By Kris Gonzo | Senior West Ham Columnist (Follow on X)
One of the benefits of finding out Amanda Staveley still has intentions to buy West Ham is that it should eventually flush out exactly who has a genuine desire to own the club.
Because if Staveley keeps coming, Daniel Křetínský may eventually have to show his hand.
The worst-case scenario for most Hammers fans would surely be David Sullivan increasing his stake further. And whilst I might have ruled that scenario out a week ago, him increasing his shareholding to around 40% does leave me slightly concerned about his longer-term intentions.
Claret & Hugh has been specifically told that Sullivan will have no operational role and will not return to the West Ham board, but I’d still rather see his shareholding going down than up.
Staveley Could Force Křetínský’s Hand
Křetínský, it seems, is happy enough to sit just under the 50% mark and content to run the football club from afar, being the biggest shareholder without taking full control.
Indeed, the recent redistribution of Vanessa Gold’s shares was specifically designed to leave Křetínský with approximately 46%, Sullivan around 40% and Tripp Smith on 11%, while blocking Staveley’s route into West Ham.
However, were Staveley to successfully negotiate a deal to buy Sullivan’s shareholding, the pre-emption rights attached to any proposed sale could once again bring the existing shareholders into play.
At that point, Křetínský could be faced with a pretty fundamental decision over how far he really wants to go with West Ham.
Does he increase his investment and finally become majority owner? Or does he remain below 50% and potentially allow somebody else to build a significant stake alongside him?
Staveley will attempt to bypass Kretinsky and go for David Sullivan’s West Ham shares
Who Actually Wants To Own West Ham?
The same question would apply to Staveley, of course.
We’ve already reported that discussions over Sullivan’s shares have taken place. If the former Newcastle co-owner were eventually to get her hands on a significant chunk of his holding, then one would imagine Tripp Smith’s 11% could fall into her crosshairs next.
Judging by the way Křetínský and the existing shareholders sought to block Staveley’s attempts to purchase Vanessa Gold’s shares, one can only assume that he is not particularly open to sharing power with PCP Capital Partners.
And that’s where this gets interesting.
If Staveley really does intend to keep coming back for West Ham, Křetínský may eventually be forced to make a decision he has so far managed to avoid.
Take full control of the football club, accept Staveley building considerable influence alongside him, or potentially sell his stake at a profit to whoever is backing her behind the scenes.
For all the twists and turns we’ve had already, perhaps that’s the one useful thing to come from Staveley refusing to disappear.
We might finally discover who actually wants to own West Ham.
Kretinsky appears to be about as dynamic as a tea towel. Sure he’s fantastic investor with an impressive portfolio but he doesn’t feel like he’s going to drive the club into a brave new era.
I think all us West Ham fans are so used to our board being a bit of a circus and shouting from the rooftops what they are up to….that I find it a bit of a pleasant relief that The current board keep things close to their chest until its time to announce things properly. Hopefully its something we can all get used to. I think we should reserve judgement on how he goes about things and how dynamic he is going to be until he has been our largest shareholder for at least 6 months. He has already shown more willingness to listen and do the right thing than Sullivan did in his whole time on the board. So I say lets give him the time needed and see how he does.
COYI
So lets reflect on what we actually know as I’m sure this is based on your desire for Staveley to be involved. Here is the cold hard reality. You, along with everyone else (apart from those actually involved) have no proof of the exact sales and purchases made, or who sold what to whom. That is until the payments are completed and the share transfers registered with Companies House.
The 2021 shareholder agreement that Kretinsky signed when he originally purchased his 27% dictates that if crosses a 50% ownership threshold in the club, he is legally mandated to make an automatic, comprehensive offer for the remainder of the club, which includes buying out David Sullivan’s remaining shares at a potentially inflated or pre-agreed premium price.
Who will be in control of the club really rests on if Kretinsky did actually sell any shares to Jakub Havrlant as was suggested before the pre-emptive process.
Every shareholder exercised their pre-emption rights in round one for the shares on offer from the Gold Family and an agreement between all existing shareholders meant that all of Golds shares were bought up in the first round of the pre-emptive rights process, so there were no shares left to buy in the second round.
David Sullivan bought 51.8% of the 25.1% stake representing approximately 13% of the club for £77.7 million
Daniel Křetínský bought 36% of the 25.1% stake representing just over 9% for around £54 million.
Tripp Smith bought 10.68% of the 25.1% stake representing approximately 2.68% for around £16 million
Terry Brown and Daniel Harris collectively bought the remaining 1.47% of the 25.1% stake representing approximately 0.37% for £2.3 million.
Following this, David Sullivan and other shareholders sold shares to Daniel Kretinsky so that he could reach 46% and become the largest shareholder.
From what we know, it looks like Sullivan has strategically positioned his investment to make it appear that his 40% along with Tripp Smith’s 11% would be enough to have controlling interest of the club. That being said, we also know that Tripp Smith was previously aligned and in agreement with Kretinsky, and that Sullivan will not have any operational control in the club or return to the board.
Sullivan has deliberately set things up in this way to make it look extremely attractive to an outside investor such as Staveley, knowing full well that if she makes him an offer, that it will have to be matched in the pre-emptive process, so a win – win for him same as it was for Gold.
It also means that if an offer is made then blocking it will be fairly easy for Kretinsky, but its trying to do it without going over the 50% to force an overpriced buy-out. Kretinsky has already had millions in funds wasted by Gold agreeing to the Staveley offer, and then having to buy those shares at an excessive price, which instead could have gone towards the club. The same could also occur with the Sullivan shares, but only for the 3.9% Kretinsky needs to possibly gain full control with Havrlant.
If an offer is made for the Sullivan shares, then through the pre-emptive rights process Kretinsky can buy enough to take him to 49.9%. And if he has already sold 2.2% to Havrlant, that gives him voting control of the club. If not then I’m positive he will try to make sure it gets done next time. But for Staveley to be able to bid on the Sullivan shares, they must still be available for sale after the two rounds of the pre-emptive process and it also means Havrlant can bid on them too. However, if Kretinsky has already sold them to Havrlant last time around – then Staveley is already done and cannot gain a controlling interest. It would seem that Sullivan is presenting the deal in this way to tempt her into making a massive offer.
No one actualy knows at this precise moment in time if Jakub Havrlant was sold any shares or not. Until all monies are paid and the shares exchange hands and are reported to Companies House, no one really knows the exact percentages and nature of the transfers. There have been a lot of reports detailing what people believe has occurred, but until its filed and is available for the public to see – no one knows for definite.
COYI
It could be that Staveley has already served her purpose.
Kretinsky having agreed to buy the Gold shares (At a lowered price), was sitting on his wallet, leaving VG stranded.
Maybe, VG hired Staveley to get involved to force Kretinsky to get his finger out, close the deal and pay a bit more.
Who’s to say AS & Co. won’t be walking away with a few £mil. for just being the catalyst that got the deal done?
Just sayin’.
Gonzo – you appear to not know the situation. If kretinsky goes above 50% he is forced by the original purchase agreement to buy all Sullivan shares at an agreed price that values the club at 800m. If he waits for stavely to agree a price, then he uses his pre-emptive rights to buy just 5% to own 51% and full control
I was pretty disappointed when Stavely was blocked as I like her enthusiasm to own the club and drive it forward as she has shown she can at Newcastle. Additionally Krentinskys reluctance to own the club outright just doesn’t sit right for an owner with any intention of trying to climb the heights of the premier league and potentially Europe in the future.
However he has put some good people in place and we are currently reaping the rewards of that it would seem.
What has crossed my mind in past couple of weeks though is stavely said she would build us a new stadium and most of us assume it’s on the same site , maybe land adjacent to the existing London stadium but this is prime real estate. Is it possible in her mind that a relocation is the way to extract maximum benefit financially from West Ham. I don’t doubt she would have good intentions for the football side of matters but could we stomach a move to the outskirts of London if she is trying to appease her backers and deliver them a handsome profit to reward while using using their funding to gain control of the club. It’s a puzzle and until we hear straight talking from kretinsky about the future and from stavely too about her intentions it’s hard to decide what’s best.
All this said either Kretinsky or stavely feels so much better than what we have just lived through with Sullivan and Brady ⚒
Staveley hasn’t beem blocked. This is part of an elaborate plan for her to own 51% of West Ham by buying out both Sullivan and Smith thus initially gaining control. This leaves Kretinsky as an investor (which I Imagine is all he wants). Staveley will then run the club.
This seems to be something that everybody but you has ignored. Why Sullivan now owns 40% and Tripp Smith 11%, equalling 51%, which would be enough to take full control. Why didn’t Kretinsky buy another 2% taking him to 48%? His friend who owns 2.2% would mean between them they own over 50% but without Kretinsky needing to buy Sullivan out. This is far from over and realistically perhaps points to Sullivan and Tripp Smith selling their stakes to Staveley at an inflated price
From what we know, it looks like Sullivan has strategically positioned his investment to make it appear that his 40% along with Tripp Smith’s 11% would be enough to have controlling interest of the club. That being said, we also know that Tripp Smith was previously aligned and in agreement with Kretinsky, and that Sullivan will not have any operational control in the club or return to the board.
Sullivan has deliberately set things up in this way to make it look extremely attractive to an outside investor such as Staveley, knowing full well that if she makes him an offer, that it will have to be matched in the pre-emptive process, so a win – win for him same as it was for Gold.
It also means that if an offer is made then blocking it will be fairly easy for Kretinsky, but its trying to do it without going over the 50% to force an overpriced buy-out. Kretinsky has already had millions in funds wasted by Gold agreeing to the Staveley offer, and then having to buy those shares at an excessive price, which instead could have gone towards the club. The same could also occur with the Sullivan shares, but only for the 3.9% Kretinsky needs to possibly gain full control with Havrlant.
If an offer is made for the Sullivan shares, then through the pre-emptive rights process Kretinsky can buy enough to take him to 49.9%. And if he has already sold 2.2% to Havrlant, that gives him voting control of the club. If not then I’m positive he will try to make sure it gets done next time. But for Staveley to be able to bid on the Sullivan shares, they must still be available for sale after the two rounds of the pre-emptive process and it also means Havrlant can bid on them too. However, if Kretinsky has already sold them to Havrlant last time around – then Staveley is already done and cannot gain a controlling interest. It would seem that Sullivan is presenting the deal in this way to tempt her into making a massive offer.
No one actualy knows at this precise moment in time if Jakub Havrlant was sold any shares or not. Until all monies are paid and the shares exchange hands and are reported to Companies House, no one really knows the exact percentages and nature of the transfers. There have been a lot of reports detailing what people believe has occurred, but until its filed and is available for the public to see – no one knows for definite.
COYI
This does beg the question – is Kretinsky the way forward?
He is quite low-key..does he have any real ambitions? Would Staveley genuinely change things?
Because despite Sullivan being everybody’s favourite scapegoat for every problem – things haven’t really been that different without him in charge.