News from US could shape West Ham takeover as billionaire speaks out on £795m deal

The latest financial news from the United States could theoretically have a major bearing on a potential West Ham takeover.

The Hammers are currently seeking fresh investment, which would likely come in the form of a minority acquisition.

Vanessa Gold, the widow of the late David Gold, is looking to sell a chunk of her shares.

At one stage, it looked as though Czech multibillionaire Daniel Kretinsky would take full control of the club, but the 27 per cent shareholder has not exercised his option to buy a majority stake.

Vice-chairman Karren Brady recently set out to the Middle East to court potential investors, but that trip is not believed to have yielded many leads.

One more left-field option has emerged in recent days.

NBA legend Shaquille O’Neal is reportedly keen to invest in West Ham, although this would almost certainly be a token investment in the style of Tom Brady at Birmingham or Will Ferrell at Leeds United.

Now, the latest financial news from across the pond may mean that the mergers and acquisitions market could be about to shrink, with consequences for West Ham.

Rising interest rates could rule out American ownership at West Ham

Every time a Premier League club is for sale or seeking investment, the same groups of investors crop up.

In recent years, the two biggest shoppers have been Gulf state sovereign wealth funds and American private equity firms.

Many groups in the latter camp use loans to finance acquisitions.

However, as reported by the Financial Times, top Federal Reserve official Michelle Bowman has claimed that the US may need to raise interest rates in the near future.

That would potentially have a dramatic impact on private equity, for whom more expensive debt financing makes acquisitions in football and beyond more difficult.

That could theoretically dramatically reduce the pool of investors who could theoretically be looking at a West Ham takeover.

The likes of MSP Sports Capital, Liberty Media and 777 Partners have all been linked with takeovers in the Premier League recently.

It is hard to conceive that there has not been interest in West Ham from this class of investors, so higher interest rates in the US could have a material effect on what transpires at the London Stadium.

• READ MORE WEST HAM FINANCE NEWS: West Ham have three rivals for £100m off-pitch deal as external talks held

US private equity investor says West Ham worth £795m-plus

Gregg Bettinelli is a partner at US private equity firm The Chernin Group, who control assess of almost £2.4bn.

Speaking on the Price of Football podcast recently, Bettinelli claimed West Ham could fetch anywhere between £795m and £2.65bn.

The reason for the huge margin between the two values is because of the multipliers Bettinelli used in his equation.

In reality, while West Ham are a very attractive investment proposition, the true figure is likely to be towards the more modest end of that spectrum.

In any case, any deal to invest in West Ham is likely to be a minority deal at this stage.