There could be no pot of gold at the end of the rainbow for poor blunts

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West Ham's financial security is not at risk, according to one of the club's directors - despite the collapse of Iceland's second largest bank, of which the Hammers' chairman was a major shareholder.</p>

West Ham's chairman, Bjorgolfur Gudmundsson, was yesterday removed from the chairmanship of Landsbanki as Iceland's government took control in an attempt to prevent the bank falling victim to the international banking crisis.</p>

However, the east London club's vice- chairman, Asgeir Fridgeirsson, yesterday claimed that the chairman would not be selling the club or plundering it for cash reserves. &quot;He is not going to take money out of the club if that is your fear,&quot; Fridgeirsson said. &quot;He is not absolutely sure how this will directly affect him but one thing he is sure of is that this will have no implications on the other investments of him and his family.</p>

&quot;It is, of course, a blow for him and his financial strength but he himself has a number of other investments that are doing quite well at the moment so there is no reason to fear that he will not honour his commitment to West Ham football club.&quot;</p>

Of far greater concern to Hammers fans and the club's manager, Gianfranco Zola, will be the vice-chairman's comments regarding any future injection of cash into the east London club.</p>

&quot;This event has limited his options for further investment this year,&quot; Fridgeirsson told Sky Sports News. &quot;We have a very big squad and our manager feels it is not necessary to be of that size, nearly 35. The money for further transfers would need to be generated from sales. There is not an intention of him to invest further in the club at the moment but the club is standing strong, generating revenues. There is a great opportunity for the club to develop further - by selling players, by buying new and developing new players.&quot;</p>

Such a sell-to-buy policy would seem to run contrary to promises made to Zola, who was told on his appointment last month that he would have funds in January. However it is unsurprising given the litany of financial woes that have befallen the club in the past month.</p>

Firstly their shirt sponsor, the package holiday company XL, went bust months after signing a three-year deal worth &pound;7.5m. Then an independent commission into the Carlos Tevez transfer ruled that West Ham may have to pay Sheffield United up to &pound;30m in compensation for their relegation from the Premier League at the end of the 2006-07 season, though West Ham intend to appeal that decision.</p>

Gudmundsson was the principal financial backer of the West Ham takeover in November 2006. He is thought to own 95% of WH Holdings, the company that purchased the club.</p>

Gudmundsson, Iceland's second richest man behind his son Thor, took more control of the running of the club at the start of last season, replacing Eggert Magnusson as chairman. He oversaw some drastic cost-cutting this summer, paying &pound;6m to terminate Freddie Ljungberg's contract and offloading Anton Ferdinand and George McCartney to Sunderland in an attempt to lower the club's wage bill - all of which contributed to Alan Curbishley's resignation in September two days after the transfer window closed.</p>

Gudmundsson and his son purchased 45% of Landsbanki for $140m in late 2002 through their investment vehicle Samson Holdings, of which the West Ham chairman owns just under 50%. Gudmundsson was also chairman of the bank, Iceland's second largest by value, until it was taken over yesterday as the country's financial system threatened to collapse and its currency plunged in value.</p></div>