The owner of West Ham United, Bjorgolfur Gudmundsson, has just two months to sell the club before his holding company, Hansa, faces the possibility of being declared insolvent, court papers in Iceland have revealed. Gudmundsson has put West Ham on the market in order to pay debts exceeding £50m that resulted from the collapse of the Icelandic bank Landsbanki, in which he held a 41 per cent stake. As many as nine potential buyers have shown a potential interest in the club.
The owner of West Ham United, Bjorgolfur Gudmundsson, has just two months to sell the club before his holding company, Hansa, faces the possibility of being declared insolvent, court papers in Iceland have revealed. Gudmundsson has put West Ham on the market in order to pay debts exceeding £50m that resulted from the collapse of the Icelandic bank Landsbanki, in which he held a 41 per cent stake. As many as nine potential buyers have shown a potential interest in the club. However, Gudmundsson, who bought the club for £85m in 2006, is struggling to finalise a deal initially expected to raise £250m, a figure that is proving unrealistic in the current financial climate. Court officials will decided on March 6th whether Gudmundsson is to be declared insolvent. The club would then probably have to be placed in administration and would incur a nine points deduction which could jeopardise its Premiership survival. Hansa has compared the sale of West Ham with that of Manchester City for £230m, arguing that the East London club is worth more because of its London stadium, the fact that it owns its own stadium and training ground and its proximity to the Olympic village. Facing something of a fire sale, a valuation of £125m looks realistic.