West Ham under pressure from Iceland crisis

West Ham United is denied ongoing media rumours that the collapse of Icelandic bank Landsbanki is going to affect the financial stability of the club.

Speculation over West Ham's finances has been rife since Iceland's Landsbanki was taken over by the national government and put into liquidation as the team's owner Bjorgolfur Gudmundsson is a majority shareholder of the Icelandic lender.

West Ham has already been hit by the economic slowdown, after its shirt sponsor, travel firm XL, went bust last month.

In a statement, West Ham denied claims the current financial crisis would impact on the owners to any extent that would have a bearing on the Upton Park outfit's future.

Chief executive Scott Duxbury said: "The position of Landsbanki has absolutely no effect on West Ham United and Mr Gudmundsson's ownership of the club.

"Mr Gudmundsson is an investor with a large portfolio, of which Landsbanki was just part.

"He remains as committed as ever to West Ham United and is not looking to sell the club."

Despite this assertion, it has also been confirmed that the squad will be trimmed in January although the Duxbury denied this would be done against the wishes of new head coach Gianfranco Zola.

"As has previously been stated, Mr Gudmundsson has invested £40m net in the playing squad to create a squad capable of challenging in the top half of the Premier League," Duxbury continued.

"Since his appointment, Gianfranco Zola has made it quite clear that his first-team squad is too large and needs to be reduced so he can effectively coach the team.

"Once this has happened, and if the manager requires further players, then the club will acquire them.

"Mr Gudmundsson remains fully committed to the success of this football club and building on the excellent start made by Gianfranco Zola."

The club could also face a penalty of up to £30 million over the signing of Argentine striker Carlos Tevez.