It’s been a rough time in the financial world of Bjorgolfur Gudmundsson (even though a year ago Forbes had him pretty high up), so much so that he’s seen ownership transferred to an Asset Management Company to run the club, a move which is believed to have protected the long term future of West Ham.
Via TimesOnline
Gudmundsson owed around £100million to Straumur-Burdaras Investment Bank, his main creditor, who have formed an asset management company called CB Holding that will run the club. Straumur own the majority stake in CB Holding, with the balance made by Gudmundsson’s other creditors.
Gudmundsson was given until tomorrow to sell the club after a court hearing in Iceland in March. But buyers have been unwilling to pay a price that was acceptable to Straumur. Gudmundsson, who has lost around £500m in the global financial crisis, has stepped down and Andrew Bernhardt, a Straumur director, has been appointed non-executive chairman.
“I am delighted that an agreement has been reached and look forward to working with CEO Scott Duxbury and his team in the coming years,” Bernhardt said. “We have one of the best young management partnerships in Gianfranco Zola and Steve Clarke and the team has evolved with a great mix of experience and young players coming through from the Academy.
He said that the transfer will have no impact on the club’s day-to-day running. “I can assure fans we will sanction investment in new players, but all within the parameters of sensible budgeting based on revenues generated by West Ham,” he said. “It will be my job to help facilitate this continued progress on the pitch, while ensuring the club’s success is built on a strong financial footing. We have an initial two-year plan which includes improving the infrastructure at the club and we will be getting to work on this as soon as the new board is appointed. CB Holding has no intention of changing the executive management or direction of the club.”
Duxbury, the club’s chief executive, said that the transfer will bring stability to the club, which has debts of around £45m.
“Change is always unsettling,” he said. “This will allow us all to concentrate on next season and beyond, with Gianfranco Zola, technical director Gianluca Nani and I working to build on what we have achieved. We are all committed to a long-term vision. We are playing great football, have our academy at the heart of the club and are looking to the past to move forward in the right way. I can assure all fans that I will never lose sight of this. I am determined to bring success to West Ham.”
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