Sluffy Posted October 6, 2008 Share Posted October 6, 2008 (edited) Ok I'm only putting two and two together here but follow my logic - 1 - Bj?rg?lfur Gu?mundsson (born 1941-01-02 in Reykjav?k, Iceland) is the chairman and owner of West Ham United FC. Bj?rg?lfur is Iceland's second billionaire business man (his son being the first) and is currently ranked by Forbes Magazine (in 2008) as the 1014th-richest person in the world with a net worth of $1.1b. He is a majority owner and chairman of the Icelandic bank Landsbanki, the second largest company in Iceland. 2 - Today - 6th October - Iceland's government has drafted emergency legislation to try and salvage the country's banking system. In a televised address to the nation, Prime Minister Geir Haarde said the legislation would help the island avoid national bankruptcy. The moves come after trading in six of Iceland's biggest banks and financial firms was temporarily halted. Banks dominate Iceland's economy, leaving the island of just 300,000 people heavily exposed to the global credit squeeze. Under the legislation, Iceland's financial regulator will have wide-ranging powers to dictate a bank's operations and could even force it to merge with another company or declare bankruptcy. We were faced with the real possibility that the national economy would be sucked into the global banking swell and end in national bankruptcy," Mr Haarde said. "The legislation is necessary to avoid that fate." Before the legislation was announced, Iceland's financial supervisory authority said it had decided to temporarily suspend trading in the three biggest three banks - Kaupthing, Landsbanki and Glitnir - and three other financial groups, Straumur-Burdaras, Exista and Spron. The regulator said it had suspended trading to protect investors' interests while waiting for a government announcement on its rescue plans. Icelandic banks and companies have provided financial backing for a number of UK businesses and, as such, problems in the Icelandic banking system could have a knock-on effect in the UK. Under the legislation, the country's largest banks have agreed to sell off some of their foreign assets and bring them home. This money will be brought back into Iceland, in an effort to shore up the economy and prevent the currency, the krona, from sliding any further. http://news.bbc.co.uk/1/hi/business/7655227.stm 3 - Alan Curbishley has resigned as manager of West Ham because of a lack of control over transfer policy. Curbishley tendered his resignation on Wednesday and it was accepted by owner Bjorgolfur Gudmundsson. The final straw for the 50-year-old had been the enforced sales of Anton Ferdinand and George McCartney. Curbishley said decisions had been made "without involving me", amounting to "a breach of trust and confidence meaning I had no option but to leave." http://news.bbc.co.uk/sport1/hi/football/t...utd/7596106.stm 4 - The ?200 million personal loss on XL going bust - Icelandic chairman Bjorgolfur Gudmundsson has a long connection with XL, and the failure of the holiday group which has collapsed leaving tens of thousands stranded could end up costing the Gudmundsson family up to ?200m. A big hit, even for people who are very wealthy by any standards. Until 2006, much of the business which became the holiday group XL was owned by an Icelandic company controlled by Bjorgolfur Gudmundsson and his son Thor Bjorgolfsson. Family connections The son's business interests are even more extensive than the father's, and there are close connections between them. In 2006 the XL travel business was sold to a buyout group led by Philip Wyatt. But the purchase was largely funded by a loan from the Icelandic bank Landsbanki, which is controlled and part-owned by the Gudmundsson family. Another Gudmundsson controlled company - Eimskip - guaranteed 207m euros (?164m) of the loan. So, effectively, the Gudmundsson family sold their travel business, but provided much of the finance for the purchasers. Further support for XL came in the form of a loan of 45m euros (?35m) from Straumur, a bank controlled Thor Bjorgolfsson. Earlier this week a group led by the Gudmundssons said that they would take liability for the financial guarantee given to XL. On the face of it, this is a baffling transaction. With XL on the brink of collapse why would businessmen who were well aware of the position offer this kind of guarantee? The answer, according to sources familiar with the deal, is that they feared that the guarantee would push their company Eimskip to the brink. So they decided to take the loss privately. But the move illustrates how closely connected the Gudmundssons were to the fortunes of the XL group. The total loss from XL to Bjorgolfur Gudmunsson - the West Ham owner - and his son could reach 252m euros (?199m). http://news.bbc.co.uk/1/hi/business/7613351.stm Ok, only pure speculation on my part but who knows what the financial position of the Hammers and their owners is and also don't forget...... 5 - Today - 6th October - Sheffield United?s claim for damages against West Ham could climb to ?50m Sheffield United are to turn the financial screw on West Ham by calculating a new claim for damages that could climb up to, and even beyond, ?50 million In a further twist to the Carlos Tevez affair, the revised figure is certain to be considerably more than the ?30m previously filed to an FA tribunal. The arbitration panel?s verdict in the Yorkshire club?s favour has opened the way for their directors to reinforce their moral high ground in the argument. West Ham are owned by Icelandic millionaire Bjorgolfur Gudmundsson and, with the financial crisis sweeping his homeland, this news could not come at a worse time. When United submit their revamped claim to the hearing that will rule on the amount to be paid, it will reflect the fact that the Blades are serving a second season outside the top flight. United believe they would still have been in the Premiership had West Ham not broken rules on third-party ownership and then been controversially reprieved from a points deduction by the Premier League. http://www.telegraph.co.uk/sport/football/...m-Football.html Will their bubble soon be burst??? Edited October 6, 2008 by Sluffy Link to comment Share on other sites More sharing options...
Traf Posted October 6, 2008 Share Posted October 6, 2008 They're in big trouble, for sure. Bj?rg?lfur Gu?mundsson was a major shareholder in XL.com, so he's struggling. Link to comment Share on other sites More sharing options...
Sluffy Posted October 6, 2008 Author Share Posted October 6, 2008 They're in big trouble, for sure. Bj?rg?lfur Gu?mundsson was a major shareholder in XL.com, so he's struggling. Good point Traf - It cost the family ?200 million apparently (Ouch!) I will update my original post accordingly. Link to comment Share on other sites More sharing options...
Smiffs Posted October 6, 2008 Share Posted October 6, 2008 Bj?rg?lfur Gu?mundsson How long did it take you to find out what buttons to press to get that name right? Link to comment Share on other sites More sharing options...
Traf Posted October 6, 2008 Share Posted October 6, 2008 How long did it take you to find out what buttons to press to get that name right? I cut and pasted it ! Link to comment Share on other sites More sharing options...
Traf Posted October 7, 2008 Share Posted October 7, 2008 Another piece from the Telegraph about the state of things in Iceland (the country, not the chav food shop endorsed by Kerry "Fat Crackhead" Katona) http://www.telegraph.co.uk/finance/finance...p-in-smoke.html Link to comment Share on other sites More sharing options...
Smiley Posted October 7, 2008 Share Posted October 7, 2008 So to summarise: 1. Their big cheese owns a bank that is going t?ts up. 2. Their major sponsor XL has already gone t?ts up. 3. In February 2009 they are likely to be landed with a ?30m-?50m fine over the Tevez affair. 4. They are f?cked. Link to comment Share on other sites More sharing options...
Boby Brno Posted October 7, 2008 Share Posted October 7, 2008 And all that before Gartside makes our claim! Link to comment Share on other sites More sharing options...
Sluffy Posted October 7, 2008 Author Share Posted October 7, 2008 (edited) Latest - Gu?mundsson's bank Landsbanki as just been nationalised - "Based on new legislation, the Icelandic Financial Supervisory Authority (IFSA) proceeds to take control of Landsbanki to ensure continued commercial bank operations in Iceland," the authority said in a statement. http://www.reuters.com/article/businessNew...E4962ER20081007 Edit - this seems to have had a knock-on effect with their operations over here. Their Icesave accounts have been closed for now, with no money being allowed in or out - http://www.icesave.co.uk/ Wonder who the hammers bank with? Edited October 7, 2008 by Sluffy Link to comment Share on other sites More sharing options...
no balls Posted October 7, 2008 Share Posted October 7, 2008 My mum's got some of her money in icesave (Landsbanki) and no deposits or withdrawals are allowed to be made by immediate effect. "We are not currently processing any deposits or any withdrawal requests through our Icesave internet accounts. We apologise for any inconvenience this may cause our customers. We hope to provide you with more information shortly." It appears they have the same rights as a UK bank (i.e. upto ?50k is safe.) Thank f?ck! I was worrying about my inheritance then! Link to comment Share on other sites More sharing options...
Ani Posted October 7, 2008 Share Posted October 7, 2008 Bearing in mind the problems faced by west ham and spurs the FA will be meeting to draw a contingency plan to ensure the safety of all London clubs. (especially ones that have won the world cup). Link to comment Share on other sites More sharing options...
Sluffy Posted October 7, 2008 Author Share Posted October 7, 2008 My mum's got some of her money in icesave (Landsbanki) and no deposits or withdrawals are allowed to be made by immediate effect. "We are not currently processing any deposits or any withdrawal requests through our Icesave internet accounts. We apologise for any inconvenience this may cause our customers. We hope to provide you with more information shortly." It appears they have the same rights as a UK bank (i.e. upto ?50k is safe.) Thank f?ck! I was worrying about my inheritance then! Happy Birthday. I'm sure you are right but it would be nice if the Icelandic Government actually was specific about this - as at the moment they are only talking about their own residents savings - Icelandic Prime Minister Geir Haarde guaranteed domestic bank deposits and gave regulators the power to take over bank assets and obtain funds from lenders that may become ``inoperable.'' ``It is every country for itself,'' ``I would like to defuse all doubts that deposits by Icelanders and private pension savings in all Icelandic banks are not secure,'' Haarde said in a television address. ``No-one need be in any doubt about that.'' He didn't mention deposits held at Icelandic banks' foreign subsidiaries. According to Standard & Poor's, Haarde's comments implied that depositors and creditors at foreign units of Icelandic banks ``must rely on the financial resources of the overseas subsidiaries themselves.'' http://www.bloomberg.com/apps/news?pid=206...mp;refer=europe Link to comment Share on other sites More sharing options...
no balls Posted October 7, 2008 Share Posted October 7, 2008 Happy Birthday. I'm sure you are right but it would be nice if the Icelandic Government actually was specific about this - as at the moment they are only talking about their own residents savings - Thank you! If anyone on here has any money in there, I've had a quick look and this is the legal bumph on their site: Regulatory & Other Details Icesave is a registered trading name of Landsbanki Islands hf, incorporate in Iceland (id no. 540291-2259), whose registered address is Austurstraeti 11, 155 Reykjavik, Iceland. Registered in the UK under Company Number FC26112 at Beaufort House, 15 St Botolph Street, London EC3A 7QR. Landsbanki Islands hf is Authorised by the Fj?rm?laeftirliti? (FME) in Iceland and by the Financial Services Authority and is Regulated by the Financial Services Authority for the conduct of UK business. FRN: 207250. If we cannot pay any amount we owe you on your savings accounts, you will be able to claim compensation. The maximum compensation is limited to 100% of the first ?35,000 (rising to ?50,000 with effect from 7 October 2008) of your total deposits held with us (the same as every FSA regulated bank and building society in the UK). In the unlikely event of a claim. The compensation itself is provided by two schemes (sometimes referred to as a passport scheme) ? the end result being that the total amount protected is the same as if your savings were only protected by the UK Financial Services Compensation Scheme. The protection works as follows: The first level of protection is provided under the Icelandic Depositors? and Investors? Guarantee Fund (www.tryggingarsjodur.is). The maximum protection under this scheme is 100% of the first ?20,887 (or the sterling equivalent) of your total deposits held with us. The second level of protection is provided by the UK Financial Services Compensation Scheme (www.fscs.org.uk). This scheme tops-up your protection so that the protection under both schemes, is equal to 100% of the first ?35,000 (rising to ?50,000 with effect from 7 October 2008) of your total deposits held with us. Under EU law compensation for any losses incurred due to the failure of a bank should generally be paid within three months - regardless of whether it is through a passport scheme or the UK Financial Services Compensation Scheme. Further details are available on request. Link to comment Share on other sites More sharing options...
tyldesley_white Posted October 7, 2008 Share Posted October 7, 2008 Thank you! If anyone on here has any money in there, I've had a quick look and this is the legal bumph on their site: Regulatory & Other Details from the BBC http://news.bbc.co.uk/1/hi/business/7656387.stm Link to comment Share on other sites More sharing options...
Sweep Posted October 7, 2008 Share Posted October 7, 2008 from the BBC http://news.bbc.co.uk/1/hi/business/7656387.stm What an absolute ballache that would be trying to claim the money back..........good luck to anybody who has an account with this lot Link to comment Share on other sites More sharing options...
globaldiver Posted October 7, 2008 Share Posted October 7, 2008 Would be nice 9as long as they don't owe BW any money from anyhting) Link to comment Share on other sites More sharing options...
Whites man Posted October 7, 2008 Share Posted October 7, 2008 In all probabilty the skint Icelanders will sell the club to some other mug. Somebody's going to go bust soon but I don't see it being everyones' second favourite club. Unfortunately. Link to comment Share on other sites More sharing options...
Sluffy Posted October 7, 2008 Author Share Posted October 7, 2008 In all probabilty the skint Icelanders will sell the club to some other mug. Somebody's going to go bust soon but I don't see it being everyones' second favourite club. Unfortunately. It's really a rhetorical question but who would want to buy a football club now, under the current global financial situation? If you bought an organisation costing say ?150 million you have to have one of two things 1 - The cash, or 2 - The credit 1 - If you had the cash would you spend it (assuming you did not need the money elsewhere) on a football club - let alone West Ham? Surely you could buy something more profitable - cash is king at the moment. West Ham would need investment in players, whilst at the same time income streams such as shirt sponsorship and sell-out crowds (people are starting to worry about their job security) may not necessarily be forthcoming - and this is for non big four club. 2 - The banks are not giving each other credit at the moment - who then will fund ?150 million worth of credit on a football club? The club is saying its Icelandic owner is financially sound and as no need to sell - they are hardly going to say he's fecked and he will sell to anyone for cash to keep the wolves away from the door of his imploding financial empire are they? No, my guess is that if someone is going to buy the club they will wait until they can get the best deal for themselves - and that may even be buying after the club goes into Administration! Musing on things closer to home, Davies as underwritten Bolton's ?40+ million debt. I hope his switch making business is not feeling the economic pinch otherwise when the banks come calling for their latest repayments we might soon find ourselves in the brown stuff ourselves! Link to comment Share on other sites More sharing options...
Moderators Casino Posted October 7, 2008 Moderators Share Posted October 7, 2008 It's really a rhetorical question but who would want to buy a football club now, under the current global financial situation? If you bought an organisation costing say ?150 million you have to have one of two things 1 - The cash, or 2 - The credit 1 - If you had the cash would you spend it (assuming you did not need the money elsewhere) on a football club - let alone West Ham? Surely you could buy something more profitable - cash is king at the moment. West Ham would need investment in players, whilst at the same time income streams such as shirt sponsorship and sell-out crowds (people are starting to worry about their job security) may not necessarily be forthcoming - and this is for non big four club. 2 - The banks are not giving each other credit at the moment - who then will fund ?150 million worth of credit on a football club? The club is saying its Icelandic owner is financially sound and as no need to sell - they are hardly going to say he's fecked and he will sell to anyone for cash to keep the wolves away from the door of his imploding financial empire are they? No, my guess is that if someone is going to buy the club they will wait until they can get the best deal for themselves - and that may even be buying after the club goes into Administration! Musing on things closer to home, Davies as underwritten Bolton's ?40+ million debt. I hope his switch making business is not feeling the economic pinch otherwise when the banks come calling for their latest repayments we might soon find ourselves in the brown stuff ourselves! arabs next question Link to comment Share on other sites More sharing options...
Sluffy Posted October 7, 2008 Author Share Posted October 7, 2008 arabs next question Well I did ask a rhetorical question but never the less, why buy West Ham now? 1 - More 'glamorous' clubs are probably there for the taking - Liverpool, possibly United. 2 - The Premiership might be on the edge of a meltdown - FA chief fears '?3bn' club debts - http://news.bbc.co.uk/sport1/hi/football/7656862.stm 3 - Even the Arabs would have suffered in the financial markets recently - surely better to spend their cash buying up businesses across the world for a knock down price than indulge themselves on the EPL? (World in recession = reduced demand for oil). 4 - If they simply want to buy any Premiership club then they could buy the likes of Bolton, Hull, Stoke, etc for a lot less than the reported ?150 million for West Ham - and invest the difference in players. I'm not saying it won't happen - just that they can do a lot better elsewhere for their money than spend it on West Ham - don't you agree? Link to comment Share on other sites More sharing options...
Site Supporter Alf Hartigan Posted October 7, 2008 Site Supporter Share Posted October 7, 2008 Well I did ask a rhetorical question but never the less, why buy West Ham now? 1 - More 'glamorous' clubs are probably there for the taking - Liverpool, possibly United. 2 - The Premiership might be on the edge of a meltdown - FA chief fears '?3bn' club debts - http://news.bbc.co.uk/sport1/hi/football/7656862.stm 3 - Even the Arabs would have suffered in the financial markets recently - surely better to spend their cash buying up businesses across the world for a knock down price than indulge themselves on the EPL? (World in recession = reduced demand for oil). 4 - If they simply want to buy any Premiership club then they could buy the likes of Bolton, Hull, Stoke, etc for a lot less than the reported ?150 million for West Ham - and invest the difference in players. I'm not saying it won't happen - just that they can do a lot better elsewhere for their money than spend it on West Ham - don't you agree? i personally don't give a fcuk if the premiership is on the edge of a financial meltdown far better things to worry about anybody else feel like this? Link to comment Share on other sites More sharing options...
Moderators Casino Posted October 7, 2008 Moderators Share Posted October 7, 2008 west hams is in london bolton isnt Link to comment Share on other sites More sharing options...
Traf Posted October 7, 2008 Share Posted October 7, 2008 i personally don't give a fcuk if the premiership is on the edge of a financial meltdown far better things to worry about anybody else feel like this? I feel the same way. Football has lost all relevance to the man on the street and to everyday life. Link to comment Share on other sites More sharing options...
Sluffy Posted October 7, 2008 Author Share Posted October 7, 2008 i personally don't give a fcuk if the premiership is on the edge of a financial meltdown far better things to worry about anybody else feel like this? I'm not quite sure what you are saying Alf. If you mean the well being of your family and yourself is more important than the existence of the Premiership then I am sure everyone would agree with you. If you are saying you don't give a fcuk about the Premiership as long as Bolton is ok, then I don't think it is as simple as that. Most football clubs carry debt - we are beholding to Davis for ?40+ million. If the Premiership fails it would be because most clubs can no longer deal with its debt (including us). Look what happened to Gretna last season when its benefactor withdrew. There could potentially be a lot of big clubs going to the wall soon. I'm simply speculating on this thread that West Ham could be one of the first - it is feasible (depending on Davis financial position) that we could be another. I could live without football - but my life would be that much duller - and as a regular poster yourself Alf, I guess yours would be too. Link to comment Share on other sites More sharing options...
Sluffy Posted October 7, 2008 Author Share Posted October 7, 2008 west hams is in london bolton isnt Yes. West Ham is in London Bolton is near Manchester and Liverpool The only club the Arabs have bought is in Manchester and the only other club they are linked to is in Liverpool. If they wanted a London club Fulham is better situated. Chelsea might even be available these days - who knows? I guess Arsenal and Spurs may be available too. For pennies they could get Charlton. So why go for West Ham? Link to comment Share on other sites More sharing options...
Recommended Posts