The ownership situation at West Ham bubbles on, but the bottom line is that the club is likely to have a secure future with Gianfranco Zola as manager. Talks between Straumur, the failed Icelandic bank, and its creditors continue. The bank, which controls 80 per cent of the club’s debts, collapsed last month, and was placed in a moratorium protection by a Reykjavik court while talks continue with creditors. The banking group, which enjoys moratorium protection until the end of May, is in talks about how best to operate West Ham as a going concern from the end of the season.
The ownership situation at West Ham bubbles on, but the bottom line is that the club is likely to have a secure future with Gianfranco Zola as manager. Talks between Straumur, the failed Icelandic bank, and its creditors continue. The bank, which controls 80 per cent of the club’s debts, collapsed last month, and was placed in a moratorium protection by a Reykjavik court while talks continue with creditors. The banking group, which enjoys moratorium protection until the end of May, is in talks about how best to operate West Ham as a going concern from the end of the season. Bjorgolfur Gudmundsson, the Hammers chairman who borrowed heavily from Straumur, is expected to relinquish ownership to a consortium of the bank’s creditors. He is expected to step down, along with vice-chairman Asgier Fridegeirsson, and would be replaced by a chairman nominated by the club’s creditors. There are understood to be two candidates, a banker and a West Ham supporting businessman. Scott Duxbury will continue as chief executive
As part of the deal West Ham will be expected to be self-financing which means that there will be no further cash injections from its backers. Key creditors are thought to be aware of the need to maintain commercial stability at the club under Gianfranco Zola. He is aware of developments and has agreed in principle to a new four year contract that will replace the current one year rolling deal. Any further funds will have to come from the sale of players, but although there are expected to be one or two high profile departures in the summer, there will be no fire sale. West Ham also have to pay more than £20m in compensation to Sheffield United as part of the settlement for the Carlos Tevez affair but, because the money is to be paid over five years, they are confident that they can cope with it out of a turnover soon to hit £100m a year. There may be other legal actions from players against West Ham, but it remains to be seen whether these are successful and/or lead to significant settlements.