The events at West Ham today are a portent of things to come for English football. Up until now Premier Leagueclubs have largely ignored the global recession, continuing instead upon their merry, profligate way.

The change of ownership at Upton Park could usher in a new mood of austerity as teams, for once, begin to learn to live within their means.

Even the top four, who have ignored the need to tighten their belts, may now have to keep a close eye on what they spend as Liverpool's loss of £42million proved last week.

The departure of Icelandic businessman and old-fashioned philanthropist, Bjorgolfur Gudmundsson, ended the West Ham dream of being able to compete financially with the fat cats of English football.

When Gudmundsson's then lieutenant, Eggert Magnusson, succeeded Terry Brown as West Ham's chairman in the winter of 2007, he promised a regime of largesse - a new stadium, top players and ultimately, European football.

Then manager Alan Curbishley set about the challenge with gusto, signing a crop of experienced players in the January transfer window, all of them earning top money.

Gudmundsson, at that time the 799th richest billionaire in the world and majority owner of Icelandic bank Landsbanki, soon became increasingly dismayed by the extent of West Ham's expenditure.

Eventually, things came to a head and Gudmundsson, himself, became more active at the club while Magnusson departed.

In a warning of what was to follow, the 68-year-old insisted they become self-sufficient and key to this new strategy was the appointment of Gianfranco Zola as manager last September.

Zola's primary aim was to reduce the expenditure on astronomical fees and players' wages and sign youngsters could be sold on for healthy profits in the future.

Not long after Zola took over, Landsbanki were one of the first casualties of the recession and Gudmundsson lost upwards of £300m. He wanted to keep hold of West Ham but was forced to sell to the major creditors of his holding company Hansa.

The new owners, CB Holding, mostly owned by Straumur Investment Bank, will continue this policy of a self-financing football club until, at some point down the line when the financial climate improves, they sell to new investors.

The new non-executive chairman, Straumur senior director Andrew Bernhardt, has no football experience and said today: "We will sanction investment in new players but all within the parameters of sensible budgeting generated by West Ham."

Zola will have to balance the books, selling one player so that he can buy another. West Ham fans have already seen the new budgeting regime when back in January, the club doubled their money on the sale of Craig Bellamy, to Manchester City.

Captain Lucas Neill, offered a new contract last week but at a sizeable drop in salary, also looks likely to move on this summer.

This model is likely to become the norm in the coming years as financial realities hit home even in the cash-rich Premier League. The television money earned from Sky can only support so much spending.

Whether Zola will be able to achieve another ninth-placed finish given the added constraints only time will tell. Newcastle had the same problem this season and look where they are now.