Gudmundsson's Cash Injection to Help Hammers' Bid for a New Stadium

Alan Curbishley must operate on his regular transfer budget despite the £30.5m cash injection West Ham United has received as a result of Bjorgolfur Gudmundsson's full takeover of the club today. Gudmundsson bought up the 5% of shares that belonged to Eggert Magnusson to take full control, installing himself as chairman while his Icelandic countryman severed all his Hammers ties.

The club announced today that the new money will "bolster the financial base" of a side that is currently 10th in the Premier League. That move was required after some short-term borrowings were used to fund the £45m spent on the arrivals of players such as Freddie Ljungberg, Kieron Dyer and Craig Bellamy.

Gudmundsson heads a new board that will see three directors of the WH Holding parent company join the club's board as well as the co-option to it of Mike Lee, who has previously been operating as an external strategic adviser. The first task of the new entity will be to further the development of a new 60,000-seat stadium at the site of an old Parcelforce depot near West Ham underground station.

Although the development does not signal a new bonanza for Curbishley, Gudmundsson did underline his commitment to his manager in a prepared statement. "We are seeking to build some truly solid foundations for the future ambitions of West Ham," said Gudmundsson.

"My job as owner is to help plan for the future and create the right conditions off the field to help Alan Curbishley and the playing squad deliver success on the field. I am particularly delighted that we have been able to take the first real step in our plans for a new stadium, which is crucial to the long-term ambitions of the club."

The outgoing Magnusson was said to have taken the decision to stand down himself as he indicated he would now "focus a little more on interests overseas". But a number of decisions he took as chairman, most particularly in player-wage negotiations, did alarm Gudmundsson and may be considered to have contributed to his departure.

"The last 12 months have not been without their challenges but I feel that we have emerged stronger and fitter as a club," he said in a statement. "Bjorgolfur has always supported me as chairman and I am pleased that he has decided to take over the role to help the club move onto the next level."