Post by QPR Report on Nov 19, 2008 8:12:07 GMT
Telegraph/Jeremy Wilson - West Ham's future in doubt after holding company Hansa goes into administration
West Ham's future was plunged into fresh uncertainty on Tuesday after it emerged that Hansa, the club's holding company, had begun the process of administration.
The West Ham owner, Bjorgolfur Gudmundsson, has already been seriously hit by the economic crisis in Iceland and the latest development further increases the pressure on him to raise funds by selling the club.
Vice-chairman Asgeir Fridgeirsson confirmed that Hansa had "started the process of administration" but said there would be no day-to-day impact on West Ham.
"The issue has developed further," Fridgeirsson told The Daily Telegraph. "We believe there are plenty of assets in the company to take care of all of the debt. It is likely that the company [Hansa] will be functioning.
"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 is somewhat complicated but, although Hansa are the holding company, there is 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, meaning that the possibility of a sporting sanction against the team, such as the deduction of points, could not be considered in respect of any financial issues relating to the holding company.
Fridgeirsson described West Ham as "fire-walled" and pointed out that Gudmundsson had invested heavily in the club since taking control two years ago.
"It is not affecting the operation of West Ham, there is no debt within West Ham from Hansa or vice-versa," he said. "He put £30 million into the club last year, it is not a loan as some owners of clubs. It was paid in as equity. There is a clean sheet there. He did not put any debts on to the club to pay off any debts related to the acquisition of the club. The entity is not affected by this.
"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."
Fridgeirsson also said that manager Gianfranco Zola would not come under pressure to raise funds by selling players during the January transfer window. "The club is well funded for the remainder of the year," he said. "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."
Gudmundsson lost an estimated £230 million following the nationalisation of Landsbanki and one of his companies, Samson Holdings, have recently filed for administration.
West Ham have already attracted the interest of several major foreign investors and would cost about £150 million, although any potential buyer would surely want reassurances about Sheffield United's compensation claim of more than £30 million over the Carlos Tevez affair.
However, the Tevez situation may not get resolved until March next year. The High Court is also deciding whether West Ham can appeal to the Court of Arbitration for Sport (CAS).
West Ham's future was plunged into fresh uncertainty on Tuesday after it emerged that Hansa, the club's holding company, had begun the process of administration.
The West Ham owner, Bjorgolfur Gudmundsson, has already been seriously hit by the economic crisis in Iceland and the latest development further increases the pressure on him to raise funds by selling the club.
Vice-chairman Asgeir Fridgeirsson confirmed that Hansa had "started the process of administration" but said there would be no day-to-day impact on West Ham.
"The issue has developed further," Fridgeirsson told The Daily Telegraph. "We believe there are plenty of assets in the company to take care of all of the debt. It is likely that the company [Hansa] will be functioning.
"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 is somewhat complicated but, although Hansa are the holding company, there is 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, meaning that the possibility of a sporting sanction against the team, such as the deduction of points, could not be considered in respect of any financial issues relating to the holding company.
Fridgeirsson described West Ham as "fire-walled" and pointed out that Gudmundsson had invested heavily in the club since taking control two years ago.
"It is not affecting the operation of West Ham, there is no debt within West Ham from Hansa or vice-versa," he said. "He put £30 million into the club last year, it is not a loan as some owners of clubs. It was paid in as equity. There is a clean sheet there. He did not put any debts on to the club to pay off any debts related to the acquisition of the club. The entity is not affected by this.
"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."
Fridgeirsson also said that manager Gianfranco Zola would not come under pressure to raise funds by selling players during the January transfer window. "The club is well funded for the remainder of the year," he said. "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."
Gudmundsson lost an estimated £230 million following the nationalisation of Landsbanki and one of his companies, Samson Holdings, have recently filed for administration.
West Ham have already attracted the interest of several major foreign investors and would cost about £150 million, although any potential buyer would surely want reassurances about Sheffield United's compensation claim of more than £30 million over the Carlos Tevez affair.
However, the Tevez situation may not get resolved until March next year. The High Court is also deciding whether West Ham can appeal to the Court of Arbitration for Sport (CAS).
