Björgólfur Guðmundsson
Björgólfur Guðmundsson | |
|---|---|
| Born | 2 January 1941 Reykjavík, Iceland |
| Died | 2 February 2025 (aged 84) |
| Occupation(s) | Entrepreneur, businessman |
| Known for | Chairman and principal owner of West Ham United; chairman of Landsbanki |
Björgólfur Guðmundsson (2 January 1941 – 2 February 2025) was an Icelandic entrepreneur who formerly served as chairman and principal owner of West Ham United. He was recognized as Iceland's second billionaire businessman, following his son, Björgólfur Thor Björgólfsson. Björgólfur held a majority stake and chaired the Icelandic financial institution Landsbanki, which was the country's second-largest corporation prior to its government takeover. In March 2008, Forbes listed him as the 1014th wealthiest individual worldwide, estimating his fortune at $1.1 billion. Nevertheless, by December of the same year, Forbes assessed his net worth as nil, and on 31 July 2009, Icelandic courts declared him bankrupt with liabilities approaching £500 million (96 billion ISK).
Jamie Jackson of The Guardian characterized Björgólfur as "a former football player, furniture packer, and law student, a recovering alcoholic for three decades, and a traditional philanthropist," highlighting his diverse background. During the 1990s, he received a suspended one-year prison sentence for accounting offenses following approximately 450 charges. After rebuilding his wealth in Russia, he returned to Iceland where his enterprises encompassed shipping, media, food production, telecommunications, and real estate.
Early life and marriage
Born in Reykjavík, Iceland, Björgólfur was the son of Guðmundur Pétur Ólafsson (1911–79), who worked as a driver, and Kristín Davíðsdóttir. He was raised on Framnesvegur alongside an older brother named Davíð and three sisters. According to his son, Björgólfur originated from a working-class family; his father experienced a stroke around 1945.
He completed his studies at the Commercial College of Iceland in 1962 and participated actively in the youth division of the Independence Party, where he was regarded as a promising individual with proficiency in English and a polished demeanor.
There are claims that in 1958 Björgólfur played a role in facilitating the return of Margrét Þóra Hallgrímsson from the United States after she left her first husband Haukur Clausen to marry American Nazi George Lincoln Rockwell. However, his son contends that their acquaintance began only after Þóra’s arrival back in Iceland. Björgólfur married Þóra in 1963 and adopted her children from both Clausen and Rockwell. Together they had one son, Björgólfur Thor Björgólfsson (born 1967).
Between 1962 and 1977, Björgólfur established and managed Dósagerðin hf.; from 1977 until 1986 he served as director of Hafskip, supervising its European and American subsidiaries. During this timeframe, he battled alcoholism but sought treatment at the Hazelden facility in Minnesota in 1978 and maintained sobriety thereafter.
Hafskip affair
The shipping firm Hafskip competed primarily against Iceland’s long-established operator Eimskip, which was co-founded by the father of Björgólfur’s wife. Initially, both companies secured significant contracts transporting supplies to the U.S. military base. The entry of an American company into this route placed Hafskip under financial strain. Björgólfur expanded operations through borrowing but encountered liquidity problems during the early 1980s due to limited banking support and financial instruments. His lender, Útvegsbankinn, eventually declared Hafskip in default on its loans.
Björgólfur faced legal action for accounting violations resulting in a twelve-month suspended sentence. Some interpretations suggest this prosecution was politically motivated by the Progressive Party to undermine an Independence Party affiliate and eliminate competition against Eimskip.
This episode had a profound impact on both Björgólfur and his son, inspiring them to restore their reputations through future business endeavors. Additionally, Björgólfur established a successful alcohol rehabilitation center in Reykjavík as part of his efforts toward personal redemption.
From 1986 to 1991, he owned and managed Icestar Ltd. based in Copenhagen while also providing consultancy services for AMA Agencies in London.
Beverage entrepreneur in Saint Petersburg
After the Hafskip scandal in 1991, Björgólfur assumed leadership of Pharmaco’s brewery and soft drinks operations. When Pharmaco decided to divest its bottling equipment, he joined forces with Ingimar Haukur Ingimarsson (operating out of St Petersburg), Magnús Þorsteinsson (chairman of Avion Group), and his son Björgólfur Thor to launch Bravo Brewery. Despite ongoing legal conflicts with Ingimar Haukur, Bravo Brewery experienced substantial growth.
In collaboration with Russian partners, they established the Baltic Bottling Plant, which was eventually sold to Pepsi. Subsequently, they founded Bravo International OOO in 1996, which transitioned into Bravo International JSC by 1997. The brewery gained recognition through its premium beer label Botchkarov.
A 2005 article in The Guardian noted that these Icelandic investors poured significant capital into St Petersburg’s beverage industry during the 1990s—a sector closely intertwined with organized criminal networks. At that time, Vladimir Putin chaired the city’s Committee on External Economic Relations, overseeing foreign business activities. Rival firms encountered violent obstacles including executive assassinations and brewery arson attacks. Nevertheless, Bravo Brewery emerged as the fastest expanding brewery in Russia.
In 2002, Heineken purchased Bravo for $400 million, providing Björgólfur with a substantial exit and prompting his return to Iceland.
The peak period: chairman of Landsbanki
Towards the end of 2002, Samson ehf., the holding company controlled by Björgólfur Thor Björgólfsson and Björgólfur Guðmundsson, acquired a 45% majority stake in Landsbanki, Iceland’s second-largest bank, for approximately 12.3 billion ISK amid a contentious privatization process. The new board was announced in February 2003, appointing Björgólfur Guðmundsson as chairman.
During this era, Björgólfur became recognized as Iceland’s foremost philanthropist, contributing both personally and via Landsbanki—which initiated the "Give help to a good cause" program. His prominent patronage included significant financial backing for the National Theatre of Iceland, the Iceland Symphony Orchestra, Listahátíð í Reykjavík, the Icelandic Opera, the Football Association of Iceland, along with various cultural and educational organizations. However, evaluations after 2008 indicate that this extensive sponsorship may have suppressed critical scrutiny of the banking boom, indirectly facilitating its eventual downfall.
Björgólfur also expanded his influence through media ownership. In 2002, he acquired a controlling 68% stake in Edda, Iceland’s largest publishing house. He exerted editorial authority, notably intervening in Guðmund Magnússon’s 2005 book Thorsararnir, published by Edda—altering content and destroying its initial print run. Efforts were made to take over and close down the newspaper Dagblaðið-Vísir. Ultimately, he succeeded in purchasing Iceland’s sole broadsheet newspaper Morgunblaðið and its associated news website mbl.is, thereby strengthening his media dominance.
The financial collapse and declaration of bankruptcy
Björgólfur stepped down as chairman of Landsbanki on 7 October 2008 when the Icelandic Financial Supervisory Authority (FME) intervened and replaced the bank’s board. Following the near failure of Iceland’s banking sector, he became widely regarded as a central figure responsible for the economic meltdown. In 2009, he filed for personal bankruptcy with debts totaling $750 million—$500 million of which was owed to Landsbanki—constituting one of the largest personal insolvencies at that time. In 2010, Time magazine included him among the world’s hundred most influential individuals due to his involvement in Iceland’s financial crisis.
Other ventures 2002–2008
An avid supporter of football, Björgólfur spearheaded the group that took ownership of the English Premier League team West Ham United. He acquired a 90% majority of the club and was named Honorary Life President in June 2006, sharing this distinction with Eggert Magnússon, who held the position of Chairman. In December 2007, Björgólfur purchased Eggert’s remaining 5% share and took over as chairman. On 8 June 2009, control of West Ham transferred to the asset management firm CB Holding, leading to the resignations of Björgólfur and vice-chairman Ásgeir Friðgeirsson from the board.
Passing
Björgólfur passed away on 2 February 2025 at the age of 84.
Cultural references
- The character Haraldur Rúriksson in Þráinn Bertelsson's 2004 roman à clef Dauðans óvissi tími was inspired by Björgólfur.
- He also serves as a central figure in Bjarni Harðarson's satirical work on Iceland’s financial crisis, Sigurðar saga fóts: Íslensk riddarasaga, where his fictional counterpart is Bjarnhéðinn 'kaupahéðinn' Jónsson.