Source: Telegraph
West Ham to be taken over by bank consortium
A deal was due to be announced last month but was delayed after Straumur, which provided much of the funds for Gudmundsson when he bought West Ham three years ago for £85m, was itself declared 'effectively insolvent' and was nationalised by the Icelandic government. [LNB]Although West Ham have been up for sale for some time, as Gudmundsson tried to claw back some of the money he has lost due to the global financial meltdown, which has hit Iceland in particular and decimated his wealth, there have been no offers. He has been clinging to ownership, although not running the club, but will now have to go. [LNB] Related ArticlesAshton backed to be a hit againFootball Quiz: Friday FiveZola: Upson threat will inspire usXL Leisure fall leaves West Ham United owner facing major lossLatest of leagues foreign bodiesAlarm bells ring as Iceland?s economy shakesA plan has been proposed by which he steps down, along with vice-chairman Asgeir Fridgeirsson, and is replaced by a chairman nominated by the club's creditors. [LNB]There are understood to be two candidates - one a banker, the other a West Ham supporting businessman. The new chairman will work with Scott Duxbury who will continue as chief executive. [LNB]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. [LNB]Manager Gianfranco Zola, who is aware of developments, will be given a budget from the money the club generates. Indeed Zola has also agreed, in principle, a new four-year contract that will replace his current one-year rolling deal. A new offer is also being made to his assistant Steve Clarke. [LNB]Any further funds will have to come from the sale of players but although there are likely to be one or two high-profile departures during the summer, West Ham are adamant that there will be no fire-sale and that their young stars will stay. [LNB]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, again, are confident that because the money is to be paid over five years they can cope with covering it out of a turnover set to soon hit £100m a year. [LNB]The deal also means, according to sources, that West Ham are unlikely to be sold for some time to come.[LNB]
