West Ham’s Olympic Stadium deal revealed
PUBLISHED: 10:55 14 April 2016 | UPDATED: 11:46 14 April 2016
West Ham United’s rent at the Olympic Stadium has been confirmed as £2.5million.
The full contract has been revealed by the London Legacy Development Corporation just days after a tribunal ordered the information to be made public.
West Ham, who move in this summer, will pay the sum each year for the duration of the 99 year lease, though it will be halved should they be relegated from the Premier League.
In addition, the first £4million of any naming rights deal will go to the LLDC and Newham Council, with anything above that split between them and the club.
An LLDC spokesperson said: “We are disappointed by the tribunal’s decision. Our motivation in bringing this case has been to protect millions of pounds of taxpayers’ money.
“The Stadium needs to be a profitable and successful commercial operation otherwise it will rely on public subsidy.
“We were concerned that the publication of this contract and the precedent it may set for future agreements could make it harder to do this.
“However, we have decided not to seek leave to appeal, and have today made the contract available on our website.”
A spokesman for the Olympic Stadium Coalition, made up of 14 supporters’ groups and trusts, welcomed the publication and thanked those involved.
He said: “We would first like to thank the LLDC for finally seeing common sense and publishing what appears to be the full agreement.
“This is the right decision for the taxpayer, and the right decision for football.
“This is a victory for the power of football supporters: Organised, focused and willing to work together to achieve a collective goal.”
As part of the 207-page contract, the Hammers cannot hold more than two friendly matches and two youth matches at the stadium each season.
They also cannot arrange any fixtures during the 2017 Athletics World Championships, taking place between July 15 and August 13 – which could affect the club’s pre-season commitments and, should the club be playing either Championship or Europa League football in the 2017/18 season, their ability to host competitive matches in the early rounds.
In a statement, the club said: “This publication does not affect West Ham United or our move to the former Olympic Stadium in any way.
From our perspective, we welcome the publication of the concession agreement as it proves that, as we have always maintained, the club has nothing to hide.
“But while someone renting the stadium for 25 days a year cannot be responsible for 365 days’ running costs, going by our performances this season, we hope to deliver additional revenue to the stadium via extended cup runs and big European nights.
“This will secure the international exposure and additional usage and revenue that may now be more challenging for the stadium owners to find elsewhere as a result of this ruling.”
Qualifying for Europe or success in the FA Cup will see the Hammers pay extra rent to the LLDC.
A season such as this, where the club is likely to qualify in the Europa League in the following year, will cost them £100,000, and should the Champions League group stage be achieved, it will cost £250,000.
Winning the Europa League or FA Cup will see them pay £100,000 a time, and should the Champions League trophy ever take up residence in the cabinet, it will come at a cost of £1million.
Finishing 10th or above in the league will also see additional payments made – should the Hammers be crowned champions they will have to pay £775,000.
The club’s £2.5m base deal covers 25 competitive matches each season, with any additional match coming at a cost of £100,000.
For the seasons where the club plays in lower leagues, with more fixtures, the £1.25m deal covers 30 competitive matches, with any extras also costing £100,000.
If you value what this story gives you, please consider supporting the Newham Recorder. Click the link in the orange box above for details.