The drawn-out saga of West Ham United’s ownership came to a foreseeable end today with David Sullivan and David Gold purchasing 50 percent of the club, with the option to buy the other half at the end of the season.
Will they, though, provide the stability that the supporters crave?
After the buy-out from Eggert Magnusson, the Icelandic biscuit tycoon, promises of five-year plans of Champions League football all fell apart with the Icelandic economy being in a worse financial position than Portsmouth. Mega-spending on overpaid stars, along with an unfortunate run of injuries hampered the progress that Alan Curbishley could make.
The Sullivan takeover is in somewhat similar circumstances; however West Ham’s current position is much brighter than what it was like in January 2006.
The team is playing well, and some would view the results as unlucky.
Most fans and pundits seem to suggest a striker is what is needed most, but four clean sheets in 21 league matches is not something the new owners should be looking positively on.
Sullivan and Gold have the experience of running a football club, having done so successfully for sixteen years at Birmingham, and this knowledge can only be beneficial when compared to other potential owners.
However, their press conference highlighted the pitfalls that the club is still in a financial mess.
110 million pounds of debt, including 40 million owed to other clubs, and many future finances (including shirt sponsorship and season ticket sales) have already been used to pay debt and have been borrowed against. This paints a bleak immediate future for the Hammers, but so long as they survive for the next couple of seasons in the top flight, smooth financial footing should be provided.
There are plans to move away from Upton Park to a new Olympic Stadium built for the 2012 Olympics, along with promises that Zola will remain in charge, and a seven-year plan for Champions League football will all be things that the fans will judge the owners on.
But all fans can hope for in the short term is survival.
Roger Rational
Guest
It's absurd. Sullivan and Gold don't have any money! They are buying the club simply because they are West Ham fans, not because they actually have anything to offer. In fairness, they won't run the club into the ground like the previous clowns, but nor will they inject much cash. West Ham will just bob along barely keeping its head above the waves, a la Birmingham - if they're lucky.
Art Sapphire
Guest
Oh, MVDave - The two most imporant words for today = Carlos Tevez :)
Art Sapphire
Guest
Not Quite MV Dave - they paid 44 miilion pounds for 50% of the club and in the process they inherited West Ham 100+ Million pound debt. "Sources say that £22m of that goes to pay down some of the club's debt" Sullivan stated - "We haven't got £140m [in cash]. And even that, all that would do is pay the debt," he explained. "It wouldn't buy you a team. So you put in another £100m, or £250m, or £300m? Well, we just haven't got it. I'm not liquid to that extent." As long as the club is run well the debt is manageable. Unlike the 700 million that Man U owe. That's a pretty big pill to swallow if you wants someone to take over from the Glazers.
Darwin hammer
Roar Rookie
Given the finacial position then yes it is a good move for the club ... now hopefully we'll hold onto those vital players we needed to stay and hopefully get in a couple of new faces .... I only hope S & G show some faith in Zola and Clark - they're definitely trying to build something
MV Dave
Guest
If they need to borrow money to buy the club then why dont they have a Bond Issue to raise the cash :)
Art Sapphire
Guest
Considering the clubs dire financial position it looks as if the new owners will be trying to get a loan deal to resolve the current lack of firepower. Going forward - the Guardian reports that "Succour can also be drawn from the fact that they have looked into buying "about 20" clubs, ensuring they have very good intelligence on the state of those clubs' finances. This will be very useful when discussing potential deals for their players" More info on the clubs financial position and the new owners can be found here. http://www.guardian.co.uk/football/2010/jan/19/west-ham-takeover-david-sullivan-gold As a fellow West Ham supporter, I wish Sullivan and Gold the best of luck. Come On You Irons!!!