A Czech Republic investment group led by billionaire Daniel Křetínský has purchased a 27% ownership stake in the Premier League’s West Ham United F.C. after the club rejected two bids from private equity firm PAI Capital in the last year.
Reports of Křetínský’s interest in purchasing a $206.8 million stake in the club surfaced last month. Specific financial terms of the transaction weren’t disclosed, but the investment is said to value the team between $827 million and $965 million.
Forbes gave the team a $508 million valuation in April.
The funds will “initially enable the reduction of its long-term debt” and be used for other areas of focus.
- Current chairmen David Sullivan and David Gold will see their shares reduced as part of the deal — they purchased an 86% majority stake in 2010 for $118.6 million.
- Sullivan’s stake will fall from 51.5% to 38.8%, and Gold’s from 35.1% to 25.1%.
- According to some reports, Křetínský will eventually buy out Sullivan and Gold, though The Guardian said sources have played down those suggestions.
Křetínský, who co-owns Sparta Prague, and his colleague Pavel Horský, will be appointed to the board as part of the transaction. Křetínský is reportedly worth $4 billion.
