Hammers unaffected by bank collapse

2:40pm Tuesday 7th October 2008

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WEST Ham will not suffer any repercussions from Landsbanki going into receivership, despite club owner Bjorgolfur Gudmundsson being a major shareholder in the Icelandic bank.

The 67-year-old was the chairman of Landsbanki until he was sacked on Tuesday, after it had been taken over by the Icelandic government to prevent it from becoming insolvent.

But the Hammers will not be affected by the developments, according to the club, as Gudmundsson's investment in his homeland represents only a small portion of his personal fortune.

“This is not affecting West Ham," a senior boardroom member told BBC Sport. "One of Mr Gudmundsson's investments has gone bad, but he is still standing and has a lot of other investments.

"West Ham is protected by Mr Gudmundsson. He has considerable personal wealth in a number of sectors, such as construction and shipping, and most of these assets and investments are overseas."

The events in Iceland are the latest in a line of incidents that have put the West Ham chairman under pressure.

The club's sponsor, XL, collapsed last month, resulting in the club losing an extra £5million in revenue.

Furthermore, it was recently revealed that Gudmundsson was the guarantor of a £163million bank loan for the travel company.

Add that with the fact that the Irons are facing a massive £30million pay-out to Sheffield United following the Blades' successful appeal over the Carlos Tevez affair, and it has been more than a turbulent few months for the chairman.