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West Ham Parent co in Administration


Clapham Saint
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Not seen this mentioned before, however from this link:

http://news.bbc.co.uk/1/hi/business/8007763.stm

 

The BBC discuss Bjorgolfur Gudmundsson (West Ham's owner) being in financial difficulty.

 

He bought the club via his personal holding company i.e. He owns a Company which owns the shares in West Ham. Seem familiar?

 

I will admit that I haven't checked the exact ownership structure of West Ham, however:

 

"Icelandic bank Straumur provided much of the money in loans for Mr Gudmundsson's £85m purchase of West Ham United in November 2006.

Since then Mr Gudmundsson's holding company Hansa - in effect West Ham's United's holding company - has hit financial difficulties and gone into administration."

 

 

Can somebody on here point out some differences between Premier League Rules and Football League rules or is this a case of one rule for one and another Rule for another?

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They haven't broken the rules and neither have we. Yes it's a loophole, but if they don't like it they'll have to change the rules from next season.

 

Agreed, however why the fuss over us and not with them?

 

Or have I been blissfully ignorant of the independent investigation being made into their finances?

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Agreed, however why the fuss over us and not with them?

 

Or have I been blissfully ignorant of the independent investigation being made into their finances?

 

This was discussed at great length on things like Sky News some time back and basically

 

 

It's West Ham innit

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If they aren't deducted points and we are then that will be one of the worst decisions ever. I still don't think we should as although it is a loophole, it is still their rules and they shouldn't change them under fears of complaints from other clubs

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Look at Rule 60, page 94.

 

http://www.premierleague.com/staticFiles/7a/20/0,,12306~139386,00.pdf

 

Sporting sanction is only for a "CLub" in insolvency and it is a 9 point deduction. If you go up to Rule 50, it states that a club can be suspended if it "or its parent undertaking" goes into insolvency. Suspention means no more matches.

 

Wonder if the PL have therefore decided not to suspend West Ham. A bit further down it says if the suspension is postponed that the club cannot sign players and may have other restrictions placed on it. Not heard of anything like that happening to West Ham so I wonder if it is as clear cut as it appears?

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If we get deducted ten points, then I would imagine they would too.

 

Unless, of course, they manage to get Trevor Brooking on the committee deciding their fate. But surely something like that could never happen could it? ;-)

Edited by Sheaf Saint
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If we get deducted ten points, then I would imagine they would too.

 

Nope, WHU are in trouble because of the Icelandic banks, not because the football club has been mismanaged.

 

Saints should get -10, WHU shouldnt get anything if they can prove the club isnt running at a loss.

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Nope, WHU are in trouble because of the Icelandic banks, not because the football club has been mismanaged.

 

Saints should get -10, WHU shouldnt get anything if they can prove the club isnt running at a loss.

 

Er, we're both in trouble because primary sources of funding have been withdrawn. Amounts to the same thing in my book.

 

No Icelandic banking crisis, no need for Barclays not to extend their overdraft facility.

 

What about Manchester United, what was there annual loss? Or Chelsea's? When you take away the debt...

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Nope, WHU are in trouble because of the Icelandic banks, not because the football club has been mismanaged.

 

Saints should get -10, WHU shouldnt get anything if they can prove the club isnt running at a loss.

 

What a load of bull.

 

Icelandic banking is only an issue if WHU break their banking covenants or need to borrow more money to continue trading. Not unlike...

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WHU was bought on leveraged money. Where did that debt end up? Liverpool got the lot slapped on them and pay 30mil a year in interest

 

WHU have an issue at the top of their structure

 

Let us not forget the issue at club level as well - a little matter of Sheffield United and compensation claims

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Not seen this mentioned before, however from this link:

http://news.bbc.co.uk/1/hi/business/8007763.stm

 

The BBC discuss Bjorgolfur Gudmundsson (West Ham's owner) being in financial difficulty.

 

He bought the club via his personal holding company i.e. He owns a Company which owns the shares in West Ham. Seem familiar?

 

I will admit that I haven't checked the exact ownership structure of West Ham, however:

 

"Icelandic bank Straumur provided much of the money in loans for Mr Gudmundsson's £85m purchase of West Ham United in November 2006.

Since then Mr Gudmundsson's holding company Hansa - in effect West Ham's United's holding company - has hit financial difficulties and gone into administration."

 

 

Can somebody on here point out some differences between Premier League Rules and Football League rules or is this a case of one rule for one and another Rule for another?

 

Was here last week !!

http://www.saintsweb.co.uk/forum/showthread.php?t=12283

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Well a) premier league and football league have different rules, and b) the big boys have to watch their own backs. Even man united's parent company is in trouble. The football club is doing well financially but the parent company (because it borrowed to buy the club) has huge debts that would cancel that out if they were a single entity. What if they went into administration? Can you see the premier league daring to dock Man U any points?

 

The supposed difference will be how much else the holding company does, or owns, apart from the football club. The football powers-that-be will hide behind that supposed distinction somehow. They won't dare dock West Ham points in case they are next to suffer.... as long as west ham pay their football debts.

 

K.

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