The former Chairman's resignation comes as the Hammers prepare to hear whether the Premier League will charge them over any breach of rules that may have occurred with the summer signings of Carlos Tevez and Javier Mascherano.
The PL are investigating a breach of rule U18 which forbids any outside agency having contractual control of a player.
Both Tevez and Mascherano arrived from Corninthians under the arms of Anglo- Iranianin busiessman Kia Joorabchian in a deal which stunned world football. Joorabchian then announced his intentions to buy West Ham United and the Tevez and Mash deal was seen by many as a 'sweenter' or 'down-payment' for the sale of the club.
The Joorabchian deal fell-through with rumours of Brown and former Managing Director Paul Aldridge dragging their heels in an attempt to bump-up the valuation of the club but in came the unfortunate Icelandic buscuit barron Eggert Magnusson.
Magnusson has sat and watched his inherited bunch of players consitantly under-perform this season and despite changing the manager and spending almost £18 million in January in a bid to stave off relegation it looks as though the Hammers are doomed.
The Premier League may decide to dock the Hammers points and hit the club with a huge fine if any rules are found to have been breached. This despite Magnusson's pleas that West Ham should not be punished for any wrong-doings made by the former owners of the club.
It was reported last week that Eggert will pursue legal action against Brown and Aldridge if the Hammers are punished for the mistakes of the former regime.
Magnusson has now spent over £100 million on his investment in West Ham United and with relegation looming the club can expect to lose out on almost £50 million next year by not playing in the Premiership. The charismatic businessman must be wondering whether or not it was all worth it.