Financial crisis impacts upon West Ham

When we switch on the news in the morning, few of us are surprised, in the current financial climate, to learn of a new bank in turmoil. However, when football clubs admit that they are being placed under threat by the current banking problems, some of us may be slightly more shocked. Last week, West Ham United admitted that they will need to sell players before they can even consider buying new ones once the January transfer window opens.

The reason for this unusual prospect is that the owner of the club, Bjorgolfur Gudmundsson, holds shares in Landsbanki, which has recently gone into receivership.

The personal financial uncertainty that this has no doubt caused Gudmundsson has destabilised the financial status of the whole club. The vice-chairman, Ausgeir Fridgeirsson, attempted to explain the situation to the media: “it is very unlikely he will be willing to put in more money to buy players this January”.

This latest news will not be music to the ears of new West Ham boss and former Chelsea legend, Gianfranco Zola, who stated after joining the club that he fully expected to be backed financially in the January transfer window.

Indeed, he spoke enthusiastically of his certainty that the board would back him and revealed that the club’s chief executive, Scott Duxbury, had explained to him that bringing in new players in January would “not be a problem”.

In an attempt to keep the new manager happy (something which is imperative since Zola has had such an immediate impact upon the club), the West Ham board has been quick to pretend that this latest financial news is actually positive.

The vice-chairman stated that the large size of the club’s squad would easily allow the manager to chop and change during the transfer window. Furthermore, the chief executive stated that Zola was already of the belief that the “first-team squad is too large and needs to be reduced so he can effectively coach the team”.

The board have also been keen to play down rumours that Gudmundsson may need to sell the club following the collapse of Landsbanki. Rumours had been circulating since it became clear that prospective buyers had actively shown an interest in purchasing the club but Fridgeirsson insists that these offers have been thoroughly rejected: “agents have been contacting us and we have told them we are not interested”.

This latest news concerning the finances of the club will not put a smile on the faces of West Ham fans, especially when viewed in the light of other controversial matters surrounding the club at the moment.

West Ham have called for help from the Court of Arbitration for Sport in an attempt to overturn the recent tribunal decision ordering them to pay Sheffield United compensation. Sheffield United were relegated at the end of the 2006/2007 season, whilst West Ham stayed in the Premier League, largely as a result of the goals scored by Carlos Tevez.

It was recently decided that the club broke Premier League rules whilst signing the striker, thus making them partially responsible for the downfall of Sheffield United.

However, following complaints from West Ham, the Court of Arbitration for Sport is now set to hold a hearing to decide whether to hear the club’s full appeal. West Ham must hope that this appeal is ultimately successful, especially in the light of their new financial uncertainty.

Written by Charlotte Cook