West Ham United were already a questionable purchase in the short term, but the chances of concluding a takeover appeared more unlikely after their Icelandic owners formally valued the club at £250 million last night, more than double what they paid two years ago. The owners, who put the value in court papers lodged in Iceland, appointed a bank several months ago to determine the extent of interest in the club, but their difficulty in attracting serious buyers was highlighted yesterday by their attempts to stoke up interest.

Björgólfur Gudmundsson’s valuation of his club would even have been excessive eight months ago, before the full effects of the global economic crisis were known. But potential buyers are also concerned by the chance that the club could be relegated, debts approaching £50 million and unknown liabilities that may need to be paid to Sheffield United for the Carlos Tévez affair.

Similar concerns have impacted on other owners trying to sell Barclays Premier League clubs. Newcastle United, Portsmouth and Everton have effectively been up for sale for some time, but none are close to a takeover. Global financial turmoil has made a dent in the pockets of potential investors, who fear that clubs are overvalued, even without the potential for reduced future income from sponsorship, advertising and ticketing revenue.

West Ham’s difficulties arose after Gudmundsson lost hundreds of millions of pounds after the collapse of Landsbanki, the Icelandic bank of which he was chairman and a major shareholder, in October. Asgeir Fridgeirsson, the club’s vice-chairman, admitted for the first time that the club are seeking a buyer. “There is a great interest in the club and many interested parties are calling to show interest,” Fridgeirsson said. “We are reviewing the asset, looking at what might be the value of the club. It is part of reviewing the assets of Mr Gudmundsson.

“Following such a review we will take a decision whether to sell or not. We don’t have to sell. It’s a process where we are gathering options and information to see what is out there in terms of demand.”

In reality, West Ham need to be sold by early January to ensure that transfer funds can be made available to Gianfranco Zola, the manager, to ensure their survival in the top flight this season. They are only a point above the relegation zone, despite a hard-fought 1-1 draw away to Chelsea on Sunday.

Craig Bellamy and Matthew Upson are a target for bigger clubs, but Lucas Neill has said that he wants to sign a new contract before his deal expires this summer. The defender, 30, who earns £70,000 a week, asked for a rise last summer but he is likely to be offered less than half that sum. He turns 31 in March. “I want to finish my career here,” he said. “I know the [financial] situation at the club and the way things have gone. I love the club and the role they have for me.

“The players aren’t worried [about relegation]. No one is thinking or talking about leaving. I have had assurances from the manager that he wants me to stay. He likes what he has here and wants to build on that. He doesn’t want to remove the quality he has because it will affect his plans massively and what we are trying to achieve.”