Eurosport - Wed, 08 Oct 11:38:00 2008
West Ham manager Gianfranco Zola must sell players before he buys new ones after the Icelandic bank chaired by owner Bjorgolfur Gudmundsson went into receivership.
The Icelandic government vow to take control of Landsbanki, the country's second-largest bank by value, as a global economic crisis saw the country's financial system threaten to collapse.
Bank chairman Gudmundsson is Iceland's second-richest man behind his son, Thor, and the family are major shareholders in Landsbanki.
Bjorgolfur Gudmundsson led an £85 million buy-out of the East London club in November 2006. He invested another £30.5m in December 2007 after buying a further five per cent stake.
"He is not going to take money out of the club if that is your fear," vice-chairman Asgeir Fridgeirsson said. "[But] this event has limited his options for further investment this year.
"We have a very big squad and [Gianfranco Zola] feels it is not necessary to be of that size, nearly 35. The money for further transfers would need to be generated from further sales.
"There is not an intention of him to invest further in the club at the moment but the club is standing strong, generating revenues.
"There is a great opportunity for the club to develop further - by selling players, by buying new and developing new players."
West Ham lost their shirt sponsor last month after the collapse of tour operator XL Leisure.
The latest setback comes as the club are appealing against a ruling by the Court of Arbitration for Sport that they should pay compensation to Sheffield United, which could run into tens of millions of pounds, as a result of the Carlos Tevez affair.
Championship club United argue that Tevez, now with Manchester United, was ineligible to play for West Ham at the end of the 2006/07 season when his goals helped them put together a storming finish to the season to escape relegation and send the Sheffield side down.
West Ham, now in sixth place in the Premier League, made a £22m pre-tax loss in the 2006/07 financial year.
Comment 4 - 23 of 23
east london scum will get everything they deserve
If west ham had been upfront and transparrently honest in their dealings involving the carlos tevez affair then they could not have been found guilty of anything and would not be paying any club anything or be in fear of a points deduction decision. In the same light that Sheffield united brought relegation on themselves by not playing well enough so west ham utd have brought a guilty verdict upon themselve by deliberately being obtuse and contrary over the precise details of carlos tevez contract and ownership. both clubs can look no further than themselves and their own conduct / performance if they are looking for someone to blame. Having said this the fact it has taken one club taking another to court to sort this matter out says as much of the shambolic organisations that supposedly run our beautiful game as it does about the two clubs involved.
WHY DOES EVERYONE BASHING WEST HAM ? SHEFF UTD WHEN DOWN BECAUSE THEM LOST TO MANY GAMES AT THE END OF THE SEASON, WEST HAM GOT A RECORD FINE.THAT SHOULD BE THE END OF IT BUT SHEFF UTD CARRYED ON CRYING ABOUT TO EVERYONE.
Generally speakng the wider world realise Blades fans arent bitter because of Tevez, more the fact that they went out over unfair circumstances that everyone else in the league accepted and played by, West Ham didnt get points deducted based on the FA bottling it which kept them up, so they will have to battle against the tide of no money for a while. One thing for sure is it aint looking good despite the results they have had. If they get away with giving Sheffield £30m i think they have been lucky its £56m a year for a seat in the Premiership so they will have to share some of that out rather than buy players, it might be less not having a sponsor though
If West Ham had been deducted points in a season where it was relevant it could have been argued that compensation wouldnt have been necessary although they missed that boat starting the next season in the same league.
I suspect receivership is the only way WHU are going to avoid paying out to Sheffield United - I am convinced that Sheffield United will refuse to participate (as is their right) in a hearing at the Court of Arbitration for Sport (this is who WHU are appealing to NOT as suggested in the article, who made the decision that WHU should pay SU compensation). This will be as payback for the way West ham refused to enter into the FA's process of appeal until it was too late to reverse the decision and have a point deduction outcome. If SU don't agree to go to the Arbitration court, then there is little chance of the case being touched by the Court, and the independent committee's decision to award SU compo will be final and the only remaining issue would be how much. If it is the mooted 30m, I see no chance of WHU meeting that money without some very creative accounting. So WHU would be unable to meet the debt, be placed in administration, docked at least 10 if not 17 points, and that may or may not get them relegated. The only benefit from WHU point of view is that SU would not get the compensation money.....
My ex is a west ham suporter so this has made my day!!
Final league position is decided in one game or one bad decision, BUT a team has to play good ALL season to even be in the running to win the league, you HAVE make EVERY result count. The same as a team that plays poorly all season will end up at the bottom of the league. Granted some of you don't agree with the sheff utd. decision, but what about the rest of the games they played, they were already at the bottom with the rest of the poor performing teams. Some stay up, some go down, that's just the way it is, like it or not.... I'm sure West Hams time will come.
im pretty sure this isnt the only club that will go bust after this nice creditcrunch. and only good too.
ha ha ha ha going down going down going down
After taking West Hams 30 million the Blades should develop the stadium nicely, get a a few decent players and then buy West Ham with the change.....If there is anything left of course!
i am a liverpool supporter.i am not bias to any team but honestly in my opinion i think that west ham should be deducted thier point and should be relegate instead of sheff utd..but it is a FA deicision and i think we must respect that. it is unfair to put all the blame to west ham and said this is karma. I love fotball n I dont want to see any football club stumble not because of footballing reason.
D W g8 point West Ham didn't win the World cup for England because there wasn't 11 West Ham players in the starting line up,just as they WASN'T 11 Carlos Tevez's playing for West Ham.Dry your eyes @#$%field Utd you got yourselfs relagated not West Ham
Its because of the world cup connection that the FA didn't deduct points at the time.
It STINKS this spineless body are one of the worst things in the game.
1: West Ham did not win the world cup for England. Last time I checked the starting XI that day was not made up of all West Ham players.
2: It dosen't take a genious to work out that unless West Ham get taken over the long term future of the club isn't great.
Sheffield Utd were relegated by the FA not West Ham. Do think they are the ones Sheff should sue. West Ham payed there dues to the FA (i think). Fulham Supporter.
Julie H, I love West Ham but can we please stop harping ojn about something that was over 40 years ago??
Ric@#$%ly one team relegated Sheff Utd and that was them! 10 point cushion they lost it. Without that West Ham adn Tevez would have been totally irrelevant. Sad you blame someone else for your failures! Tevez scored 7 goals - how many did Sheff Utd score in the same time? One more question if Tevez had kept Sheff Utd up would you be moaning?
yeah and its coming your way .....@#$%
ha ha!! Richard is that your real name or do use the shortened version (****)
Please login to post a comment
Not already a Yahoo! user ? Sign up to get a free Yahoo! Account