Hammam exit explained
23 Oct 2006 - 09:19:04
Cardiff City have confirmed that Sam Hammam has stepped down as chairman of the club with Peter Ridsdale taking over to help bring in new funds required to build a new stadium and secure a place in the Premiership.
The former Wimbledon supremo has agreed to sell his shareholding in the Bluebirds, which will see their debt removed and help raise cash for their new stadium plans and to help boss Dave Jones bring in the players required to boost their promotion bid.
As reward for his six years service to Cardiff, Hammam has been offered the position of 'honorary' life president.
A statement on Cardiff's official website read: "It has been clear for some time that if Cardiff City Football Club were to fulfil their ambitions to build their new 30,000-seater stadium and invest in the squad to continue their push for promotion, there was a requirement to bring new funding into the football club.
"In order that the current debt levels can be reduced and then eradicated and for the club to have additional working capital, an agreement has now been reached for a debt for equity swap with institutional hedge funds, who have acknowledged the unique huge potential that exists with Cardiff City Football Club.
"Heads of terms have been agreed for the new injection of funds and the deal is expected to be concluded prior to Christmas.
"In light of the above, Sam Hammam has resigned as chairman and director with immediate effect and has been replaced as chairman by Peter Ridsdale."