT SHEEHAN
Published: Today
BJORGOLFUR GUDMUNDSSON is trying to more than DOUBLE his money by selling
West Ham in the middle of the credit crunch. The Hammers owner has lodged
papers in his native Iceland that reveal he wants a whopping £250million for
the club he has invested around £120m in. Gudmundsson bought West Ham from
ex-chairman Terry Brown for around £85m and has ploughed at least another
£35m into the club to bring in the likes of Lucas Neill, Matthew Upson and
Craig Bellamy.
Other Premier League clubs are waiting to see if they can pick up a January
sale bargain at Upton Park but senior players insist they are not concerned
by the latest turn of events. West Ham captain Neill, 30, revealed: "The
players aren't worried. No one is thinking about leaving or talking about
leaving. "The immediate first-team squad is all very happy and enjoying
their football. "I have had assurances from Gianfranco Zola that he wants me
to stay. He likes what he has here and wants to build on that. "He doesn't
want to lose the quality he has because it will affect his plans and what we
are trying to achieve." West Ham chiefs have not received a single offer to
buy the club. But it is believed up to five groups — with one at least from
the Middle East — are ready to move in.
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Hammers House Of Horrors
The Sun
Published: Today
BLOOD-CURDLING screams could be heard all over East London yesterday as West
Ham's Icelandic owners confirmed they want to sell the club. The claret and
blue hordes have good reason to be afraid — a takeover was largely
responsible for getting them into this awful mess in the first place. But
unlike most horror tales, the mayhem has not been caused by just one dark,
scary figure lurking in the shadows. In this instance, there are 10
perpetrators. Ten Count Draculas who have each, in one way or another,
driven a stake through West Ham's once-vibrant heart. Terry Brown, Eggert
Magnusson, Bjorgolfur Gudmundsson, Scott Duxbury, Alan Curbishley, Carlos
Tevez, Javier Mascherano, Freddie Ljungberg, Kia Joorabchian and XL — your
West Ham have taken one hell of a beating! It is difficult to pinpoint
exactly when and where things began turning scary at the self-proclaimed
Academy of Football. But Upton Park seems to have had a curse hanging over
it from the moment the Icelandic consortium and Joorabchian both started
trying to get their claws into the Hammers in the summer of 2006. The Ice
Men woneth, of course, but West Ham have endured a gruesome chain of events
since, with:
SCREAM! Boardroom blunders causing a financial nightmare.
SCREAM! The death of shirt sponsor XL, leading to more cash woe.
SCREAM! Frightening amounts of dough wasted on over-paid, injury-prone
stars.
SCREAM! Shocking performances on the pitch.
SCREAM! The spectre of Tevez, whose signing with Argie team-mate Mascherano
looks set to return to haunt the Hammers.
Former chairman Brown is accused of kick-starting the carnage by selling the
club in the first place. Many fans feel he should have vetted the buyers
more carefully, instead of plumping for the one who offered the most cash.
And the reported £33.4million he received from the Ice Men for his shares
made Brown — who was as popular with the West Ham faithful as a garlic
salesman in Transylvania — even more of a hate figure down Green Street. Not
that his successors have fared any better.
Magnusson became a cult hero when he blazed into Upton Park in a whirlwind
of extravagant promises and started splashing cash like it was going out of
fashion.
He was officially installed as chairman on November 21, 2006, and after four
games he sacked Alan Pardew as manager, replacing him with Curbishley. Under
Eggy, Curbs was given an open chequebook to chase the owners' unrealistic
dreams of world domination. The manager, unaccustomed to spending such large
amounts of dosh after 15 years watching the purse strings across the water
at Charlton, was like a kid in a sweet shop as he splashed out a whopping
£46m in his first two transfer windows.
West Ham fans had never had it so good — and nor had the ageing old crocks
Curbs broke the bank to sign. There was £5m on Luis Boa Morte, £6m on Kieron
Dyer and £6.1m on Julien Faubert. Best of the lot, though, was the £3m paid
to Arsenal for the once-great Ljungberg. A signing memorable only for the
fact that the Swede trousered a reported £6m pay-off 12 months later having
netted just twice in 25 starts. The fans would later blame Magnusson and the
owners would blame Curbishley, but only after both had long departed Upton
Park. Eggy's writing was on the wall when he was stripped of his executive
chairmanship in September 2007. Three months later it was announced he had
left the club and that his five per cent stake had been bought by majority
owner and new chairman Gudmundsson.
Gudy had apparently been horrified by Magnusson's spending, but questions
have to be asked why neither he nor the club's legal eagle turned chief
executive Duxbury were keeping a closer eye on the books. Gudmundsson is
selling up after apparently losing hundreds of millions in the collapse of
Icelandic bank Landsbanki, in which he has a 41 per cent stake. He is no
stranger to bad investments, though, having reportedly guaranteed £100m of
loans to West Ham's former shirt sponsors XL airlines, who went bust earlier
this year, costing the club an estimated £5m. Gudmundsson is obviously
desperate to recoup his losses. But whoever comes to his rescue and takes
over at Upton Park faces the prospect of having to pay Sheffield United
compensation over the Tevez affair. The Blades want £30m after the Hammers
broke FA rules over third-party ownership when they signed Tevez and
Mascherano in August 2006. That was a deal overseen by Duxbury and his then-
boss Brown. The Argie duo were offered to the Hammers by their 'owner'
Joorabchian, who was hoping the coup of providing two top-class players
would boost his bid to take over at Upton Park. Instead, the men from
Iceland beat him to it and the rest is history.
Hammers everywhere will be hoping the next takeover causes less of a fright
for new boss Gianfranco Zola's side.
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