After weeks of speculation, former Birmingham City owner David Sullivan has taken commercial and operational control of West Ham United Football Club. He has acquired 50 per cent of the London club, currently languishing towards the foot of the English Premier League. A statement on the club website said the deal had valued the club at £105 million.

“I enjoyed running Birmingham City for 16 and a half years,” Sullivan said. “But everyone there knew my true love was always West Ham United. It will be an immense privilege to lead this great football club and more importantly its supporters.”
Sullivan will be joined by Gold, who will be the club’s new chairman. Longtime Birmingham executive Karren Brady has been appointed vice-chairman.

He promised that transfer funds would be available to manager Gianfranco Zola, adding: “Our first priority has to be securing the Premier League status of West Ham.”

The deal to buy 50 per cent of the club, with a promise to make transfer funds available, was one of two options open to Sullivan and Gold widely reported in December. The other was to purchase full control. The Guardian newspaper reported late last year that Gold and Sullivan would likely pay around UK£21 million for 50 per cent, plus the same again to ‘service the short-term debt and strengthen a threadbare playing squad when the transfer window reopens’.

Straumur, the biggest shareholder in CB Holdings, was believed to be initially holding out for as much as UK£80 million before deciding that the risk of being further financially exposed should the club be relegated in May was too great a risk.
Straumur owns 70 per cent of CB Holding, with the rest in the hands of Icelandic banks Byr/MP Banki and Landsbanki. The club was transferred to Straumur in June 2009 when Bjorgolfur Gudmundsson, the previous owner, filed for bankruptcy.

Sullivan praised former executive chairman Andrew Bernhardt and previous owner CB Holding “who assumed control of the club in difficult circumstances through no fault of their own”.

He said: “Our long-term aim will be to put the club on a stronger financial footing. I believe with our new board we have the expertise and experience to do just that and bring the good times back to this great football club. West Ham United need stability after all the recent upheavals. We appointed four managers and parted company with two at Birmingham in 16 years. We believe in our managers and give them the time and support they need.

“The club is now back in the hands of East Enders, people who understand the community and its passion for the Hammers. I believe that depth of feeling will also bring us through what has been a difficult period.”

The Sullivan/Gold bid was enough to see off Tony Fernandes, the Malaysian airline entrepreneur and Lotus Formula One team chief, who had reportedly made several offers for the club he also supports. Fernandes admitted that his final bid had failed via his Twitter site. In a post before the Sullivan announcement he wrote:  “Deal lost on West Ham. Hopefully new owners protect what’s good. We gave awesome deal and new ideas to rejuvenate a club and bring excitement.”

Other contenders for ownership included the Intermarket financial firm and Italian entrepreneur Massimo Cellino.