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Ownership of West Ham United F.C.

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West Ham United F.C. is a football club based in London. It was founded in 1900 by Arnold Hills, owner of Thames Ironworks and Shipbuilding Company. The club's forerunner, Thames Ironworks F.C. ceased to exist in 1900 with West Ham United being formed to take its place.

Ownership

Family club

Since the founding of West Ham United in 1900 as a Limited company and then a Public limited company, until the sale to an Icelandic consortium in 2006, they were known as a "family owned" club. Martin Cearns, chairman from 1990 until 1992 and a board member until 2006, was the third member of the family to be chairman.[1] His family had been associated with West Ham since its 1900 foundation. J.W.Y (Jimmy) Cearns worked for Thames Ironworks and Shipbuilding Company and was a founding member, and director (1900–1904, 1907–1934) of the club until 1934. His son, W.J. Cearns was chairman from 1935 until 1950.[2] W.J. Cearns' son, L.C. (Len) Cearns, was a director from 1948, vice-chairman from 1950 and chairman from 1979 until 1990.[3][4]

Len Cearns elder brother W.F. (Will) Cearns was a director from the death of their father in 1950. Will and Len's younger brother Brian R. Cearns was a director from 1962. Another member of the board which sold the club in 2006, Charles Warner, is the great grandson of club founder, Arnold Hills.[1] The majority shareholder under the limited company with 1100 of the 4000 shares issued was Arnold Hills and on his death his descendents . Two unsuccessful attempts by the board were made to buy the shares in 1927 on Hills' death and in 1948 from his family. From 1924 until 1961, 1142 shares remained unsold giving the statutory five man board with only 403 shares between them the ability to consolidated their position dictating who would be sold shares and elected to the board as there was no interference from Hills or his descendents. In 1961 the board members each bought 200 of the unsold shares and 142 were sold to newly elected director R G Brandon at face value.[5] Jack Petchey was a director at from June 1978 until 1989.[6]

Terry Brown

Terry Brown joined the board in November 1990 and was chairman from May 1992.[7] Brown was criticised by some sections of the fans (including pressure group Whistle specifically formed for this purpose) due to a perception of financial and staff mismanagement.[8] In 2006 he made £33.4m after selling the club for £85m to an Icelandic consortium.[9]

Honorary Life President, investor and former owner and chairman, Terry Brown
West Ham United co-owners, David Sullivan and David Gold

Icelandic consortium

In 2006 Eggert Magnússon and Björgólfur Guðmundsson bought the club.[10] On 18 September 2007, Magnússon stepped down as executive chairman[11] but would still retain the role as club non-executive chairman overseeing a new management structure, and would keep his stake in the club.[12]

On 13 December 2007, Magnússon left West Ham and his 5% holding was bought by club majority owner Björgólfur Guðmundsson.[13]

On 8 June 2009 during the 2008–2012 Icelandic financial crisis, Icelandic CB Holding which is 70% owned by Straumur-Burdaras bank and 30% owned by Icelandic-based banks Byr and MP[14] took over Hansa Holding, which had West Ham United as their only asset and filed for bankruptcy protection. Straumur was one of Hansa Holding's largest creditors. Straumur appointed one of their directors, Andrew Bernhardt, as the new chairman of CB Holding, a company set up to manage the affairs of West Ham United.[15]

David Sullivan and David Gold

In January 2010, David Sullivan and David Gold acquired a 50% share in West Ham, from CB Holding, given them overall operational and commercial control.[16] At the end of May 2010 David Gold and David Sullivan purchased a further 10% stake in the club at a cost of £8million (£4m to CB Holding, £4m towards club debts). Taking their controlling stake to 60%, they announced that in the near future they may open up shares for fans to purchase.[17] On 9 August 2010, Gold and Sullivan increased their shares up to 30.6% each with "minority investors", (which included former owner Terry Brown, purchasing a further 3.8% of the club at a cost of around £3-4million) leaving Straumur Bank owning 35% of the club.[18]

On 2 July 2013, it was announced David Sullivan had acquired a further 25% of shares from CB Holdings (owned by the Icelandic bank), after restructuring the debt of the club, leaving Straumur Bank with just 10%.[19] In order to clear club debts before a move to the Olympic Stadium in 2016, in December 2014 David Sullivan announced the availability for sale of 20% of the club.[20] The clearing of club debts, given in July 2013 as £70m, is pre-condition to moving to the Olympic Stadium.[21]

Chairmen

[22]

Years Chairman Notes
1900–03 Lazzeluer Johnson Clerk, director 1900–1932. Subscriber to the Articles of Incorporation 5 July 1900.[23]
First chairman, taking over from Arnold Hills chairman of West Ham's predecessor, Thames Ironworks
1903–04 Edwin Smith Timber converter, director 1900–1903. Subscriber to the Articles of Incorporation 5 July 1900.[23]
1904–09 Joseph Grisdale Coppersmith, director 1904–1909.[23]
1909–35 William F White Barge builder, director 1905–1935.[23]
1935–50 William J Cearns Contractor, director 1924–1950.[23]
Self-made millionaire from the construction industry.[24][25] His eldest son, also William, served as a director from 1950 on the death of his father and vice-chairman from June 1979 until 1991[26]
1950–79 Reg Pratt Timber merchant, director 1941–1979. Succeeded father F R Pratt, timber merchant, director 1924–1941.[23]
Oversaw the set-up of the youth teams and training methods which led to The Academy of Football and the establishment of training facilities at Chadwell Heath.[27][28][29]
In May 1959 negotiated the purchase of the freehold of the Boleyn Ground from the Roman Catholic Archdiocese of Westminster for £30,000.[30]
1979–90 Len Cearns Contractor, director 1948–1993[31]
[32] Son of William J Cearns he was vice-chairman from 1950 and his contracting company responsible for building the East stand in 1969, and relinquished his chairmanship to his son Martin in February 1990.[33]
1990–92 Martin Cearns A bank manager with Barclays Bank when he "inherited" the role from his father.[34]
Advocate of the Hammers Bond scheme[35][36]

He became vice-chairman on Terry Brown becoming chairman in May 1992

1992–2006 Terry Brown Became a director in November 1990 and chairman in May 1992.
2006–07 Eggert Magnússon
2007–09 Björgólfur Guðmundsson [37]
2009–10 Andrew Bernhardt Non-executive chairman – CB Holding

West Ham were taken over by asset management company CB Holding following Guðmundsson's bankruptcy
caused by the 2008–2012 Icelandic financial crisis.[38][39][40]

2010– David Sullivan and David Gold – joint With the club valued at £105m, Sullivan and Gold buy 50%. They inherited £120m of debt from the previous owners.[41][42]

References

  1. ^ a b "Second Bid For West Ham – 4/09/2006". www.footballeconomy.co.uk. Retrieved 29 January 2013.
  2. ^ "Dog Track Chairman dies". Essex Newsman. 21 February 1950. Retrieved 19 January 2015 – via British Newspaper Archive. {{cite news}}: Unknown parameter |subscription= ignored (|url-access= suggested) (help)
  3. ^ Lyall, John (1989). Just Like My Dreams. Harmondsworth: Penguin Books. pp. 44–45. ISBN 0-14-013193-0.
  4. ^ Belton, Brian (2008). Brown Out. London: Pennant Books. p. 27. ISBN 978-1-906015-11-4.
  5. ^ West Ham United by Charles Korr pages 20,21,22 ISBN 0-7156-2126-2
  6. ^ Hammers Handbook 1989–90 page 27 whos who at Upton Park
  7. ^ Hammers Handbook 1992–93 page60
  8. ^ "Tabor's warning for West Ham". The Independent. 31 January 1997. Retrieved 16 January 2015.
  9. ^ Conn, David (22 November 2006). "Brown cashes in on overseas gold rush". www.guardian.co.uk. London. Retrieved 19 January 2013.
  10. ^ "West Ham accept £85m takeover bid". BBC Sport. 21 November 2006. Retrieved 19 January 2013.
  11. ^ "Magnússon steps down as West Ham chairman". Reuters. 18 September 2007. Retrieved 9 November 2007.
  12. ^ Naughton, Philippe; Sage, Adam (18 September 2007). "Eggert Magnússon relinquishes West Ham role". The Times. UK. Retrieved 9 November 2007.
  13. ^ "Eggert is victim of Hammers' reshuffle as he loses chairman's role at Upton Park". Daily Mail. UK. 13 December 2007. Retrieved 13 December 2007.
  14. ^ "What West Ham takeover means". Retrieved 12 September 2014.
  15. ^ "West Ham's future in fresh doubt". The Guardian. 7 August 2009. Retrieved 16 January 2015.
  16. ^ "West Ham United statement | News | Latest News | News | West Ham United". Whufc.com. Retrieved 31 January 2013.
  17. ^ "Chairmen increase shareholding | News | Latest News | News | West Ham United". Whufc.com. Retrieved 31 January 2013.
  18. ^ "Ownership | Ownership | The Club | West Ham United". Whufc.com. Retrieved 14 January 2011.
  19. ^ "Ownership | Ownership | The Club | West Ham United". legalweek.com. Retrieved 2 July 2013.
  20. ^ "West Ham: Co-owner David Sullivan says 20% stake for sale". BBC Sport. 28 December 2014. Retrieved 16 January 2015.
  21. ^ "West Ham United must pay £70m bank debt before Olympic Stadium move". The Guardian. 24 July 2013. Retrieved 16 January 2015.
  22. ^ Northcutt, John (2007). The Claret & Blue Book of West Ham United. Hove: Pitch Publishing (Brighton) Ltd. p. 40. ISBN 1905411022.
  23. ^ a b c d e f West Ham by Charles Korr p 243–4 ISBN 0-7156-2126-2
  24. ^ Porter, Tom (19 January 2012). "WANSTEAD: Oldest Hammers fan dies aged 92". www.guardian-series.co.uk. Retrieved 21 January 2013.
  25. ^ "Tribute paid to Harold Cearns". www.whufc.com. Retrieved 19 January 2013.
  26. ^ West Ham United official handbook 1992–93 page 61
  27. ^ Northcutt, John (1993). West Ham United – A complete Record. Derby: Breedon Books. p. 46. ISBN 1-873626-44-4.
  28. ^ "Malcolm Allison 1927–2010". www.whufc.com. Retrieved 19 January 2013.
  29. ^ "Year by Year". www.whufc.com. Retrieved 19 January 2013.
  30. ^ Days of Iron by Brian Belton p 161 ISBN 1-85983-153-2
  31. ^ West Ham Official Handbook 1996–97 and Korrs book
  32. ^ Atwal, Kay (27 June 2011). "WW1 memoir gives window on history". www.newhamrecorder.co.uk. Retrieved 19 January 2013.
  33. ^ West Ham United official handbook 1992–93 page 60
  34. ^ Belton, Brian (2008). Brown Out. London: Pennant Books. p. 37. ISBN 978-1-906015-11-4.
  35. ^ Pierson, Mark (27 January 1997). "Football: West Ham fear FA censure over pitch invasion". London: Independent. Retrieved 29 June 2011.
  36. ^ "League Honour Martin Cearns". www.whufc.com. Retrieved 19 January 2013.
  37. ^ "Magnusson steps down at West Ham". BBC Sport. 13 December 2007. Retrieved 19 January 2013.
  38. ^ "West Ham United statement". www.whufc.com. Retrieved 26 January 2013.
  39. ^ "West Ham takeover deal completed". Retrieved 12 September 2014.
  40. ^ Mason, Rowena (1 August 2009). "Icelandic bank chief in £500m of hot water". Telegraph. London.
  41. ^ Lawton, Matt (20 September 2012). "Sullivan: We're paying Carroll's wages out of our own pockets ... We want the best team because we are West Ham fans". www.dailymail.co.uk. London. Retrieved 4 February 2013.
  42. ^ "David Sullivan and David Gold seal West Ham takeover". BBC Sport. 19 January 2010. Retrieved 19 January 2013.
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