West Ham Ownership Dispute Nears Courtroom as Staveley Deal Faces Obstruction

A legal battle looms over the ownership of West Ham United as a consortium led by Amanda Staveley, instrumental in the Saudi acquisition of Newcastle United, faces an obstruction to its £150 million deal to purchase a 25.1% stake. The shares are currently held by the family of the late David Gold, and the agreement was viewed as a preliminary step toward gaining overall control of the Premier League club.

Czech billionaire Daniel Kretinsky, a current co-owner, has reportedly moved to prevent Staveley's consortium from acquiring the Gold family's stake. According to The Times, Kretinsky is reducing his own holding from 27% to just under 25%. This maneuver would allow him to purchase the Gold stake, as existing shareholders typically have first refusal, without exceeding the 50% threshold. Crossing that threshold would obligate him to buy the 38.8% stake owned by David Sullivan at a price considered inflated.

However, sources indicate that Kretinsky's attempt to increase his influence at the London Stadium club, which was relegated to the Championship last season, could trigger a legal challenge. There is a contention that Kretinsky's sale of shares to fellow Czech Jakub Havrlant might contravene the rules stipulated in West Ham's articles of association, potentially rendering the transaction unlawful.

Staveley's group, which includes investors from the United States, is reportedly aiming to secure a controlling interest in West Ham, a move that would encompass David Sullivan's stake. Their offer values the club at £600 million.

Should Kretinsky's plan to acquire the Gold stake be successful, he might require the support of American billionaire Albert Tripp Smith, who possesses an 8% share, to effectively control the voting dynamics within the club's boardroom. Representatives for Kretinsky have been contacted for comment.