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The football regulator could force David Sullivan to sell his stake in West Ham United after the former pornography billionaire was accused of sexually exploitative and predatory behaviour against women over several decades.
The 77-year-old announced his resignation as a director and co-chair of the football club on Saturday, ahead of a joint investigation by the BBC and the Times reporting on seven women accusing him of sexual misconduct.
Three women alleged Sullivan abused his power as the owner of the Sport newspapers to prey on them for sex when they were seeking work. A further four women accused Sullivan of exploitative and predatory behaviour, including allegations he tried to pressure them into sex during business meetings.
The BBC and Times said their reporters had spoken to dozens of former models and industry insiders, with some sources alleging Sullivan was known for “casting couch” behaviour.
Sullivan has denied the allegations, which the BBC and Times said spanned decades, starting in the 1980s and involving women in their late teens and early 20s. Through his lawyers, Sullivan said: “I categorically deny all of these complaints.”
He added: “After a lifetime spent building businesses in the adult industry, in which I have met thousands of women, it is sadly inevitable that a small number of improper conduct claims are being made against me.” He did not respond to follow-up queries from the Guardian.
Sullivan, who remains the largest shareholder at West Ham with 38.8%, has been a prominent figure in English football for more than 30 years. English football’s new Independent Football Regulator said the allegations were “extremely serious” and confirmed it was seeking further information from Sullivan.
The IFR, introduced under last year’s Football Governance Act, is the game’s independent watchdog and oversees its own owners, directors and senior executives (ODSE) regime for clubs across the Premier League and English Football League. It has the power to expel any figures it considers unsuitable. “Honesty and integrity” assessments of owners are part of its remit.
An IFR spokesperson said: “These are extremely serious allegations. We are in contact with West Ham on this matter and will use our statutory powers to seek urgent information from David Sullivan relating to his suitability under our owners, directors and senior executives regime. We are unable to comment further at this stage.”
Sullivan bought a 50% stake in West Ham with his business partner, the late David Gold, in January 2010. It remains to be seen whether he tries to hold on to his stake, although a source close to Sullivan has indicated he is open to selling up. His sons, Jack and Dave Jr, remain directors at West Ham. Sullivan did not address questions from the Guardian about whether he would sell his stake or try to pass it on to his sons.
It is unclear if Daniel Křetínský, a Czech billionaire who owns a 27% stake in the club, will look to increase his shareholding. Plans for Křetínský and Sullivan both to buy a portion of the Gold family’s 25.1% shares in West Ham and become equal partners in the boardroom were put on ice after the club’s relegation from the Premier League last month.
West Ham are in financial trouble after dropping into the Championship and posting a loss of £104.2m last year. Several executives have left the club in recent months, most notably Karren Brady, who stepped down as vice-chair in April.
