Sport feeling the pinch

Sport has become the latest victim of the credit crunch as a wave of financial turmoil threatens to throw some of the world's biggest names into crisis.

Football and Formula One look most in danger as global economic problems deepen, with leading figures in both sports yesterday voicing concern that the lavish spending of recent years may no longer be sustainable.

On a day when Football Association chairman Lord Triesman claimed debts totalling £3billion could leave some English clubs in "terrible danger", West Ham were forced to play down concerns over their financial future.

The nationalisation of Icelandic bank Landsbanki left Hammers chairman Bjorgolfur Gudmundsson with a major shareholding which at a stroke became almost worthless.

Already talk has turned to the effect Gudmundsson's problems may have on manager Gianfranco Zola's plans as the club looks to reduce costs, although chief executive Scott Duxbury was last night confident that the disruption would be minimal.

He 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."

The Hammers also lost their shirt sponsor when travel company XL folded, owing the Londoners £2m.

West Ham are far from the only Barclays Premier League club suffering as a result of the economic downturn.

Liverpool chief executive Rick Parry admitted at the weekend that the Merseysiders' new stadium would be delayed until credit markets improve.

Newcastle owner Mike Ashley has, meanwhile, been forced to knock over £100m off his initial reported valuation of the club as he seeks to attract a buyer.

And Manchester United were forced to calm fears over their own shirt sponsor, insurance giant AIG, after the American government were forced to step in with a rescue package to save the struggling firm.

Premier League chief executive Richard Scudamore has played down any talk of financial meltdown, however, claiming: "Our clubs are all heavily regulated but they've also got directors and owners who will assess the level of risk of their overall debt.

"This is at the top of clubs' agendas and I think they are managing it responsibly."

Away from football, FIA president Max Mosley added to the gloom last night when he claimed Formula One must introduce extensive spending cuts or risk losing a host of teams by the end of next year.

Super Aguri dropped out of this season's championship following the Spanish Grand Prix due to a lack of funds and Mosley fears at least two more teams may also have to withdraw from the championship.

"It had become apparent long before the present economic difficulties that Formula One is unsustainable," Mosley told the BBC.

"If we can't get this sorted out by 2010 we will be in serious difficulty. We can survive through 2009, but I'm not too sure about after."

Organisers of the 2012 Olympics in London have also been forced to recalculate their budgets amid the financial crisis.

Some sports continue to buck the economic trend, however, with golf's European Tour recently announcing details of next season's lucrative 'Race to Dubai' - a replacement for the Order of Merit - which will culminate in the 20 million US dollars World Championship in the emirate.

And if a sponsorship row can be settled, next month will see the inaugural 20 million US dollars Twenty20 match between England and the Stanford Superstars in Antigua.

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