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David Sullivan in takeover talks with West Ham
Ken Dyer14.10.09
David Sullivan has held preliminary talks with West Ham about investing in the cash-strapped Premier League club.
Sullivan and former Birmingham co-owner David Gold are both keen to return to football after selling their stake in Birmingham to Hong Kong businessman Carson Yeung and have targeted West Ham, the club Sullivan supported as a boy, as their first option.
Sullivan, though, has painted a bleak picture of West Ham's current plight and may be put off by the asking price of £100million to take over the club who are believed to have debt well in excess of £50m.
"The debts that appear to be at West Ham seem huge," said Sullivan yesterday. "I'm not sure I could face what is going on there but West Ham do need help and quickly. I hope someone gets involved in the next week or next month or two, otherwise they could be in the Championship or bust, or both."
West Ham, owned currently by CB Holdings who, in turn, are owned largely by Icelandic investment bank Straumur-Burdaras, have made no public reply to Sullivan's comments but it is understood that although initial talks in the last couple of weeks involve a possible injection of cash, a complete takeover is still a possibility. Their financial position, following the departure of former chairman Bjorgolfur Gudmundsson, is precarious but they have no plans for a fire sale of players to raise cash in January.
Sullivan and Gold, who is being kept informed as talks progress, are among several investors interested in West Ham and Straumur, who must answer to creditors by the end of the year, continue to run the club in accordance with a self-financing policy.
They remain keen to sell but may prefer to wait until the financial climate improves.
That would make things difficult for manager Gianfranco Zola, who has already been forced to sell defender James Collins to Aston Villa before he could buy Alessandro Diamanti from Italian club Livorno.
Sullivan and Gold, who was also brought up in the east end, are enthusiastic about buying into West Ham but are nervous about the level of the debt and the team's League position.
There has been talk of a rift between Zola and technical director Gianluca Nani but Zola has denied there is any problem. The former Chelsea star, though, would welcome fresh investment in the club.
“As one door shuts another one opens,” said Sullivan. “West Ham is a club close to my heart and I would love to be involved with them.”
Reader views (8)
If Sullivan and Gold have taken Birmingham City as far as they can, they won't be rich enough to rescue the Hammers and take them into the Premier League top six.
- Trevor |Beaumont, Melbourne, Australia
Dont take the first offer these debts are nothing compared with the so called top teams and west ham have proved many times in the past what they can do....get a good pr company and be realistic..the present position is not for long and "the chelsea connection" will get us out of it.
- Alan Campbell, Manilva
when will they be as big as chelsea
- Colm Ruddy, monaghan ireland
Only when some obscenely rich benefactor comes in and buys success, same as happened at Chelsea
- Rob, London
Franco - get out while you can. You are too nice a guy to get involved with these people. You can come and stay at my house until Chelsea invite you to take over.
- Barry Chapman, Welwyn England
Sulivan is talking us down to get us on the cheap. He has no real money to invest (unless he partners with Tabor) so I cannot see us getting any further than mediocrity.
I know we all dream of someone coming in and fulfilling the club's potential. Sullivan and Gold, I'm afraid, are not the it.
- Roynaldo, Elm Park
all this doom and gloom is it neccesary? west ham would be a great investment for the right people.i dont understand cb holdings thinking the idea that an asset may go up in the future is very risky who knows whats going to happen in the next three days never mind the next three years? what happens if west ham get relegated? what happens to the value then?where would cb find the money to get promotion? what would happen if the best players left? no bite the bullet sometimes in business you have to run with your wins and cut your losses.west ham from cbs point of view is a loss and if you dont intend or cant invest you need to move on.
the good news is cash flow is king 35.000 supporters every home game a great brand world renound and london based are all pluses .the debt is serious but most companies carry debt.find ways to reduce it there is a difference between good debt and bad debt ie spending money and paying good money for the right players so we gain success is good debt. come on you investors think about what west ham is and can become in the future.
dont be convinced by the emotion look at thr reality a great asset and a great product.but its going to take more than a few pennies the club needs to grow slowly not harbour a fantasy that in the future things will turn out right.one last point west ham is a football club
please only apply if you care. the patient is sick but not in intensive care.it needs a get back to work plan and excited foreward looking investors
- Geoff Risley, birkenhead england
when will they be as big as chelsea
- Colm Ruddy, monaghan ireland
I hope this happens the daily speculation surrounding West
Ham ( mostly lies )is killing the club.
Possible relegation,huge debts.key players leaving in January,playing behind closed doors,Ashtons AWOL.
And even with no match for two weeks,the club receives bad news on a daily basis.
As a loyal fan for 50 years I cannot understand why we receive such bad press,long before the Tevez affair.
West Ham has a huge fan base,producing top young talent every year,and based in London.
The present board should remember that if they are relegated they will be in the same situation as Newcastle
with no forthcoming buyers.
- Ron Sexton, Hornchurch UK
