An American consortium has seen a second £400m bid to buy West Ham United rejected, following an initial £350m offer earlier in August. The group, involved in US sports, remains interested and plans a third bid within the next month after a cooling-off period.
Current owners David Gold and David Sullivan, who have faced fan protests since the move to the London Stadium in 2016, are holding out for a higher price. The bidders have drafted a seven-year business plan to improve the club's finances, which showed a pre-tax loss of £28.8m last year, exacerbated by the Covid-19 pandemic.
A key complication is the 20% penalty clause payable to the taxpayer if the club is sold for over £300m before March 2023, part of the London Stadium deal. The consortium is also exploring buying the stadium outright.
The bidders believe poor on-field results could increase pressure on the board. West Ham lost their opening Premier League match 2-0 to Newcastle and face a tough run of fixtures against Arsenal, Wolves, Leicester, Tottenham, Manchester City, and Liverpool. The club has made no signings since narrowly avoiding relegation last season.
Club and stadium sources have questioned the group's seriousness and noted a lack of proof of funding, but the consortium insists its interest is genuine. Sullivan, who holds a 51.5% majority stake, has indicated a willingness to sell only a minority share, but the bidders seek a controlling interest.
