Hammers cash crisis worsens

Chairman may be forced to sell, as holding company hits administration

Last updated: 19th November 2008   Subscribe to RSS Feed

Hammers cash crisis worsens

Gudmundsson: Could be forced to sell

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West Ham United's future has been cast further in doubt as the club's holding company Hansa has begun the process of administration.

Hammers owner Bjorgolfur Gudmundsson has already been hit hard by the credit crunch, with the Icelander reportedly losing £230million of his fortune and this latest disaster could force him to sell the club.

Gudmundsson has suffered a further blow with another of his companies, Samson Holdings, also filing for administration.

Vice-chairman Asgeir Fridgeirsson confirmed that Hansa has 'started the process of administration' but added that it would have no day-to-day impact on West Ham.

He told the Daily Telegraph: "The issue has developed further, we believe there are plenty of assets in the company to take care of all the debts. It is likely that the company (Hansa) will be functioning.

Reassurances

"One of the main assets is West Ham, he is still reviewing his options regarding his assets. This development is limiting his options."

West Ham's ownership situation is fairly complicated and although Hansa are the club's holding company, West Ham United Holdings Ltd and West Ham United plc all have a stake in the Hammers.

West Ham United plc are recognised as the member organisation by the Premier League, meaning that the possibility of a sporting sanction against the team would not be considered due to the financial issues of the holding company.

Fridgeirsson has re-assured Hammers fans and reminded everyone that Gudmundsson has invested heavily in the club since he took over.

He said: "It is not affecting the operation of West Ham, there is no debt within West Ham from Hansa or vice-versa.

"He put £30million into the club last year, it is not a loan like some owners of clubs. It was paid in as equity.

"There is no money going from the club to the owner. It is fire-walled. The operation will go on - it is unaffected by this development."

The vice-chairman also re-iterated that manager Gianfranco Zola would not be forced to sell players to balance the books in the January transfer window.

"The club is well funded for the remainder of the year. I am convinced that the club will go on no matter what. We are not going to sell players in order to settle debts of Hansa."

The club have already attracted interest from prospective buyers, with the Hammers valued at £150million.