Heat on for Hammers as Iceland melts

The West Ham manager Gianfranco Zola shows his disappointment at Sunday's 3-1 loss at home to Bolton.

West Ham United have moved quickly to challenge reports that their Icelandic owner Bjorgolfur Gudmundsson is facing financial ruin, just hours after the Fifa president Sepp Blatter questioned the motives behind foreign ownership of English Premier League clubs.

Gudmundsson is a major shareholder in Landsbanki, Iceland's second largest bank, which yesterday went into receivership. It is expected to be nationalised, and its plight has prompted uncertainty over his ownership of the club. Gudmundsson, 67, and his son own around 40 per cent of Landsbanki. It has been claimed that the bank's problems could see him lose his personal fortune, but sources at the club are adamant it will not impair the running of West Ham. Bjorgolfur has been ranked by Forbes Magazine as the 1,014th richest individual in the world with a net worth of US$1.1billion (Dh3.6bn). He and his son are both dollar billionaires.

"This is not affecting West Ham," a boardroom member said in comments made to the BBC. "One of Mr Gudmundsson's investments has gone bad, but he is still standing and has a lot of other investments." Blatter used a press conference at the European Parliament to express concern about overseas investment, citing the example of the former Manchester City owner Thaksin Shinawatra, the former-prime minister of Thailand, who sold the club to the Abu Dhabi United Group, a private equity fund led by Sheikh Mansour bin Zayed.

Shinawatra sold his majority stake amid allegations of corruption in his homeland. "Something has to be done about these billionaire owners," Blatter said. "These days you can buy a club as easily as you buy a football jersey. There is something wrong and that's why I ask the EU to act. "This is not just about England where the problem is acute. This will spread across Europe. "Some of these owners prefer horse racing, others like to buy a Formula One team, now buying a football club is the big attraction."

Blatter's comments are at odds with the perspective of the new owners of Manchester City, and with their declared aims for the club's future progress. They have assured supporters that they have a long-term vision to develop the club at youth and senior level, in particular building on the highly acclaimed work of the youth academy. The new owners are determined to improve the club's standing in the Premier League, leading to involvement in the Champions League.

"We want to bring this club back to the community and to the fans," said City's new chairman Khaldoon al Mubarak. "With our backing, with the commitment we are going to make to the academy in the next 10 years there is going to be a tremendous period for Manchester City and for us. And I think we are going to have a blast doing it! "Sheikh Mansour is absolutely delighted, he is a huge fan of football and of Manchester City, and he asked me to take on this role on his behalf.

"He will come to games and I will as often as I can. This club will be run professionally, and we want to sit and support from the side."