In a parallel universe.
The scene is a tacky Essex mansion at the start of a new season. Karen Brady reclines on a four-poster waterbed reading the latest Jackie Collins novel as David Sullivan emerges from the bathroom wearing only a Cossack shower cap.
All seems well with the world. The pain, anguish and humiliation of the previous season had never happened. There had been no relegation, no impending fire sale, no executive resignations, and no TV exposés. Graham Potter had tippy-tappyed his team to surprise European qualification, Niclas Fullkrug was up for the golden boot – and Bobby Ewing was still alive. It had all been a bad dream, just like in Dallas.
Back to life, back to reality!
The sudden resignation of David Sullivan from his executive positions at West Ham last Saturday was met with spontaneous, universal and unbridled joy across the West Hammersphere. Prayers had finally been answered; the despised Chairman was no more. As one astute commentator put it: “they’ll be dancing in the streets of the Queen Elizabeth Olympic Park tonight.”
The Panorama documentary was probably not as revealing as many had hoped. Not helped by its short length, early evening slot, parts played by actors, and that we were already familiar with much of the sleaze involved. Reading the accounts of the accusers in The Times were far more harrowing. The damage for Sullivan is more that it may prompt others to come forward with further allegations from his sordid past.
At least there was enough in the broadcast to close the door on any idea Sullivan may have had about a return to the boardroom. We are well rid of him.
But like everything at West Ham, as one door opens another slams rudely in your face. Sullivan may have stepped away from executive involvement and the day to day running of the club but, for now, remains the largest single shareholder. Not surprisingly, speculation is rife as to what might happen next. Will Sullivan choose to sell? Will he be forced out by the football regulator? Will Kretinski want to assume greater control? Is someone else waiting in the wings in the hope of picking up what has become a distressed asset?
It will be a pivotal summer for West Ham’s future as they scramble to sort out finances, cash flows, compliance with squad cost ratios (from vastly reduced revenues) – and to assemble a squad capable of returning to the Premier League at first time of asking. Not the best time for the club’s ownership to be in limbo.
The previously proposed sale of Gold Family holdings giving Sullivan and Kretinski equal stakes at 40% was never finalised in the light of relegation. Had it happened, the changes to individuals with significant control would have required notification to Companies House – and would be available to see.
So, as things stand, we are left with the original fragmented ownership structure of Sullivan (38.8%), Kretinski (27%), Gold Family (25.1%), Tripp Smith (8%) and Others (1.1%). Sullivan, like anyone else with a 25% plus stake, is able to veto any resolutions which impact the club’s constitution, share capital, mergers and acquisitions etc. At worst, he can continue to mess things up behind the scenes. At best, he needs to support whatever way forward is proposed.
Further, Sullivan’s appointees (currently his two sons) sit on the board and are able to contribute to decisions on operational matters on his behalf.
In theory, the Independent Football Regulator could order Sullivan to sell his holding, but this is likely to be used as a last resort. As odious an individual as he is, does he really stand out from the crowd when it comes to fit and proper ownership in modern football?
Far better that the ownership is resolved internally. Indeed, a clean sweep purging all Golds and Sullivans from the club would be the ideal scenario. It is difficult to believe that either of Sullivan’s sons would want to spend too much time in the media spotlight given a likely ongoing investigation, and with a mother who is best known as director of ‘Horny Housewives on the Job.’ And the Gold family are only in there by default.
Kretinski has been making all the right noises so far, but it is not known what appetite he has for greater investment. It is understood the put-and-call option negotiated in 2021 is still on the table, but the originally agreed price may no longer be attractive to him.
A third party – Amanda Staveley, Daniel Levy, predatory US venture capital, a Tony Cottee consortium – buying up all the Gold & Sullivan shares would give them majority control although Kretinski would need to approve any such a move.
While all this is going on, a question mark remains over who is at the wheel to oversee the summer clear out and rebuild. Someone needs to drag West Ham’s operational structure, finances, recruitment and coaching into the 21st century. And a cool head is needed to turn to the so-called ‘Fire Sale’ into an effective rebuilding fund – refusing to blink when the big clubs come knocking. And to recruit not only for the Championship but with an eye to the future beyond?
It’s going to be a cold, lonely summer. COYI!
Under The Hammers 