A NIGHT of celebration for West Ham United supporters was followed by uncertainty yesterday as the club confirmed negotiations for an £80 million takeover bid that could end one of the longest family ownerships in football.
If Terence Brown, the West Ham chairman, and two descendants of the men who founded the club in 1895, Charles Warner and Martin Cearns, decide to sell their shares, Kia Joorabchian, the head of Media Sports Investments (MSI) and the man who brokered the deal that took Carlos Tévez and Javier Mascherano, the two Argentina players, to Upton Park on Thursday, will buy a controlling interest in the Barclays Premiership club.
Brown, Warner and Cearns own two thirds of the shares, and although the business is nominally a public company, if they agree to sell, remaining fan shareholders will not be able to prevent a takeover.
Joorabchian, it is believed, may step down within weeks from MSI to assume control of West Ham, clearing their debt of £22 million. The 35-year-old Iranian-born British national is thought to be backed by a consortium from Iran that believes the club is financially viable but undervalued, with the potential to obtain much higher revenue. The club own their stadium and have other valuable assets, including training grounds and a community centre.
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West Ham confirmed his interest and added that discussions were at an “exploratory” stage. “There can be no certainty that an offer for West Ham will be forthcoming,” the club said in a statement to the London Stock Exchange.
The identity of Joorabchian’s wealth is unclear, although he appears to have control over Corinthians, the Brazilian club. The London-registered MSI shows no turnover — but it is only one of four companies named as investment partners in Corinthians. None of the other three appears to be registered in the UK. Joorabchian has been linked to Russian oligarchs, including Roman Abramovich, the owner of Chelsea, but denies the connection. Joorabchian first approached the club about a takeover last year and returned to the table about a month ago. As well as fulfilling takeover rules, Joorabchian would have to prove to the Premier League that there were no conflicting interests and he would face other checks, such as bankruptcy.
West Ham denied that Joorabchian’s interest in the club is linked with the arrival at Upton Park of Tévez and Mascherano, who were signed from Corinthians on Thursday. “The board confirms that there is no contractual link between the signings and the bid discussions,” the statement said.
Both Argentina players are contracted to MSI, a company that Fifa is investigating to ascertain whether it is for the “good of the game”.
An £80 million takeover would make Brown, who controls 40 per cent, £32 million richer. Warner, great grandson of Arnold Hills, the club founder, owns another 21 per cent, while Cearns, a son of a former chairman, holds 9.1 per cent.
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West Ham are covered by the takeover rules, even though the club’s shares are not traded on any stock exchange. Joorabchian, or any other buyer, cannot agree to buy more than 30 per cent of the shares without making an identical offer to all shareholders. Fans, though, could refuse to sell, although minority investors’ rights are limited, and once a buyer obtains more than 90 per cent, the rest of the shares can be compulsorily purchased.
The confusion surrounding the arrival of Tévez and Mascherano at Upton Park deepened when it emerged that the Corinthians official website had listed the pair as signing for Manchester United in the hours before the transfer deadline. The Brazilian club put Tévez’s price at £7.5 million and Mascherano’s as £11.75 million, seemingly well outside West Ham’s budget.