New West Ham money man and co-owner Daniel Kretinsky made a whopping £138m overnight and has had nearly £1bn added to his net worth through investments.
The international break is boring for most football fans, but there is never a dull moment at West Ham.
And so it proved as the Hammers put the seal on a deal to sell a 27 per cent stake in the club to “Czech Sphinx” Kretinsky during the pause in action (whufc.com).
According to reports the investment values West Ham at over £600 million.
There has been a lot written about Kretinsky, his ambitions, his background and his worth.
And despite conflicting reports there is understandable excitement among West Ham fans.
Hammers News has previously reported the Sparta Prague owner’s net worth is around four times that of David Sullivan and David Gold at around £4 billion – but he is also in line to inherit a large share of a £15bn empire.
The excitement around Kretinsky’s arrival was tempered somewhat by reports over the last couple of weeks from several media outlets that his investment in the club will not necessarily mean West Ham will be flush with cash.
The likes of The Evening Standard and Daily Star state that money from Kretinsky’s investment will be directed at reducing West Ham’s debt – which Sullivan told Hammers News last month stood at £150 million.
Kretinsky became West Ham’s second biggest stakeholder behind Sullivan thanks to the deal.
Many Hammers fans believe it is the first move in what will eventually become a full takeover, as has been speculated in widespread reports.
Last week there were big claims made by Kretinsky’s spokesman Daniel Castvaj, Czech reporter Michael Mares – who used to work for Forbes – and an author who wrote a book about about the Czech Sphinx when speaking about the billionaire’s wealth and his access to funds.
Now The Guardian has revealed that West Ham’s Kretinsky made £138m overnight from a share price rise in two of his investments.
And one of Kretinsky’s investments has added an extra near £1bn to his net worth.
New West Ham money man Daniel Kretinsky made £138m overnight and has nearly £1bn added to his net worth
“On the stock market, Kretinsky has also gone for household names, building up big positions in Sainsbury’s and Royal Mail, whose executives confirmed that he has discussed strategy with them,” The Guardian states.
“His bets on both appear to have paid off handsomely already: since his investment vehicle Vesa Equity Investment increased its stake in Sainsbury’s to 9.9% in April, the supermarket’s share price has risen by a fifth, giving paper gains of well over £100m.
“Royal Mail’s share price has almost tripled since Vesa first bought in. On Thursday, Royal Mail delivered a £200m dividend, from which Vesa should garner about £38m, based on a 19% shareholding that is now worth more than £900m.”
Direct interviews with Kretinsky are scarce and difficult to come by.
He does not seek out the limelight but a spokesman for West Ham’s new money man told The Guardian that “he is not afraid to go against the tide – when others sell, he buys and vice versa”.
Vesa considers itself to be a strategic, long-term investor, Kretinsky’s spokesman added.
It seems any concerns over Kretinsky’s wealth are completely unfounded.
Indeed as far as money men go this guy is seriously liquid cash rich and clearly has access to huge funds for investment.
Other owners have their net worth tied up in things like property.
But as reported last week, Kretinsky’s camp claim his shrewd investments give him access to over £700m of cash to invest in whatever takes his fancy EVERY YEAR.
Exciting times are surely ahead for West Ham.
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