Fears grew last night that West Ham United are on the brink of a financial crisis after Björgólfur Gudmundsson, the West Ham United owner, was dragged into the global credit crisis. The collapse of Landsbanki, the Icelandic bank of which Gudmundsson was chairman and a major shareholder, raised fears that he would need to sell the club. While shares of the bank are suspended after it was nationalised yesterday, Gudmundsson’s stake in it is notionally worthless.

Gudmundsson has said that there are no plans to sell the Barclays Premier League club, but he could not rule out the possibility if his other investments are affected by the turmoil in the markets. He has refused to consider interest from at least one serious potential buyer in recent weeks, but is bound to find more vultures circling over the coming days. The club are worth nearly three times the £85 million that he paid two years ago — taking on £20 million in debt — since when he has injected £30 million.

Asgeir Fridgeirsson, the West Ham vice-chairman, said that Gudmundsson’s ownership of the club is a personal investment not linked to Landsbanki and that his wealth is built on a diverse portfolio that includes construction, brewing, shipping, seafood production, property and media investments. The portfolio was estimated to be worth more than £1 billion last week, but considerably less after the plunge in share prices this week.

“It is, of course, a blow for him and his financial strength, but he has a number of other investments that are doing quite well at the moment, so there is no reason to fear that he will not honour his commitment to West Ham,” Fridgeirsson said yesterday. “I don’t think there’s any reason to be too pessimistic. West Ham is a wonderful club and a well-run company.

“At the moment, we are not actively in the process of selling the club and as it stands there is not a need to do so. We haven’t accepted any bids. There have been agents all around trying to get our attention, but we have turned them away. Gudmundsson is not going to take money out of the club but on the other hand these events have limited his options for further investment this year.”

Gianfranco Zola has been told that he will not receive transfer funds in January and the West Ham manager will have to trim the squad of 34 by about ten players to raise money for signings. “Our manager feels it is not necessary for it to be of that size,” Fridgeirsson said. “The club is standing strong. It is generating revenues.”

Gudmundsson faces the further uncertainty of West Ham potentially paying compensation to Sheffield United after the independent tribunal hearing over the Carlos Tévez affair, and he and his son, a billionaire, recently invested £150 million to honour a loan owed by XL, the travel company and West Ham’s shirt sponsor, after its collapse. XL also owed £2 million to the club, who have not signed a replacement sponsor.

There was a boost for West Ham’s bid to overturn the decision to award Sheffield United compensation after their relegation from the Premier League two seasons ago. The Court of Arbitration for Sport has opened the door to it hearing the dispute by asking Sheffield United to consent to its jurisdiction or provide written reasons against it by Friday. West Ham are encouraged by the request because the court in Lausanne has, in other cases, immediately ruled out its power to adjudicate.

West Ham were ordered to pay compensation to the Yorkshire club, who have estimated that relegation cost them £30 million in income. The arbitration panel has adjourned its deliberations on the amount of compensation until December, but assessing it could take months. West Ham have argued that Sheffield United must validate the money that they lost. West Ham are also exploring the possibility of an appeal to the High Court and making representations to Fifa.